HB2492 Summary

• Establishes a new reinvestment program allowing taxpayers with unused income tax credits for increased research activities to reinvest up to $2.5 million annually in capital expenditures for enhancement projects in Arizona, with a $10 million annual program cap and first-come, first-served approval process.

• Modifies the Arizona Quality Jobs Incentive program by removing the July 2017 deadline restriction, expanding wage thresholds for job creation requirements, and adding new tiers with reduced capital investment thresholds (as low as $500,000) for higher-wage positions in both urban and rural locations.

• Increases income tax credit rates for qualified research activities from 20% to 24% on the first $2.5 million of excess expenses and from 11% to 15% on amounts exceeding $2.5 million.

• Adds new definitions for "urban location" and "rural location" to the jobs incentive program, distinguishing between metropolitan areas (population 50,000+) and smaller communities or tribal lands.

• Provides that large employers (2,000+ employees in Arizona) may reinvest unused research tax credits for capital enhancement projects during 2017-2025, subject to approval by the Arizona Commerce Authority.