The City is committed to supporting businesses within our community. Your existing, expanding or relocating business is a valuable asset to Avondale. Questions? Call us at 623-333-1400 or firstname.lastname@example.org.
Economic Development Agreements
Because of the value placed on quality employment opportunities, Avondale utilizes economic development agreements (EDAs) as a tool for attracting businesses to the community. Incentives provided through our EDAs range from construction sales tax rebates to rebates of planning and constructions permits, as well as other fees. Other incentives may be provided on a case-by-case basis.
Eligible projects within commercial and residential infill incentive areas will receive a waiver of 50% of the building permits and plan review fees through Avondale's Infill Incentive program.
Opportunity Zones are designed to spur economic development by providing tax benefits to investors. First, investors can defer tax on any prior gains until the earlier of the date on which an investment is sold or exchanged, or December 31, 2026, so long as the gain is reinvested in a Qualified Opportunity Fund. Second, if the investor holds the investment in the Opportunity Fund for at least ten years, the investor would be eligible for an increase in basis equal to the fair market value of the investment on the date that the investment is sold or exchanged. The current list of approved Opportunity Zones in the state can be found here.
Quality Jobs Tax Credit
The State of Arizona offers an incentive program that provides up to $9,000 of Arizona income or premium tax credits spread over a three-year period for each of the net new quality jobs ($3,000 per year). If the allowable tax credit exceeds the income or premium tax liability, any unused amount may be carried forward up to five consecutive taxable years. This is a simple two-page process that has minimal requirements to take advantage of this program. Eligibility includes a minimum capital investment of $1M and the eligible qualified job must be full-time, paying 100% of the median county wage and the company must offer 65% of health insurance costs of the employee.
Qualified Facilities Tax Credit
The Qualified Facility tax was established to promote the location and expansion of manufacturing facilities, including related research & development or headquarters facilities. The company would need to make a Capital Investment of at least $250,000 to establish or expand a Qualified Facility that devotes at least 80% of the property and payroll to qualified manufacturing, manufacturing-related research & development, or headquarters. The company must also create net new full-time employment positions for the project, of which at least 51% are paid at least 125% of the state’s annual median production wage and pays at least 65% of the health insurance premiums for all net new full-time employment positions.
Greater Maricopa Free Trade Zone
The City, as a member community of the Greater Maricopa Foreign Trade Zone (GMFTZ), can provide the assistance and expertise necessary to expedite the approval of your facility’s application for foreign trade zone designation. The GMFTZ allows participating businesses located within this zone to significantly reduce their real and personal property tax liabilities from 18% valuation to a 5% valuation.