Official Web Site of the City of Phoenix

Assistance Programs

Arizona Job Training Program - The Arizona Job Training Program can defray the costs of training new employees. Funds are available on a grant basis, and eligibility for funding is determined by the number of new hires, wage rates, benefits, and other basic elements related to your project. The allocation of these resources can range from $2,000 to $5,000 per job. The Arizona Job Training Program also can help companies to train existing employees in Arizona through the incumbent worker portion of this job training grant program. Award amounts remain within the same range; however, only up to 50% of job training costs are reimbursed, versus 75% for new workers. Visit http://www.azcommerce.com/workforce/default.htm for more information.

Work Force Services - The City can facilitate access to educational institutions, training opportunities, public and private work force development programs, and day care providers, and can coordinate and broker customized services and programs tailored to meet the special needs of employers. In addition, the City can provide information on labor force availability, employee benefits, salary profiles, and educational statistics. The City of Phoenix has recently completed a labor force survey for the Phoenix metropolitan area. For more information and survey results, visit www.usworks.com/Phoenix. Also visit the Phoenix Workforce Connection site for more information on the City of Phoenix Workforce Development programs.

Technology Training Tax Credit - Qualified employers can receive state corporate income tax credits for expenses incurred in providing technology skills training. The maximum credit allowed is $1,500 per employee and the maximum number of credits per company is 20. Training must be provided by an accredited institution.

Telecommunications Information - The City of Phoenix maintains a composite map of fiber optics conduits installed by telecommunications companies within the city. Maps and company contacts are available upon request.

Research & Development Income Tax Credit - The R&D income tax credit is a state tax credit for qualified research and development activities performed in Arizona. Qualifying research must be conducted in Arizona; the credit includes publicly funded research conducted at a university. The maximum credit is $100,000 in year one, $250,000 in year two, $400,000 in year three and $500,000 in year four and subsequent years. The program allows a 15-year carry-forward provision.

City of Phoenix Enterprise Zone (COPEZ) - COPEZ makes it more profitable to do business in designated areas of the city. This program offers income and property tax benefits for qualifying businesses that create jobs or make capital investments within the more than 100 square miles of Phoenix designated as an Enterprise Zone. A company located in the zone can claim up to $3,000 per hire for state corporate income tax credits over a three-year period. In order to qualify for the tax credits, jobs must meet certain quality criteria, be new to the company, and 35% of the employees for whom an employer receives tax credits must reside in an enterprise zone upon date of hire. Qualified manufacturing businesses are also eligible for property tax reclassification for five years, resulting in an 80% reduction on primary real and personal property taxes. Visit the City of Phoenix Enterprise Zone: http://www.phoenix.gov/BUSINESS/enterzon.html.

Phoenix Industrial Development Authority (PIDA) Bonds - PIDA can provide tax-exempt financing utilizing industrial revenue bonds up to $10 million for the acquisition, construction, equipping or improvement of qualified manufacturing projects located within the City of Phoenix. Qualifying projects generally need to borrow at least $1 million through PIDA for this program to be beneficial. Usually, the interest rate on these bonds ranges from one to three points below the prime interest rate. The interest earned on these bonds is exempt from federal and state income taxation, resulting in the reduction of the overall cost of financing a project.

Foreign Trade Zone (FTZ) - Foreign Trade Zone #75, administered by the City of Phoenix, lies within the heart of metropolitan Phoenix adjacent to Phoenix Sky Harbor International Airport. As the zone administrator, the City of Phoenix can also create Foreign Trade Zone subzones for qualifying projects throughout metropolitan Phoenix. Foreign trade zones are used nationally by companies to reduce, eliminate, or defer payment of customs duties on products that are imported into the United States. Additionally, companies operating in the Phoenix Foreign Trade Zone can benefit from an 80 percent reduction in real and personal property taxes.

Site Selection - The City of Phoenix works closely with the local real estate brokerage and development community and can provide information on prospective sites, real estate costs, infrastructure, and demographic profiles. Call to arrange a site tour at your convenience.

Development Review - The City of Phoenix has a streamlined process to handle all issues related to the physical development of your project in Phoenix. Your proposed project will have one of our staff members assigned to closely monitor it through the city's development process. The City also provides free development assistance services within the Business Customer Service Center. This center provides assistance in navigating the city development process, resolving problems with startup and expanding businesses, and referrals on development process, fee estimates, plan review time frames, and steps necessary for city approval and permits. For additional information please call (602) 534-2000.

