RESOURCE MENU
Western Maricopa Enterprise Zone (WMEZ)
The Arizona Department of Commerce established an enterprise zone program to improve the economies of defined areas within the State of Arizona with high poverty or unemployment rates. The Enterprise Zone program provides enhanced opportunities for private investment within the defined zone district designated by the Department of Commerce for a period of up to 5 years. New job tax credits and property tax benefits for manufacturers are offered to provide incentives to companies that create jobs and do business within the enterprise zone.
Enterprise Zone Enterprise Zone Map (PDF)
New Job Income/Premium Tax Credits
Arizona statutes provide for an income and premium tax credits that may total up to $3,000 per new job position over a period of 3 years, with a maximum of 200 employees in any given tax year.
Company Eligibility
Any company located within the designated enterprise zone with less than 10% retail sales is eligible. The 10% retail activity is restricted to 3 designated categories: 1) Food and beverage for consumption on the premises solely by employees and occasional guests, 2) promotional products displaying the company logo or trademark, and 3) products sold to company employees.
Qualifying companies create new jobs that:
- Create new jobs that are full-time and permanent
(1,750 hours per week)
- Pay an hourly wage above the wage offered by the
county
- Pay at least 50% of health insurance costs for
the employees
- Have employees that work at least 90 days in the
first tax year and
- Have 35% of their new employees (on whom the
credit is taken) living within the same enterprise
zone in the same county as the business on the date
of hire.
Manufacturer Property Tax Benefits
Property reclassification is available within the zone for manufacturer or commercial printing businesses to become eligible for an assessment ratio of 5% on all personal and real property (for primary tax purposes only) for a period of 5 years.
Company Eligibility
Qualified manufacturing and commercial printing companies doing business within the zone, and are:
- Minority-owned, woman-owned and small businesses
(fewer than 100 employees or gross annual sales of
$4 million or less), and
- Independently-owned and operated (under general
circumstances, 50% of the company cannot be owned by
different businesses or it becomes ineligible), and
- Make an investment of fixed assets (depending on
location) of $500,000, $1,000,000 or $2,000,000. The
investment can be aggregated from 1/1/2001 as long
as the zone was in place during that time.
For further detailed information, contact the Arizona
Department of Commerce Zone Administrator (602) 771-1100
or their website –
www.azcommerce.com.
