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Incentives


Regional Incentives

CITY OF YUMA ECONOMIC DEVELOPMENT FUND

The City of Yuma has created a performance based incentive fund designed to encourage new business development. business expansions. and relocations. The fund can provide up to $500 per new hire, given to the company in an upfront cash grant award.

YUMA COUNTY ECONOMIC DEVELOPMENT FUND

Yuma County has created a performance based incentive fund designed to encourage new business development. business expansions and relocations with infrastructure improvement requirements. The value of the fund is indexed based upon the cost to hire and train qualified new employees and/ or infrastructure improvements to county maintained property up to $1,000/per new hire.

WORK FORCE SALARY AND TRAINING GRANT

Yuma's Workforce Board offers programs that cover the entire costs of employee training. including teaching. materials, equipment and other expenses. Companies can additionally qualify for reimbursement of 50% employee salaries paid during training for up to 6 months.

CONSTRUCTION SALES TAX REIMBURSEMENT

The incentive provides up to 100% credit of construction sales tax to qualifying expenses such as job-training. public infrastructure improvements and/ or offsets to impact fees.

WATER AND SEWER CONNECTION FEE AMORTIZATION

Cities may amortize the cost of water and sewer connection fees up to seven years from the agreement date in order to assist companies with alleviation of up-front construction costs. Cities can not legally waive fees.

PLAN PERMIT EXPEDITION AND FEE WAIVERS

The Cities pledged to expedite permits in as little as 15 days based upon designed and application completion. The City may also waive building. plan. and development permit fees.

MEXICAN HEALTH CARE PLAN

The Mexico plan is underwritten by U.S. based firms and affords individuals the option to seek medical care in either San Luis Rio Colorado, MX or Algodones, Baja, MX (both sister cities to Yuma). Premium cost savings can include up to 1/3 of the cost of a traditional U.S. plan.

INDUSTRIAL DEVELOPMENT BOND

Industrial Development Authorities created by various municipalities within Yuma County, or the Yuma County IDA. are prepared to issue Industrial Development (IDB) for the construction of a qualified project on a conducting basis for the company. The interest on the debt obligation may be tax exempt and therefore bears a lower interest rate (1-2% below market) and the term for bonds may be as long as 30 years. (IDA may issue taxable and tax-exempt bonds)

NEW MARKET TAX CREDITS

Below market interest loans guaranteed by the federal government for the purpose of stimulating development in rural communities. Companies utilizing New Market Tax Credits pay on the interest only of the loan for seven years. After the 7th year, the loan is forgiven and the company is awarded the principal and equity of the loan.

YUMA OPPORTUNITY ZONES 

Users within designated census tracts can benefit from no capital gains tax along with tax breaks on untaxed capital gains rolled into a zone.

FOREIGN TRADE ZONE #219

Along with duty and tariff elimination or reduction, Arizona offers up to an 80% reduction in state real and personal property taxes by operating in a federally qualified Foreign Trade Zone. The reduction is good for the entire time that a company operates in the FTZ.

 

State Incentives

QUALIFIED FACILITIES PROGRAM

Offers a refundable income credit equal to the lesser of 10% of the qualifying capital investment, or $20,000 per net new job at the facility.

INCOME TAX CREDITS UP TO $9,000 FOR EACH QUALIFYING NEW JOB

The Quality Jobs Tax Credit replaces Arizona's expiring Enterprise Zone Program. It provides per­employee tax credits of $3,000 per new year for up to three years. Credits may be carried forward for five years. Eligibility qualifications are different from rural to metro areas and focus on capital investment and net new job creation (5 new jobs rural/25 new jobs metro).

$1.5 MILLION IN REIMBURSABLE GRANTS TO TRAIN EMPLOYEES

Arizona provides reimbursable grants to employers that implement job-specific training plans for new jobs or for training plans that increase the skill level of current employees. Award amounts range from $2,000 to $8,000 per position depending upon company size and location.

NO SALES TAX ON MANUFACTURING EQUIPMENT

Manufacturing equipment purchased withing the state of Arizona qualifies for a sales tax waiver.

UTILITY SALES TAX WAIVER

Manufacturers and processors that utilize more than 50% of electricity or gas to produce their commodity can qualify for a sales tax waiver on their utility bills.

5 YEAR ACCELERATED DEPRECIATION SCHEDULES

Five-year accelerated depreciation schedules have been increased to help companies recover their investments even faster.

TAX REDUCTIONS BY INVESTING IN RENEWABLE ENERGY

Companies engaged in solar, wind, geothermal and other renewable energy industries may obtain up to a 10% refundable income tax and up to a 75% reduction on real and personal property taxes.

R&D TAX CREDITS

The Research and Development Tax Credit (R6D) is a tax credit available to businesses of all sizes that engage in research and development activities conducted at a state university and funded by the company. Companies can claim a refund up to $100,000 in a single tax year.

  


For more information about each program, visit Arizona Commerce Authority