The Renewable Energy Tax Incentives Program was established by the Arizona Legislature in 2009 to promote the renewable energy industry in the state. The goal of the new program is to encourage business investment that will produce high quality employment opportunities and enhance Arizona’s position as a center for production and use of renewable energy products. The program accomplishes this goal by providing tax incentives to companies in the solar, wind, geothermal and other renewable energy industries who are expanding or locating in Arizona. The program offers two benefits; up to a 10% refundable income tax credit and up to a 75% reduction on real and personal property taxes.
Basic Eligibility Requirements
A company may be eligible for tax incentives, if it:
- Is primarily (more than 50%) engaged in the manufacturing of or headquarters for producing systems and components that are used or useful in manufacturing renewable energy equipment
- Is expanding or locating either a renewable energy manufacturing or headquarters facility in Arizona
- Creates fulltime employment positions of which at least 51% are paid at least 125% of the state’s annual median wage (currently $30,940)
- Offers to pay at least 80% of the health insurance costs for all net new fulltime employment positions
- Spends at least $250,000 in qualifying investments during each twelve-month period