Vote Smart's Synopsis:

Vote to pass a bill that makes various tax law amendments to provide tax credits to qualifying businesses.

Highlights:

• Provides a tax credit to employers who increase employment opportunities, and requires that employers do the following to be eligible (Sec. 2):
• Relocate to Arizona from another state or expand in-state operations;
• Create at least 25 new full-time positions in a city or town with at least 50,000 people or at least 15 new full-time positions in any other location.

• Amends the state equalization assistance property tax rates as follows (Sec. 5):
• Tax years 2009 and 2010 shall be computed by adjusting the 2005 tax rate of $0.4358 through tax years 2009 and 2010;
• Tax year 2011 shall be 75 percent the rate for 2010;
• Tax year 2012 shall be 50 percent of the rate for 2010;
• Tax year 2013 shall be 25 percent of the rate for 2010; and
• Tax years after 2013 shall be 0.

• Requires a business or insurer to do the following to qualify for an income tax credit or a premium tax credit (Sec. 8):
• Relocate to Arizona from another state or expand in-state operations;
• Create at least 25 new full-time positions in a city or town with at least 50,000 people or at least 15 new full-time positions in any other location;
• Compensate employees at least equal to 175 percent of the annual county wage offer determined by the Department of Economic Security Research Administration;
• Provide health insurance for full-time employees, with the employer paying at least 50 percent premium or membership costs; and
• Submit a resolution stating the business intends to meet the requirements of this section and any incentives offered to the business by the town, city or county of its location.

• Extends the period for which a business can qualify for property tax incentives from 2011 to 2016, and requires a business to invest at least the following in fixed assets after December 31, 2010 in order to qualify (Sec. 9):
• In a city with a population over 50,000, at least $5 million of capital investment within three years of first being certified under this section;
• In any other location, at least $2 million of capital investment within three years of first being certified under this section; and
• In any location, a capital investment of at least $250 million and at least 150 new full-time employees.

• Establishes the Arizona Opportunity Fund to award grants for the purpose of attracting businesses to Arizona and for economic, infrastructure and community development (Sec. 13). 

• Establishes that corporate tax rates shall be the greater of $50 or one of the following amounts (Sec. 29):
• 6.968 percent of net income for taxable years through December 31, 2010;
• 6.476 percent of net income for taxable year December 31, 2010 through December 31, 2011;
• 5.984 percent of net income for taxable year December 31, 2011 through December 31, 2012;
• 5.492 percent of net income for taxable year December 31, 2012 through December 31, 2013; and
• 5 percent of net income for taxable years from and after December 31, 2013.

• Allows a tax credit against taxes imposed for increases in employees in "qualified" employment positions as certified by the Department of Commerce, and specifies that such credits shall be equal to (Sec. 31):
• $3,000 for each full-time employee, up to 400, hired by an Arizona Basic Enterprise; and
• $1,500 for each full-time employee, up to 400, hired by any other taxpayer.

Full Bill Text