Business Incentives

The City of San Luis provides a framework for the City financial investment towards the attraction and expansion of targeted industries and commercial developments within the City of San Luis. The San Luis Incentive Policy will stimulate the local economy by providing employment opportunities, expand the tax base required to provide essential public services, diversified the local economy and expand the economic base of the City. The incentive policy contains specific criteria and procedures necessary to effectively and fairly administer economic development incentives and financial investment. Any business interested in requesting incentives must submit a Business Incentive Program Application to the office of Economic Development.

The City of San Luis works with our local and state partners in offering incentive packages. The list of potential incentives to be provided is as follow: (links to where to obtain more information will be provided)

Opportunity Zones

Opportunity Zones provide a tax incentive for investors to re-invest their unrealized capital gains into dedicated opportunity funds.

Workforce 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.

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.

New Market Tax Credits

Below market interest loans guaranteed by 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.

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 per-employee tax credits of $3,000 per year for up to three years. Credits may be carried forward for five years. Eligibility qualifications are different from rural and metro areas and focus on capital investment and net new job creation (5 new jobs – rural/25 new jobs metro).

30% Reduction in Arizona’s Corporate Income Tax Rate

Corporate income tax rates in Arizona will be decreasing from 6.97% down to 4.9% from 2014 to 2017. This new 30% lower rate makes Arizona’s rate one of the five lowest in the country.

100% Electable Sales Factor for Multi-State Corporations

New legislation increases the electable sales factor for multi-state corporations from 80 % to 100% between FY2014 and FY2017. This provides businesses with the opportunity to reduce their tax burden.

Qualified Facilities Program

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

Lower Commercial Property Assessment Ratio—just 18%

The Arizona commercial property assessment ratio is being reduced by 10% down to 18% by 2017. This continues a 10-year trend of reducing property taxes in Arizona.

Accelerated Depreciation Schedules

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

Research & Development

Refundable income tax credits are available for investments in research and development activities conducted in Arizona. The tax credit starts at 22% of the qualified R&D expenses for amounts in excess of expenditures from the previous year. Recent legislation enhances the tax credit amount up to 34% if increased R&D expenditures are made in conjunction with an Arizona public university.

The Quality Jobs through Renewable Industries

This program is designed to stimulate new investments in manufacturing and headquarter operations of renewable energy companies, including solar, wind, biofuel, geothermal and other renewable technologies. It is designed to generate net new revenue to the state. The benefits include:

Transferable corporate income tax credit.
Real and personal property tax reduction.

Commercial/Industrial Solar Energy Tax Program

This program subsidizes the initial cost of solar energy devices. The tax credit is equal to 10% of the installed cost of the solar energy device not to exceed $25,000 in credits for one building in a single tax year and $50,000 total credits per business per tax year. Tax credits can be used to offset Arizona income tax liability; any unused credit amounts can be carried forward for a five-year period.

Energy Equipment Property Tax Exemption

Arizona’s property tax can be used for solar energy devices and any other device or system designed for the production of solar energy for on-site consumption. It can also be used to include other renewable energy technologies, as well as combined heat and power systems, and energy efficient building components.

Property Tax Assessment for Renewable Energy Property

Renewable energy equipment owned by utilities and other entities operating in Arizona is assessed at 20% of its depreciated cost for the purpose of determining property tax.

Solar and Wind Equipment Sales Tax Exemption

Arizona provides a sales tax exemption for the retail sale of solar energy devices and for installation of solar energy devices by contractors.