Forest ProductsTax Credit Sourcebook

Arizona · Manufacturing / Investment · AZ-QF-001

Qualified Facility Income Tax Credit

Publication revised September 24, 2026. Sourcebook page 32.

Credit amount / calculation

Lesser of 10% of qualifying investment, the applicable per-job limit, or $30 million per taxpayer per year. For investments below $2 billion, the job limit is $20,000 per net new job.

Business fit and eligible activity

A qualifying manufacturing facility can receive a substantial credit tied to capital investment and jobs/wages after Arizona Commerce Authority approval. Qualified investment or approved project activity; confirm eligible property, location and taxpayer type.

Eligibility and practical use

At least $250,000 of capital investment is required. The facility must meet manufacturing/headquarters, out-of-state-sales, wage and health-insurance tests. Pre-approval and a subsequent accountant-supported post-approval are required.

Illustrative business benefit

If an approved project has $1.5 million of accepted capital investment and satisfies the employment-based limits, a 10% award is $150,000 total, generally $30,000 in each of five annual installments. Do not count the entire award as a first-year benefit. Page

Timing / first action

Seek approval before signing a purchase order, contract, lease or other binding commitment. Confirm the exact point at which a purchase order, contract, lease, or other binding commitment would make the project ineligible.

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