11.25.14 |
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Arizona’s Quality Jobs Tax Credit Program Offers Companies Incentives for New Hires

ArizonaBusinesses have a unique opportunity to capture tax credits for following statewide guidelines and regulations, but many companies are failing to capitalize on credits for which they are eligible and miss out on money they may be entitled to receive. One example is Arizona’s Quality Jobs Tax Credit Program, which was implemented to incentivize businesses to hire workers in Arizona to help boost the state’s job market.

According to the Arizona Commerce Authority, companies can qualify for a tax credit of up to $3,000 per new qualified employee working at an Arizona-based company for each year they remain employed up to three years. However, in order to qualify for this tax credit, companies must also create a minimum number of net new quality jobs within Arizona and make a minimum capital investment, which differs from county to county.

Counties with 800,000 or more residents fall under the metro qualifications. Companies within these metro counties must create a minimum number of 25 positions per year in order to qualify for these credits, while businesses within rural counties of fewer than 800,000 people are required to meet a minimum requirement of five new positions.

These credits are limited each year to the first 10,000 jobs claimed on a first-come, first-served basis. In order to qualify, companies must apply for pre-approval and then again apply for the Quality Jobs Tax Credit to the Arizona Commerce Authority. Once the application is approved, Commerce issues a Tax Allocation Letter, which applicants can then bring to the Arizona Department of Revenue or the Arizona Department of Insurance.

This type of employment tax credit program can be beneficial for both Arizona’s economy and its businesses, and it’s important for employers to have a system that is capable of capturing available tax credit options like these. With credits available for only 10,000 jobs in the entire state of Arizona, these credits can be claimed very quickly, and an efficient tax credit program can help optimize the application process.

Learn more about how the ADP SmartCompliance® Tax Credits module can assist with capturing tax credits like these for which you may be eligible, or click here to learn more about Arizona’s Quality Jobs Tax Credit Program.

 

 

The information provided in this blog post is for informational purposes only and not for the purpose of providing accounting, legal, or tax advice. The information and services ADP provides should not be deemed a substitute for the advice of any such professional. Such information is by nature subject to revision and may not be the most current information available.


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