Incentives

City of Maricopa Incentives Brochure |

This comprehensive document outlines the city of Maricopa and state of Arizona incentives.

State Incentives:

Arizona offers a wide variety of economic incentives to encourage high-wage job growth and capital investment. The Arizona Commerce Authority is the central source of information for Arizona's business incentives, which can be found online at AzCommerce.com.

New State Incentive Information on Research & Development Tax Credit Program:

The Research and Development (R&D) Tax Credit program provides an Arizona income tax credit for increased research and development activities conducted in this state, including research conducted at a state university and funded by the company. The goal of the program is to encourage Arizona businesses to continue investing in research and development activities. The R&D program was modified by the Arizona legislature during 2009. The 2010 R&D tax credit is equal to 22% of the first $2.5 million in qualifying expenses plus 13% of the qualifying expenses in excess of $2.5 million. The 2011 through 2017 R&D tax credit will be equal to 24% of the first $2.5 million in qualifying expenses plus 15% of the qualifying expenses in excess of $2.5 million. For 2018 and thereafter, the tax credit rates will return to 20% of the first $2.5 million in qualifying expenses plus 11% of the qualifying expenses in excess of $2.5 million.

Local Incentives:

Green Business Incentive Program
This is a voluntary incentive program designed to encourage businesses to take an active part in reducing greenhouse gases and serve as a model for sustainable business in the city of Maricopa. Incentives and assistance will be provided to encourage businesses to implement proactive actions that protect, preserve and improve the environment. Meeting the criteria of this program will certify a business as a Green Business. For more information, visit the Green Business Program webpage.

Enterprise Zone
The city of Maricopa is located in an Enterprise Zone, which provides Property Tax Reduction Income or Premium Tax Credits for qualified manufacturers and commercial printers.

Download

a summary of Zone benefits and application processes. Details on the Pinal County Enterprise Zone along with a map can be found online at PinalCountyAz.gov. For information about the Enterprise Zone Program requirements please visit AzCommerce.com. To qualify for Enterprise Zone tax credits, an employer must pay at least an amount equal to the "wage offer by county", as computed annually by the Research Administration unit of the Arizona Department of Commerce, and jobs that qualify for tax credits must be full-time and permanent. The employer must also offer to pay at least 50 percent of health insurance costs for the employee. The current minimum wage offer for Pinal County through December 31, 2011, is $9.66.

Project Fast-Tracking
The city of Maricopa, through Council Resolution 07-62, passed unanimously in 2007, has implemented a Fast Track Permitting Process for qualified new, expanding or relocating businesses. Recognizing the need to offer a business-friendly environment which allows businesses to relocate and expand in the community rapidly and efficiently, the City is committed to streamlining and simplifying, where possible, its governmental permitting processes. For more information, contact the Economic Development Department for a program details and application materials or

download

the brochure.

Inspection Assistance
For projects deemed beneficial to the residents of Maricopa, the City may assign a dedicated commercial building inspector to your project during the entire course of the construction process.

Industrial Development Authority (IDA)
The IDA of the city of Maricopa encourages economic growth and job creation by making low-interest loans available to qualified projects through the issuance of tax-exempt bonds. Financing must meet state bond law requirements, and all projects are reviewed to ensure that financing candidates represent projects that will help to further the community's vision for sustainability. For IDA policies, procedures, and application guidelines contact visit the IDA page online.

Redevelopment District
In 2008, the city of Maricopa established a redevelopment district in the city of Maricopa. A Redevelopment District requires a plan that lays out broad goals and guidelines for the area to be revitalized. State statutes provide an outline of material to be included in the plan. In some redevelopment districts, the GPLET (see below) can be abated for the first eight years after the certificate of occupancy. For more information, including district boundaries and the approved Plan, visit the Redevelopment District Plan section of this Website.

Development Agreements
Development agreements generally give some type of benefit to the developer, such as a repayment for public infrastructure improvements through sales tax rebates. Arizona municipalities are restricted to providing only tax incentives consisting of reimbursements for public infrastructure and may not exceed or otherwise be disproportionate to the actual cost incurred. Maricopa has in the past entered into development agreements, and is willing to explore this option with any business bringing a high level of economic benefit to the community.

Government Property Lease Excise Tax Program
This program has been established by the state of Arizona and is available to businesses that lease parcels from a municipality rather than own them outright. All real property tax has been waived and replaced with an excise tax that is an established rate per square foot and based upon the type of use. The rate is reduced every ten years by 20% until it reaches the 51st year, when the tax drops to zero. In some redevelopment districts, the excise tax can be abated for the first eight years after the certificate of occupancy. If a municipality is a property owner, this creates a huge incentive for a company to occupy the facility, or allows them the cash flow to perform improvements. Any business or entity occupying a facility on property owned by the municipality is eligible to participate in the program (the building may be owned by the private entity, but land on which it sits must be leased from a city). The program typically is used to spur development and redevelopment in downtown areas.

Solar Rebate Program

The city of Maricopa's new solar rebate program is designed to encourage the installation of photovoltaic (PV) systems on residential or commercial buildings. The City will provide a monetary rebate incentive of 60 cents per DC watt installed, up to $3,000 per household or commercial building.

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