Businesses in Arizona may receive substantial tax breaks over the next decade if a bill that passed the state House of Representatives Tuesday is approved by the Senate and signed into law. However, many small companies in the Grand Canyon State may be left wondering where their incentives are.
"This latest bill would provide a 10-year break on property taxes for any business that committed itself to spend significantly on new construction or improvements in the state: $5 million for Maricopa and Pima counties and $1 million in the other 13 counties," The Arizona Republic reports.
Proponents argue such a bill will not only encourage private sector investment in state infrastructure but also promote business relocation to Arizona.
However, critics maintain the law is too costly for for the budget revenue that would be lost, especially considering the tax breaks would be administered to businesses that are already willing to spend, as opposed to cash-strapped startups or small businesses looking to form an LLC in Arizona.
Others have argued it is better to set a lower, uniform tax rate for all businesses in the state.
While Arizona has boasted a relatively strong economic recovery, with a recent report from Intuit showing the state experienced a 0.7 percent employment gain in February, fiscal debates such as this one are reflected in budget crises across the nation.
Tags : az, incorporation news, small business management, taxes
Posted: Apr 13th, 2011