Qualified Facility Tax Credit: Supporting Major Capital Investment and High-Quality Job Creation in Tempe
A state-enabled incentive designed to attract headquarters and manufacturing facilities to Arizona.
The Qualified Facility Tax Credit (A.R.S. § 41-1512) is an incentive authorized by the State of Arizona to promote the location and expansion of large-scale headquarters and manufacturing facilities, including manufacturing-related research and development operations. The program is designed to encourage substantial capital investment that generates high-quality employment opportunities and strengthens Arizona’s position as a center for corporate headquarters, advanced manufacturing, and commercial innovation.
Administered by the Arizona Commerce Authority (ACA), the program provides refundable income tax credits to eligible companies that locate or expand a qualified facility within the state. The ACA may authorize up to $125 million in Qualified Facility Tax Credits per calendar year through December 2030. Credits are allocated on a first-come, first-serve basis, based on a priority placement number at the time of pre-approval.
Tax Credit Structure and Benefits
Subject to eligibility requirements and program changes confirmed by the Arizona Commerce Authority, the Qualified Facility Tax Credit may provide a refundable income tax credit equal to the lesser of:
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10% of the qualifying capital investment; or
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$20,000 per net new job at the facility if the total qualifying investment is less than $2,000,000,000, or $30,000 per net new full-time employment position associated with the facility if the total qualifying investment is more than $2,000,000,000; or
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$30,000,000 per taxpayer per year
This structure allows qualifying companies to offset a significant portion of project costs while aligning incentives with job creation and long-term investment commitments.
Think Tempe for your Qualified Facility
Tempe is well-positioned to support headquarters and advanced manufacturing projects that may qualify for this incentive. With access to a highly educated workforce, proximity to major transportation corridors, and a strong innovation ecosystem, Tempe offers an environment where large-scale corporate and industrial investments can thrive.
Companies exploring expansion or relocation opportunities are encouraged to evaluate how the Qualified Facility Tax Credit may align with their broader investment and workforce strategies. For more detailed eligibility criteria, current credit availability, and application requirements, click the Tempe360 logo below to request assistance with your business needs.