With a favorable tax environment, Arizona relies on a combination of taxes assessed on income, sales, and property valuations to meet expenditures. For nine consecutive years, Arizona has reduced taxes and passed legislation favorable to business.
Some Notable Aspects of Arizona’s Tax Code:
Arizona’s corporate income tax rate is 6.968% of taxable income, or $50, whichever is greater. In 2001, the state’s corporate income tax rate was reduced from 8.0%. There was another decrease in 2002, which brought the tax to the current rate. There is no local corporate income tax.
Currently, there is not a formal local incentive program that exists for the City of Eloy but each community maintains certain capabilities for each project. These capabilities could reflect key requirements needed per project. The City of Casa Grande has enacted an Economic Development Incentive Ordinance. Should the cities choose to offer incentives to new or existing companies, the potential incentives would typically be based upon the specific project criteria and needs. Since each project is different in scope, the potential incentives would be on a case by case basis and established on the project’s particular needs and specifications including investment levels, employment levels, average wages and the benefits package offered. As a project moves forward in the location feasibility study process, the Pinal Alliance for Economic Growth and communities would be pleased to discuss this item in more depth.
New Market Tax Credit: