Financial Incentives & Loans

     

Business Incentive Application

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. Map

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.

Global Economic Development District (GEDD)

The Global Economic Development District is located in Tucson’s rapidly growing south and southeast side, already a viable and energetic entrepreneurial community, key transportation and logistics infrastructure, key manufacturing operations and the UA Tech Parks. The area has favorable proximity and accessibility to Mexico, Texas and California markets through both rail and road.

Within the GEDD boundary lays the Tucson Tech Corridor (TTC), an area defined by a diverse group of experienced retail estate development professionals and property owners committed to promoting the available development sites within the Corridor. Partners, include the Port of Tucson, UA Tech Parks, Diamond Ventures, and the Ashland Group. Click here to see if your business qualifies.

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.

New Market Tax Credit Program (NMTC Program)

The New Markets Tax Credit Program (NMTC Program) attracts investment capital to low-income communities by permitting individual and corporate investors to receive a tax credit against their Federal income tax return in exchange for making equity investments in specialized financial institutions called Community Development Entities (CDEs). The credit totals 39 percent of the original investment amount and is claimed over a period of seven years (five percent for each of the first three years, and six percent for each of the remaining four years). Contact Dudley Ventures

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