Relocation Services - The City of Phoenix works closely with corporate relocation firms that specialize in assisting companies relocating their employees to Phoenix. We can provide information on temporary housing, home-buying options, schools, shopping, and amenities. Services are available at no cost to your company.

Redevelopment Area Tax Abatement - State of Arizona property tax incentives are available in designated central city redevelopment areas. Under qualifying conditions in such an area, real property may be subject to an excise tax, which is significantly lower than a traditional property tax. This program may also be available outside of redevelopment areas; however, the tax rate would be one and one-half times the rate applied within redevelopment areas.

Accelerated Depreciation for Commercial Personal Property - A four-year accelerated depreciation schedule for Class Three and Class Four personal property (including personal property devoted to commercial or industrial use) has been adopted by the State of Arizona. Accelerated depreciation reduces the full-cash value to 40 percent of scheduled depreciated value for the first tax year; 56 percent for the second year; 72 percent for the third year; and 88 percent of scheduled depreciated value for the fourth year. Beginning in the fifth tax year, the schedule reverts to the original levels.

Sales and Use Tax Exemption - Transaction privilege (sales) taxes are assessed on the gross proceeds of sales from certain activities. Use taxes are levied on purchases of personal property for use, consumption, storage within the state upon which no tax was paid or a tax was paid to another state at a lower rate than Arizona's. Arizona exempts the sales of machinery or equipment used directly in manufacturing operations and R&D from both the state transaction privilege tax and state use tax.


Business Customer Service Center (BCSC) - The BCSC serves as a one-stop service center for businesses and customers seeking development information and/or are interested in developing property or starting a business in Phoenix. The Business Customer Service Center serves as a customer consultant in navigating the city development process and assists in resolving problems with start-up and expanding businesses. The BCSC provides information and referrals on development process, fee estimates, plan review time frames, and steps necessary for city approval and permits.

On-Line Permitting Services- The City of Phoenix uses a Web-based permitting system, allowing customers to see real-time permit information and project status. Customers can request and cancel inspections, view inspector comments, and track permit history.

Annual Facilities Permit (AFP) -Phoenix's AFP program simplifies the permitting and inspection process by maintaining inspectors who are familiar with a specific facility's construction and can review related plans. Participating facilities are exempt from conventional permits for work regulated by the construction code when such work does not increase the floor area and is performed on the facility's existing buildings, structures and utilities. The facility must be engaged in manufacturing, processing or service and contain specialized buildings and service equipment that require full-time maintenance staff.

Management Technical Assistance (MTA) - To assist small businesses, Phoenix's Management Technical Assistance program provides access to private business consultants at no cost. MTA consultants provide expertise in general business and marketing, financing and loan packaging, business needs assessment and workforce development. Other technical areas may be available.

Expansion Assistance and Development Program (EXPAND) - Phoenix's EXPAND program encourages lender participation by reducing lender risk through collateral enhancement. EXPAND reserve deposits are pledged in amounts from 25% to 50% of a loan with a ceiling of $150,000.

Capital Access Program (CAP) - The City of Phoenix's Capital Access Program encourages lenders to make loans that present a moderately higher risk than normally considered. Eligible businesses are commercial enterprises in the City's Enterprise Community, smaller manufacturers, wholesalers, and distributors. CAP loans are made directly through a bank and qualifying businesses will pay a market rate of interest, plus a premium up to 6 percent of the loan amount. The loan premium is matched by the City of Phoenix Industrial Development Authority to reduce lender risk. For more information on the City of Phoenix's Capital Access Program and other small business financing programs, visit: http://www.phoenix.gov/BUSINESS/smallbus.html#finance.

New Markets Tax Credit - The Phoenix Community Development and Investment Corporation (PCDIC), a non-profit corporation, has received an allocation totaling $170 million from the U.S. Department of Treasury, Community Development Financial Institutions Fund. With this significant allocation, PCDIC will be offering loans and equity investments to qualifying commercial, retail, and industrial projects and small businesses in under-served areas of Phoenix with the intent of improving the economic conditions of those areas.

High-Growth Entrepreneur Resources - This matrix of services was compiled to meet the needs of High-Growth Entrepreneurs: “individuals who lead small businesses that are based on knowledge, innovation, new technology, and are designed to grow quickly.” This includes businesses with innovative, patented technology and businesses that were created with a business model of rapid growth.

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The city of Phoenix provides accessibility to information, participation, services and employment for persons with disabilities. This guide may be made available in the following alternative formats: large print, braille or audio-tape by calling (602) 534-CITY (2489).