|
City of Phoenix Enterprise Zone
Enterprise Zone Income Tax Credits Benefit
Eligibility
All businesses in the zone with less than 10% retail of products that are
either manufactured at the location, food and beverage for employees, or promotional
products with company logo. A business must create net new jobs over the previous
tax year, limited to 200 jobs per year.
Jobs must meet a quality definition as follows:
- Full-time, performed primarily at zone location
- Minimum target wage = $9.64 per hour in 2007
- Health benefits paid at least 50% by employer
Positions must be filled for a minimum 90 days of the tax year. Also, 35%
of the new positions must be filled by zone residents. Jobs must be net new,
and new to Arizona.
Tax Benefit
Employer can receive up to $3,000 credit for each qualifying job, phased
in over three years as follows:
- $500 credit the first year
- $ 1,000 credit the second year
- $ 1,500 credit the third year
Process
- Company is responsible for determining zone residency status of employee,
preparing and filing forms,
and maintaining records.
- Employer retains normal personnel records related to wages, benefits and
residency to substantiate
credits in the event of an audit.
- The employer claims credits on Form 304, Enterprise Zone Tax Credits, when
filing State corporate
income taxes.
- Credits can be carried over for up to five years.
|
City of Phoenix
Community and Economic Development Department
200 West Washington Street, 20th Floor
Phoenix, Arizona 85003
|
Call: 602.262.5040
Fax: 602.495.5097
TTY: 602.534.3476
|
|
Email: Click
here to send
|
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).
Last Modified on
12/31/2007 14:59:54
|
