Who wants to work in the sweltering heat of Arizona?
It seems not many people, nor businesses, were too keen on setting up operations in The Grand Canyon State. However, some may find their opinion of the Southwestern state changing significantly after lawmakers have introduced and approved two pieces of legislation aimed at driving business growth in Arizona through a round of new business tax incentives.
Credits extended to startup investors, job creators
Recently, an Arizona House of Representatives committee gave initial approval to new legislation that supporters say would greatly improve the state's competitive standing among businesses by providing valuable tax breaks, The Associated Press reported. Of the two bills, one would reward companies for investing in tech startups, while the other would help out organizations that expand and add jobs, as well as assist the self-employed.
The first bill, approved by the House's Commerce Committee, would introduce a tax credit for insurance firms that invest in a high-tech fund maintained by the Arizona Commerce Authority. The bill, sponsored by Republican House Speaker Andy Tobin, would provide a tax credit against insurer premium taxes of up to $10 million in the budget year beginning July 1. The legislation would also provide $20 million over the next two years and would allow insurance companies to keep their unused credits for 15 years if they cannot use credits during the year it is earned.
The Commerce Authority would use the fund to help high-tech startups expand or relocate within the state. The AP reported Arizona would recover the first $50 million in credits by way of the profits earned through investments.
The second piece of legislation OK'd by the committee would lower property tax rates for companies that grow their operations and create new jobs. The AP said the exact terms and value of the tax break is not publicly known yet. The bill would also create a 2 percent tax deduction for self-employed entrepreneurs in the state on their first $113,700 in income.
"We want to send a message to business and entrepreneurs that Arizona is the place to be," Tom Forese, committee chair, told The AP.
Across the nation, businesses may be eligible for tax credits and other incentives, but cannot take advantage of them because they aren't aware. Consulting with an HR service provider would ensure any such firm knows of every applicable cost-saving avenue through tax breaks.