What Tax Credits and Business Incentives Are Available in Arizona?

Arizona has become one of the nation’s top destinations for business expansion—attracting global companies in technology, manufacturing, logistics, healthcare, and retail. One major reason is the state’s competitive package of tax credits and business programs designed to promote growth, innovation, and job creation.

At Keyser, a global, AI-enabled, and conflict-free occupier advisory firm, we help clients evaluate and secure Arizona incentives that align with long-term real estate and operational goals across office, warehouse, manufacturing, medical, and retail projects.

Why Arizona Incentives Matter

When companies evaluate where to locate or expand, incentives can make a significant financial difference. These programs reduce startup and operating costs, often influencing whether a project moves forward or scales up.

Arizona incentives are particularly attractive because they’re transparent, performance-based, and tailored to industries that support innovation, advanced manufacturing, and sustainable growth. The right combination of credits, grants, and abatements can offset millions in costs over a project’s lifespan.

Key Arizona Incentive Programs

Here are some of the most impactful programs available to qualifying businesses:

1. Quality Jobs Tax Credit
   Provides income tax credits to employers who create new high-quality jobs and make capital investments in Arizona.
2. Qualified Facility Tax Credit
   Offers substantial tax relief for companies—especially in manufacturing and warehousesectors—that invest in new or expanded facilities.
3. Foreign Trade Zone (FTZ) Benefits
   Reduces property taxes by up to 72.9% for approved manufacturing or logistics users operating within an FTZ.
4. Job Training Grant Programs
   Administered by the Arizona Commerce Authority (ACA), these programs reimburse employers for a portion of workforce training costs.
5. Renewable Energy and Infrastructure Incentives
   Available to companies investing in energy-efficient technologies or facilities that advance sustainability goals.
6. Healthcare and Life Sciences Support
   Certain programs specifically target medical, biotech, and life sciences facilities, offering grants for research, equipment, and expansion.

These Arizona incentives often combine state, regional, and local benefits—each requiring distinct applications and compliance tracking.

AI-Enabled Incentive Identification

Keyser is AI-enabled, using artificial intelligence and market analytics to evaluate eligibility for Arizona incentives quickly and accurately. The firm’s technology scans multiple databases and cross-references key project metrics—such as job creation, investment size, and location—to identify every potential program for which a client qualifies.

By leveraging AI, Keyser can estimate the total financial value of incentive packages and project their impact on total occupancy costs. This empowers clients to make informed site selection decisions before committing to a location.

Global Reach and Local Expertise

With over 600 professionals and international partners worldwide, Keyser provides both global scale and deep local expertise. The firm’s Arizona-based advisors work closely with the Arizona Commerce Authority, city economic development offices, and regional utilities to structure customized incentive packages.

Keyser’s experience spans industries—from office headquarters relocations to manufacturing facilities, medical campuses, warehouse distribution centers, and retail expansions—ensuring each client receives comprehensive support throughout the incentive process.

Conflict-Free Representation

Unlike traditional brokerages, Keyser represents only tenants and owner-occupiers—never landlords. This conflict-free approach ensures that every incentive negotiation focuses exclusively on the client’s best interests.

From application to compliance reporting, Keyser’s advisors guide clients through every stage, ensuring maximum benefit and alignment with business goals.

Turning Incentives Into Strategic Advantage

Incentives aren’t just about savings—they’re about strategy. By integrating AI-driven analytics, global insight, and conflict-free advocacy, Keyser helps clients unlock Arizona incentives that fuel growth, innovation, and profitability.

Whether launching a manufacturing plant, expanding a medical network, or relocating office operations, Keyser ensures every incentive opportunity is captured and optimized for long-term success.

Frequently Asked Questions:

Q: What are some of the major tax-credit programs available to businesses operating in Arizona?

A: Arizona offers several noteworthy programs including: the Qualified Facility Tax Credit (for manufacturing, HQ or R&D facilities), the Quality Jobs Tax Credit (for job creation with wage minimums), and the Research & Development Tax Credit (for incremental R&D investment in AZ).

Q: What incentives beyond tax credits should business leaders know about when considering Arizona?

A: Beyond tax credits, incentives include sales-tax exemptions (for manufacturing equipment or data-centers), job-training grants, and discretionary deal-closing funds such as the Arizona Competes Fund.

Q: How can a business determine if it qualifies for Arizona’s tax-credit programs?

A: Key qualification criteria generally include a minimum capital investment and job creation threshold, paying certain wage levels, dedicating a majority of operations to qualified activities, and in some programs maintaining a portion of sales outside Arizona. Pre-approval is commonly required before claiming the credit.