- Job Training
- Quality Jobs
- Qualified Facility
- Computer Data Center Program
- Research & Development
- Foreign Trade Zone
- Military Reuse Zone
- Angel Investment
- Renewable Energy Tax Incentive
- Commercial/Industrial Solar
- Additional Depreciation
- Healthy Forest
- Lease Excise
- Sales Tax Exemptions for Manufacturing
- Work Opportunity
- Renewable Energy Production Tax Credit
NOTE: New eligibility requirements will become effective January 1, 2018, pursuant to S.B. 1416. Please click here for further information.
The primary goal of the Quality Jobs tax credit is to encourage business investment and the creation of high-quality employment opportunities in the state. Quality Jobs accomplishes this goal by providing tax credits to employers creating a minimum number of net new quality jobs and making a minimum capital investment in Arizona.
The Quality Jobs tax credit offers up to $9,000 of Arizona income or premium tax credits spread over a three-year period for each net new quality job ($3,000 per year). The program encourages continuous employment; therefore, the tax credit is equal to:
Years of Employment
Tax Credit Amount
$3,000 per net new qualified employment position created during the taxable year or partial year of employment.
$3,000 per qualified employment position, employed for the second full taxable year of continuous employment.
$3,000 per qualified employment position, employed for the third full taxable year of continuous employment.
If the allowable tax credit exceeds the income or premium tax liability, any unused amount may be carried forward for up to five consecutive taxable years.
Any company making the minimum capital investment in Arizona and creating the minimum net new quality jobs can apply. Eligibility qualifications are different for rural and metro areas and are described in the chart below. A taxpayer is eligible to claim Program credits once within a 12-month period, (i) makes the requisite minimum investment and (ii) creates the requisite minimum number of new quality jobs.
Minimum Capital Investment
Minimum Number of Net New Jobs (QEP's) Added
Percent of County Median Wage
|For Metro Locations:|
|For Rural Locations:|
Urban Area – A location that is within the exterior boundaries of a city or town that has a population of 50,000 or more, and that is located in a county that has a population of 800,000 or more.
Rural Area – A location that is within the boundaries of tribal lands or a city or town with a population of less than 50,000, or a county with a population of less than 800,000.
Pre-Approval for Tax Credits
A taxpayer must apply for Pre-Approval by submitting an electronic Request for Pre-Approval. To access the current forms, please click here. Tax year 2011 and 2012 forms are located below.
If the Request for Pre-Approval is qualified, Commerce will issue a written notification of pre-approval to the company that identifies the amount of tax credits being reserved for the taxpayer.
Applying for Tax Credits
A taxpayer must also submit an electronic Application for Quality Jobs Tax Credits to Commerce. To access the current forms, please click here. Tax year 2011 and 2012 forms are located below.
If the applicant meets all eligibility requirements, Commerce will issue a Tax Credit Allocation Letter to the taxpayer identifying the credit the taxpayer may be able to claim with the Arizona Department of Revenue (Revenue) or the Arizona Department of Insurance (Insurance), as applicable.