Start Up: Incentives

Healthy Forest

The primary goal of the Healthy Forest Enterprise incentive is to promote forest health in Arizona. This is achieved by providing incentives for certified businesses that are primarily engaged in harvesting, processing or transporting of qualifying forest products:

    • Use Fuel Tax Reduction
    • Transaction Privilege Tax Exemption (TPT Exemption) on:
      • Purchased qualifying equipment
      • Leased or rented qualifying equipment
      • Construction contracts
      • Equipment repair parts
      • Motor vehicle fuel and use fuel
    • Use Tax Exemption on:
      • qualifying equipment purchased out-of-state
      • Equipment repair parts
      • Motor vehicle fuel and use fuel
    • Property Tax Reduction
    • Employment Income Tax Credit – Arizona income tax credit earned over a three-year period for each net new job created, totaling up to $3,000 per employee
    • Workforce Training Income Tax Credit – Arizona income tax credit earned over a three-year period for each new employee trained, totaling up to $9,000 per employee

For more detailed information about program incentives please read below or direct your questions to the Program Manager.

ELIGIBLE APPLICANTS

Eligible applicants include: a harvester, processor or transporter that:

  1. Is primarily (more than 50 percent) engaged in a qualifying project,
  2. Employs at least one full-time employee, and
  3. Enters into a Memorandum of Understanding (MOU) with Commerce.

 

APPLICATION PROCESS

Pursuant to A.R.S. §41-1504(C)(1), the Arizona Commerce Authority (ACA) is authorized to begin assessing and collecting fees for processing applications and administering tax incentive programs. Download the Incentive Program Fee Policy effective July 1, 2012.

Please note: each incentive has different requirements. To ensure eligibility for each incentive please read the guidelines.

To become a certified business and receive HF program incentives an eligible business must follow the process below:

    • Apply for program incentives by completing an Application Form and entering into a MOU with Commerce. To apply electronically for program incentives, click here.
    • Within 60 days of receipt of a complete application, Commerce will notify the business of approval or denial.
    • If the business is approved, a Letter of Certification will be issued to the eligible business, explaining the next steps to obtain the program incentives.
    • The certified business must then submit a copy of the Letter of Certification to the Arizona Department of Revenue (Revenue) for approval before using the certification to obtain program incentives. To obtain approval, Revenue is asking that the business submit a Tax Clearance Application Form with a copy of the Letter of Certification.
    • Within 60 days of receipt of the Letter of Certification, Revenue will notify the business of approval or denial.
    • If the Letter of Certification is approved, incentives offered under the Healthy Forest Enterprise Incentives Program can be claimed.

RECERTIFICATION & REPORTING PROCESS

    • On or by March 1st of each year, the business must submit an Annual Report to Commerce to maintain eligibility. To report electronically for program incentives, click here.
    • Within 30 days of expiration of the current certification, a business must submit a Recertification Form to maintain eligibility. To apply electronically for program incentives, click here.

EMAIL UPDATES

To receive updates about the program as they become available, please click here to add your name to the stakeholders list. Please be sure to identify the Healthy Forest Enterprise Incentive Program as the program for which you would like notification.