MORE DETAILS EMERGE ON BREWER'S JOBS PLAN

posted by Michael Chihak

Gov. Jan Brewer called the Arizona Legislature into special session this afternoon to take up her economic development package.

A news release from Brewer's office this afternoon gave these details on the business tax-cut package that is part of what she is calling "the Arizona Competitiveness Package," designed to stimulate job growth:

• The creation of a Quality Jobs Program, with corporate tax credits of up to $9,000 for each qualifying new job. ($3,000 per job, per year, with a 400-job cap)

• An increase in the electable state corporate income-tax sales factor to 100 percent, up from the current 80 percent. This will encourage firms to establish headquarters and manufacturing centers in Arizona.

• Re-authorization of the Arizona Job Training Program, providing job-specific, reimbursable grants to train employees for new careers.

• A four-year, phased-in reduction of the state’s corporate income tax to 4.9 percent, beginning in January 2014. This will give Arizona the nation’s fifth most competitive corporate income-tax rate.

• A 10 percent increase in the state’s Research & Development tax credit, encouraging further collaboration between Arizona’s research universities and the private sector.

• A 5 percent acceleration of the depreciation schedule for business personal property, spurring purchases of new equipment and other capital investments.

BREWER ECONOMIC PLAN UNVEILED; BIZ TAX CUTS ON TOP

posted by Michael Chihak

Arizona Gov. Jan Brewer announced her economic development plan today at the State Capitol, leading as expected with a package of business tax cuts.

The plan also calls for the legal trappings to change Arizona's Commerce Department to a private-public Commerce Authority to boost economic development and a "deal-closing" fund to lure businesses to the state.

A special legislative session will be called to allow the Legislature to focus on the plan and get it passed quickly.

The business tax cuts will include a reduction in the state corporate income tax by about 29 percent, elimination of the state tax on goods manufactured in Arizona but sold elsewhere, reductions in real estate and personal property tax rates for businesses and other tax-reducing steps. All would be implemented gradually beginning in about two years, taking full effect by 2017.

The Joint Legislative Budget Committee has estimated that a similar business tax-cut plan in the Senate would save businesses about $475 million a year when fully implemented.

Arizona Week will look at details of the plan throughout the week and on Friday evening's program. We are seeking interviews with the governor, with Arizona Commerce Authority Don Cardon and with an economist for analysis of the plan.