We may be able to assist in covering capital costs for new electric service traditionally paid for by the developer or end user. Assistance is based on an applicant’s location, scope of project, economic impact, load size and load characteristics. See our Line Extension Policy to learn more.
If you are considering locating or expanding within our service territory, we can run a customized rate analysis based on your projected kW and load factor.
Helping businesses succeed in Arizona
Economic growth. It’s what helps companies and communities flourish. It’s why we have a team that works with economic development partners across the state to help businesses make informed decisions about locating or expanding existing operations in Arizona. It’s how success stories like these are written and continue to be written.
Microsoft Data Centers
Rose Acre Farms
Seattle Box Company
The place to be
Recognized as one of the top 10 states for job growth, companies locating or expanding in Arizona benefit from low business cost, tax credits and incentive programs designed to increase access to capital and minimize regulation.
Arizona boasts no corporate franchise tax, no income on dividends from out-of-state subsidiaries, and no worldwide unitary tax in addition to having one of the lowest corporate income tax rates in the country at 4.9%.
The business operating costs in Arizona are approximately 40% lower than California. The state, too, offers one of the lowest labor costs in the Western U.S. as a right-to-work state. CNBC ranks Arizona second nationwide in availability of a skilled workforce. All of which makes Arizona a very attractive value proposition for companies across all industry sectors to operate.
Why Arizona according to the Arizona Commerce Authority
The Phoenix metropolitan area is in the top 10 nationally for financial services employment. Business schools within the state are consistently ranked among America’s top 10, offering leading programs in areas such as Supply Chain Management, Entrepreneurship, and Information Systems and Technology.
In addition, Phoenix metropolitan area includes one of the top five regional fiber optic deployments in the U.S. with more than 156,000 miles of fiber optic network capacity. And Phoenix Sky Harbor Airport has over 2,000 direct flights with daily service to approximately 85 U.S. cities and 20 international cities in Europe, Canada, Mexico and Latin America.
Arizona is home to more than 50 major data centers representing both colocation and enterprise facilities. Some of the world’s largest corporations such as Microsoft, eBay/PayPal, GoDaddy, American Express, Iron Mountain and Aligned Energy have built mission-critical facilities within APS territory.
The state’s low-risk profile for tornadoes, earthquakes and other natural disasters, in addition to competitive electric rates and top-quartile reliability, help create the ideal atmosphere for these types of facilities to operate efficiently. In addition, a diverse, 50% clean fuel mix offers greater reliability and allows a larger energy generation portfolio coming from renewable sources.
Driverless vehicles, wearables, cybersecurity, and software and hardware applications have all found an environment to grow in Arizona. In the relentless pursuit of innovation, companies such as Intel, GoDaddy, IDA, Microchip and kaep are committed to disrupting the market. And educational institutions, venture capital access, and research and development efforts are working alongside their efforts to continue to propel innovation in Arizona.
As new technologies are identified and high-tech advancement evolves, Arizona's manufacturing sector is keeping up with change. Output is at its highest level in recorded history according to the Bureau of Economic Analysis. Over 80% of Arizona's $22.6 billion in exports for 2015 were manufactured goods, with a total manufacturing output for 2014 at $23.12 billion. This accounts for approximately 9% of Arizona's Real GDP, with the largest sectors for manufactured goods including electrical machinery, aircraft, spacecraft, machinery and optics. The state has direct access to millions of customers within a one-day drive or less, including the U.S.-Mexico border and the world’s fifth-largest economy, California.
With more than 300 days of sunshine per year, four major research institutions, a strong military presence, and over 1,200 aerospace and defense companies such as Honeywell, Ratheyon, Lockheed Martin, Boeing and General Dynamics in residence, the state continues to thrive in the aerospace and defense sectors. Maintenance, Repair and Overhaul, Cybersecurity, Unmanned Aerial Systems, Space Satellites and Optics round out this industry sector and the reason Arizona has the fourth-highest concentration of aerospace manufacturing jobs in America.
Arizona’s biomedical and health services industries benefit from solid relationships with major institutions, hospitals, private firms and public universities. CNBC ranks the state second nationwide in availability of skilled workforce with biomedical jobs growing three times faster than the national average and academic research and development expenditures in life sciences, bioengineering and medical engineering in Arizona totaling more than $383 million in fiscal year 2014.
Arizona State Incentives
This program provides sales and use tax exemptions at the state, county and local levels, on qualifying purchases of equipment. An owner, operator or qualified co-location tenant of a data center may receive the exemptions provided by the incentive for up to 10 calendar years or 20 calendar years if the CDC qualifies as a Sustainable Redevelopment Project.
Businesses located in a zone or sub-zone are eligible for up to a 72.9% reduction in state real and personal property taxes.
The Arizona Job Training Program is a job-specific reimbursable grant program that supports the design and delivery of customized training plans for employers creating net new jobs. Under a “net new” grant, maximum grant award available will be $1.3 million per employer – with up to $8,000 in eligible training costs per employee-trainee for rural employers and employers with fewer than 100 employees, and up to $5,000 per employee-trainee for all other employers.
The Government Property Lease Excise Tax is a redevelopment tool to initiate development by reducing a project’s operating costs by replacing the real property tax with an excise tax.
Arizona State Incentives
This incentive provides a refundable tax credit to expanding or locating manufacturing facilities, including manufacturing-related research and development or headquarter facilities.
This incentive offers up to $9,000 of Arizona income or premium tax credits to employers creating a minimum number of net new jobs and capital investment in Arizona.
The program offers a refundable income tax credit up to 10% of the new qualifying investment to utility-scale generation in the solar, wind, geothermal and other renewable energy industries.
This incentive provides an Arizona income tax credit for increased research and development activities conducted in this state, including research conducted at a state university and funded by the company.
Companies using at least 51% of their power for manufacturing have the ability to exempt themselves from state and county utility sales tax, which saves approx. 6-7% on a company’s total utility bill. Cities also have the option to opt into the program, saving company’s an additional 1.5-2% on their bill.