Government Property Lease Excise Tax (GPLET)
The GPLET can provide up to eight (8) years of property tax abatement. This incentive is available for projects located in the Central Business District that result in a property value increase of at least 100%. The amount abated cannot exceed the economic benefit created by the project. To become "government property" the City will take ownership of the property for the duration that the owner wishes to be relieved of tax obligations
Primary Jobs Incentive
The Primary Jobs Incentive assists Tucson in its efforts to bring quality jobs and investment into the region. The incentive provides up to a 100% credit of construction sales tax to qualifying expenses such as job-training, the project’s public infrastructure improvements and/or offsets to impact fees. The City will also waive building permit fees. Eligible projects must:
a) invests a minimum of $5 million in facilities or equipment
b) creates 25 jobs that pay average wages of at least $52,400 (and all other local jobs are paid an average of $45,600)
c) cover at least 75% of employee health insurance premiums
Site Specific Sales Tax Incentive*
For retail projects that would not otherwise locate in the city of Tucson, the City can apply project-generated tax revenues to qualifying public expenses such as job training or public infrastructure improvements. Projects must create significant and quantifiable economic benefits to be considered. The amount of sales tax revenue applied cannot exceed the economic benefit created by the project.
Tucson Community Development Loan Fund
The City of Tucson has a $20 million HUD 108 loan fund that can be used as gap financing for projects that create jobs for low and moderate income persons, eliminate blight or meet urgent community needs. Tucson Community Development loans carry highly competitive interest rates with fixed terms up to 20 years. Eligible activities include real property acquisition, rehabilitation of real property, relocation, clearance and demolition, site preparation, public facilities improvements, issuance costs, capitalized interest and reserves.
Tucson Industrial Development Authority (TIDA) Bonds and Loans
The TIDA may provide financing of projects whenever appropriate and where traditional sources of funding may not be available. Projects must serve a public purpose and meet eligibility requirements of the TIDA. The TIDA places an emphasis on new and expanding businesses where sources of traditional capital are not available. Contact the Tucson IDA