Economic Incentives & Tax Credits
High impact incentives for small businesses in Arizona
Arizona is an environment that encourages bold ideas and facilitates innovative solutions, and the state is perfectly positioned to lead in trends that are changing the way we live and conduct business. In fiscal year 2022, Arizona will simplify its income tax, reducing the top rate to 4.5% and implementing a flat income tax rate of 2.5% — the lowest flat tax in the nation. Arizona’s focus on business is simple: keep regulation low and taxes light. The state has bucked tax-hiking trends, providing a business climate that stimulates growth, investment in R&D and the development of new innovations.
Top tax incentive programs for small and medium-sized businesses in Arizona
Qualified Facility Tax Credit
The program offers a refundable tax credit to taxpayers who are expanding or locating a Qualified Facility in Arizona.
Arizona Quality Jobs Tax Credit
The program provides tax credits to employers creating a minimum number of net new qualifying jobs and making a minimum capital investment in Arizona.
Arizona Innovation Challenge (AIC)
The ACA has committed $3 million dollars annually to advance companies from startup status through to growth stages.
Arizona Research and Development
The program provides an Arizona income tax credit for increased research and development activities.
Arizona Foreign Trade Zone
Businesses located in a foreign trade zone or sub-zone are eligible for up to a 72.9 percent reduction in state real and personal property taxes.
Sales Tax Exemptions for Manufacturing
Machinery and equipment used directly in manufacturing or research and development are exempt from the state sales tax.
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Find the Tax Money You're Owed in Minutes
Subcity empowers small businesses, CPAs, and finance professionals to identify and apply for economic incentives and tax credits. Each year, over $100 billion is allocated for incentives across local, state, and federal programs in the U.S. Unfortunately, a significant portion of this money goes unclaimed or to large corporations with teams of tax attorneys and legal experts.
Subcity utilizes a comprehensive database of incentives to connect small businesses with the programs that were designed to help them create jobs, invest in their communities, and grow their business. Subcity charges a 10-20% fee for the programs they successfully secure, ensuring zero risk for clients as payment is contingent on results. Subcity is on a mission to democratize access to capital for America’s small businesses and has already delivered tens of millions of dollars in tax incentives for clients across the country.