AZ HB2939

Adds a new tier for calculating qualified facility income tax credits for large investments of $2 billion or more located in rural areas, allowing $250,000 per net new full-time employment position (compared to $300,000 for non-rural locations with similar investment levels).

Defines "rural location" as within tribal lands, cities/towns with populations under 50,000, or counties with populations under 800,000.

Maintains existing credit calculation structure: 10% of the lesser of total qualifying investment or the employment-based calculation, with a maximum of $30,000,000 per taxpayer and $125,000,000 total credits per calendar year.

Applies to taxable years beginning from and after December 31, 2026.

Credits must be claimed in five equal annual installments over five consecutive taxable years, with preapproval required from the Arizona Commerce Authority.