Budget & Taxes (Tax Credits)

SB 1463 repeals Arizona's Section 41-1519, which previously provided tax relief for data centers. It amends Section 42-2003 to clarify that the Arizona Commerce Authority may disclose confidential tax information to certify computer data centers for tax relief under other statutes. This change directly affects data center operators seeking tax credits by updating how the Commerce Authority accesses taxpayer information for certification. The bill does not create new tax relief but adjusts administrative processes for existing data center tax credit programs.

HB 2939 creates a state income tax credit for businesses expanding or locating qualified facilities in Arizona. It directly affects businesses that make new capital investments, create qualifying jobs paying at least 125% of the median wage (100% in rural areas), and provide 65% employer-paid health insurance. The credit equals 10% of qualifying investments, capped at $200,000-$300,000 per new job, with a $125 million annual cap and $30 million per business limit. Businesses must retain operations at the facility for five years and claim credits in five equal installments over time.