Arizona’s 2017 legislative session ended May 10th with a number of wins, including some very good news for the state’s economic development. The 53rd Arizona Legislative Session impacted statewide economic development in a multitude of ways, large and small.
While there were several individual wins including the funding of the Angel Investment Tax Credit (HB2191), one bill stood out. SB1416, referred to as “The Quality Jobs Bill.” The bill, which gives individual private-equity investors state credits on qualifying investments, was signed into law this spring.
The Arizona Association for Economic Development (AAED) believes this new legislation will help Arizona maintain its position as one of the nation’s leaders in job creation. In order to remain competitive, Arizona must stay competitive in its ability to attract, retain and grow businesses with quality jobs for our citizens, now and into the future. AAED believes that SB1416 will enhance Arizona’s manufacturing competitiveness moving forward.
SB 1416 highlights:
Quality Job Tax Credits through 2025
• Modifications made to Minimum Capital Investment/ Minimum Number of New Jobs/Percent of County Median Wage for factoring tax credit
• Different thresholds for job creation with urban having a minimum of 25 net new jobs and rural with five
Research & Development Tax Credit continues through 2021
• Current rates are set to decrease in 2018
Transaction Privilege Tax – Public Infrastructure
• Stipulation of no funds distribution until 10-percent of qualifying capital investment has been made by the manufacturing facility
Accelerated Depreciation for Class 6 Property
• Allows accelerated depreciation of personal property in a foreign trade zone or military reuse zone
Qualified Facilities Tax Credit
• Clarifies how a taxpayer can claim all five annual installments of the qualified Facilities Tax Credit that was preapproved by the Arizona Commerce Authority (ACA)
The winning team’s roster for economic development includes: the bill’s sponsor Rep. Jeff Weninger and Rep. Jill Norgaard, who delivered the final votes. This bill was presumed dead numerous times, but their dedication paid off and the bill found success on the final day of the session.
Our community partners, headed by Arizona Chamber of Commerce & Industry, Arizona Technology Council, Arizona Bioindustry Association and the ACA, provided excellent teamwork. AAED joined the ranks with a call for action that included outreach, letter writing and calling campaigns from economic developers and service providers around the state.
Economic development had a winning year in 2017 and is grateful for the economic development tools the state of Arizona has given us. The 470 statewide members of AAED, through our policy advocate the Dorn Policy Group, will be at the Capitol next year to support bills that enhance the economy of Arizona through responsible economic development.
Joyce Grossman, AZED Pro, is the executive director for the Arizona Association for Economic Development.