|
|
ARIZONA HOUSE OF REPRESENTATIVES57th Legislature, 2nd Regular Session |
House: RED DP 7-0-0-0 |
HB 2939: qualified facilities; tax credit; amount
Sponsor: Representative Martinez, LD 16
Caucus & COW
Overview
Includes an additional amount of the Qualified Facility tax credit (QFTC) that a taxpayer may receive for investments in a qualified facility.
History
The QFTC promotes the location and expansion of headquarters or manufacturing facilities, including manufacturing-related research and development in Arizona. The program provides a refundable income tax credit to taxpayers who are expanding or locating a Qualified Facility in Arizona.
To qualify for the QFTC, a taxpayer must invest in a new qualified facility in Arizona or expand an existing qualified facility in Arizona and produce new full-time employment positions where the job duties are performed at the location of the qualifying investment. Only capital investments in a qualified facility that are made within 36 months before submitting an application for preapproval are included in the computation of the Credit.
The QFTC must be preapproved by the ACA and is equal to 10% of the lesser of: 1) the amount the applicant has projected in total qualifying investment in the qualified facility; or 2) either $200,000 for each net new full-time employment position projected by the applicant that has job duties associated with a qualified facility, if the total qualifying investment is less than $2,000,000,000; or $300,000 for each net new full-time employment position projected by the applicant that has job duties associated with a qualified facility, if the total qualifying investment is $2,000,000,000 or more. The QFTC must be claimed in five equal annual installments in five consecutive taxable years.
Statute defines rural location as a location that is within the boundaries of tribal lands or a city or town with a population of less than 50,000 persons or a county with a population of less than 800,000 persons (A.R.S §§ 41-1512, 43-1083.03, 43-1164.04).
Provisions
1. Adds an additional QFTC amount that a taxpayer can qualify for based on the amount of the total qualifying investment, to be 10% of $250,000 for each net new full-time employment position projected by the applicant that has job duties associated with a qualified facility that is in a rural location, if the total qualifying investment is $2,000,000,000 or more. (Sec. 1, 2, 3)
2. Applies the new credit amount to taxable years beginning January 1, 2027. (Sec. 4)
3.
4.
5. ---------- DOCUMENT FOOTER ---------
6. Initials PB HB 2939
7. 2/6/2026 Page 0 Caucus & COW
8.
9. ---------- DOCUMENT FOOTER ---------