The City of Apache Junction is committed to helping our local economy grow and diversify.  The Economic Development Department is organized with a full time Business Advocate to assist companies in dealing with a wide array of issues and concerns that often impact the development process.

Local incentives are typically addressed through a negotiated Development Agreement.  Among the factors directly influencing the level of incentive are:
        
        New/growth of local sales tax revenue
        New capital investment, resulting from the proposed project
        Number, type and annual payroll impact of jobs created (or retained)            
        within Apache Junction

The Economic Development staff recognizes that each prospect is unique, and staff seeks to craft a "win-win" incentive package recommendation that works for the prospect's specific circumstances.  All Development Agreements are subject to the approval of the Apache Junction City Council.

A portion of Apache Junction is located within the Pinal County state enterprise zone.

Businesses who locate or expand within the zone may receive a state corporate income tax credit of up to $3,000 per new employee over three years if the jobs created are full-time, the company pays at least 50% of health insurance costs, the employees earn at least $8.41 an hour and 35% of new employees live within Pinal County. Unused income tax credits may be carried forward for up to five years.

Manufacturing firms that are "small", woman or minority-owned and which invest at least $1 million in fixed assets may be eligible for a property tax reduction of between 40% and 60% for five years. A "small" business in this context is defined as having annual receipts of less than $4 million or fewer than 100 full-time employees at the zone location. After initial certification as a small business, a company may grow beyond the limits of a small business and retain its' certification.

Bond interest is exempt from federal income tax for most bond holders. A manufacturing company may issue up to $10 million in bonds. Bond allocations are competitive, with a lottery held on the first business day of each year. Allocation of state cap is good for 60 days with a 60-day extension. Bond proceeds may be used for the construction of industrial and manufacturing facilities, and the purchase of equipment.

Annual state allocation: About $300 million.

Apache Junction has two redevelopment areas (approximately two miles north of US 60) that are joined by a Single Central Business District (SCBD) designation.

An SCBD designation, combined with an existing redevelopment area, allows the city to abate all property taxes on a parcel for up to eight years, and partial property taxes may be abated for an additional 50 years, based upon a declining percentage formula.

Apache Junction is one of two communities in the state which is allowed to utilize tax increment financing as a redevelopment funding source.

This program provides low interest (3-5% ) loans of up to $500,000 for the acquisition and installation of energy-saving equipment and fixtures. Loan terms of up to seven years are available, depending on the rate of energy savings.

Qualified research and development is eligible, including research conducted at a state university but funded by a private company. A 15-year carry forward is allowed. The maximum credit is:

 

A 10% income tax credit is allowed on real or personal property used to control or prevent pollution.

An aggressive depreciation schedule to encourage new capital investment and reduce personal property tax liability.