City of Chandler Incentives
The City maintains a deal closing fund for competitive and impactful projects. This fund has previously been used to assist companies establishing new operations in Chandler by offsetting some of the costs of hiring, relocation and training of new employees. Staff will evaluate the preliminary parameters of a project to determine whether an incentive offer may be appropriate. Any incentives offered would be part of a development agreement that is subject to City Council approval.
In order to expedite the commencement of operations, the City may provide an expedited turnaround on City plan review at no additional cost. This incentive is available to significant economic development projects as determined by City staff.
Facilitates projects within the designated Infill Incentive District that redevelop all or a significant portion of an existing commercial center in order to introduce new and/or additional uses. City participation is generally in the form of reimbursements for costs such as the demolition of existing commercial space and/or for providing the public infrastructure necessary to accommodate new uses on the site.
Chandler Industrial Development Authority (CIDA) provides tax-exempt financing through industrial revenue bonds for the financing or refinancing of the cost of acquisition, construction, improvement, rehabilitation or equipping of a project.
Chandler Industrial Development Authority also provides a Chandler Collateral Assistance Program for local businesses seeking loans. The program provides additional collateral up to $50,000 or 20 percent of the total loan proceeds, whichever is less, to eligible businesses.
State and Federal Incentives
Nonrefundable income tax credits for creating quality jobs and making capital investment in Arizona. Credit of $3,000 per qualified position per year for three years ($9,000 total).
Refundable income tax credit for locating or expanding manufacturing, manufacturing-related R&D or headquarters operations.
No import tariff payments for manufacturers that use intermediate goods to export final goods. 72% reduction for real and personal property taxes (from 18% to 5%).
Nonrefundable income tax credit equal to 24% of the first $2.5 million in qualifying expenses plus 15% of the qualifying expenses over $2.5 million. Companies with less than 150 employees can apply to the ACA to make their credit refundable (75% of nonrefundable credit value).
Helps startups attract early-stage funding by providing income tax credits to investors. The tax credit can total up to 35% of the investment amount over three years for bioscience companies and 30% for other qualified companies.
The Opportunity Zones program was enacted as part of the 2017 federal tax reform package known as the Tax Cuts and Jobs Act. The program uses federal tax incentives to encourage private investment in lower income areas, as defined by median family income and poverty rate. Investors can defer and partially eliminate taxes on capital gains when the sale proceeds are reinvested into Opportunity Funds. Eligible fund activities include investing in real estate development projects and businesses located in Opportunity Zones.
The City of Chandler has two approved Opportunity Zones. Download our Opportunity Zones brochure for more information on the program and Chandler's Opportunity Zones.
For more information, contact:
Economic Development Specialist