SB 1416 Summary

• Extends Arizona quality jobs incentives program eligibility through July 2025 (previously July 2017) and adds four new wage-based qualification tiers requiring 25+ net new jobs at 100-200% of county median wage with reduced capital investment requirements.

• Modifies manufacturing facility infrastructure improvement program by reducing initial capital investment threshold from 25% to 10% and establishing written agreement requirements between manufacturing facilities and cities/towns before certification submission.

• Increases research tax credit rates for qualified research expenses from 20% to 24% for taxable years 2018-2021, and increases additional credit rate on amounts exceeding $2.5 million from 11% to 15% for the same period.

• Allows taxpayers with preapproved qualified facility credits before January 1, 2023 to claim all five annual installments notwithstanding any subsequent repeal of the credit program.

• Makes technical amendments to depreciation schedules for class six personal property acquired after 2017 and clarifies definitions of urban and rural locations for incentive programs.