As a key employment center, Goodyear and the state of Arizona offer great business incentives.
Businesses located within Goodyear’s redevelopment area, a 7-square miles in the heart of Goodyear, can take advantage of a series of real property tax abatements and reductions offered by the State of Arizona.
Goodyear’s Enhanced Customer Experience
Goodyear provides faster turnaround times and the customer friendly experience that Goodyear is known for. All of the Development Services divisions work together as one team to guide you through the process of your project every step of the way. We know that your time is valuable and we are here to help. We offer great amenities such as “building safety permits by e-mail”, “engineering electronic plan reviews” and “tracking permits online”. No more driving down to the city or waiting in line thanks to these great programs! Likewise, we also offer “over the counter” business permits. The less time you spend with us, the more time you have to focus on your business or project!
Military Reuse Zone (MRZ) Incentives
This designated area was established by the state legislature in 1992 to lessen the impact of military base closures. In December 2002, the former U.S. Naval Air Facility in Goodyear, now known as Phoenix-Goodyear Airport, was designated as an MRZ. This zone offers various incentives including:
- Property Tax Reclassification - 74% Savings: Aerospace & Aviation companies are eligible for an assessment ratio of 5 percent on all personal and real property located in the MRZ, for both primary and secondary tax purposes. The reclassification runs for five years as long as the Aerospace & Aviation company remains in the MRZ, maintains its certification, submits an annual report to Commerce and annually requests the County Assessor to reclassify the property. At the end of the reclassification period, the property reverts to the standard assessment ratio. Any addition or improvement to property qualifies separately for reclassification under the program.
- New Job Income and Premium Tax Credits: Aerospace & Aviation companies or insurers must show a net increase in either dislocated or non-dislocated employees. To calculate the net increase, compare the average number of employees in the current year with the average number of employees in the previous year. For a dislocated employee, the credits may total $10,000 over five years; for a non-dislocated employee, $7,500 over five years. If the tax credits exceed the income or premium liability, any unused amount may be carried forward for up to five taxable years, provided the business remains in the MRZ. Income/Premium tax credits may be claimed in every year an increase is shown not to exceed five consecutive years, as long as the Aerospace & Aviation Company or insurer maintains its certification and submits an annual report to Commerce. A company that claims enterprise zone or healthy forest tax credits may not claim credit with respect to the same employee under the MRZ program.
- Transaction Privilege Tax (TPT) Exemption: Aerospace & Aviation companies and Airport Authorities are offered an exemption from the TPT on construction contracts performed at an MRZ. The exemption applies only to state and county taxes; cities impose their own taxes. A prime contractor must apply for a letter of qualification from the Arizona Department of Revenue prior to work beginning on the contract to receive the exemption. In addition, the Aerospace & Aviation company or airport authority must submit a completion report to Commerce to maintain eligibility.
Foreign Trade Zone
This zone allows Goodyear’s businesses to save money by delaying, reducing or eliminating duty taxes on foreign merchandise entering the Foreign Trade Zone.
Quality Jobs Tax Credit Program
The program provides tax credits to employers creating a minimum number of net new quality jobs and making a minimum capital investment in Arizona. Job Training Grants Receive grants to reimburse you up to 75% of eligible training expenses for creating new jobs.
Qualified Facility Tax Credit
Eligible companies that expand or establish manufacturing or manufacturing related facilities receive a tax credit.
Sales Tax Exemption for Machinery and Equipment
A sales tax exemption for machinery and equipment used in manufacturing, producing/transmitting electrical power or research and development.
Computer Data Center Tax Exemptions
Create or operate a computer data center and Arizona will provide tax exemptions for elated equipment purchases at the state, county, and local levels.
Research & Development Tax Credit
Companies that increase research and development activities may be given a tax credit.
Renewable Energy Tax Credits
Wind, solar, geothermal and other renewable energy business investments are encouraged with income tax credits and reductions on real and personal property taxes.
Commercial/Industrial Solar Energy Income Tax Credit
Provides a state income tax credit for the installation of solar energy devices in facilities that operate in Arizona.
Small Business Innovation Research & Technology Transfer Grants
Encourages R&D innovation through grant incentives as well as grants for public/private sector R&D innovation partnerships.
Arizona Competitive Package
Encourages new capital investments through accelerated depreciation schedules by reducing property taxes.
Government Property Lease Excise Tax
Established as a redevelopment tool to initiate development by reducing a project's operating costs by replacing the real property tax with an excise tax. Under the state statute an excise tax is established for the building type of use and is calculated on the gross square footage of building. The use of the excise tax cannot continue for more than twenty five years and requires that the land and improvements conveyed to a government entity and leased back for private use. The excise tax rate can be abated for the first eight years after a certificate of occupancy on the building is issued if the property is located within a Central Business District and a Redevelopment Area.
For a complete list of business incentives, eligibility, and legal requirements or to apply for programs please visit the Arizona Commerce Authority.
For more information also please call (623) 882-7900 and be sure to visit Goodyear's Economic Development website.