Incentives and Tax Information

The goal of the Oro Valley Primary Employer Incentive Program is to facilitate long-term community financial sustainability in Oro Valley through the generation of new primary job opportunities and capital investment in the Town. This program aims to encourage the recruitment and development of new primary employers in addition to the expansion of existing ones.  

MINIMUM PRIMARY EMPLOYER QUALIFICATIONS  

To qualify for this program, employers must:  

• Invest at least  $1 million in direct capital investment in Oro Valley; Or  

• Create at least 10 net new full-time, primary employer job opportunities in Oro Valley that pay at least $40,000 annually and meet the median wage in the pertinent industry sectors as determined by government-sourced wage data; AND  

• Be classified as a primary employer.  

Menu of Potential Incentive Credits

Eligible employers can request reimbursement of up to 100% of the project’s construction sales tax collections applied to any of the following expenses:

• Employee relocation expenses: Assistance with the cost of employee relocation (allowable expenses at the discretion of the employer).
• Exterior building aesthetics: Expenses such as building façade or exterior features that improve the appearance of the property. Projects must conform to Oro Valley design standards.
• Renovation expenses: Costs associated with renovating and/or repurposing an existing site for primary employer use by a new or expanding business.
• Job training: Expenses incurred for training employees, including interns and apprentices.
• Sustainable development: Costs associated with investment in renewable energy and sustainability best practices.
• Public infrastructure: Costs of constructing public infrastructure needed to access the employer’s facilities.
• Impact fee offsets: The required development/impact fees applied to a project based on the schedule adopted as of the time of construction may be offset by construction sales taxes collected on the project.

Other Considerations

• In addition to reallocation of capital investment revenues for the qualified expenses outlined above, Ordinance 97-27, which states that 1% of the total budget for every new construction project or expansion of existing projects must be allocated for public art, may be capped at $100,000.
• The Town of Oro Valley may offer reductions of any permit or plan review fees, as well as an expedited permitting process.

• The federal Work Opportunity Tax Credit (WOTC) is available to employers for hiring individuals from certain targeted groups. More information on the WOTC is available here.
• Foreign Trade Zone (FTZ) #174 encompasses all of Pima County, including the Town of Oro Valley. Sun Corridor Inc. is the administrator of FTZ #174 and can provide additional information on how to best utilize this incentive. Information found here.
• The Arizona Commerce Authority (ACA) offers several incentive options to new and expanding businesses in the State of Arizona. The ACA has programs focused on tax relief, talent and training, innovation and entrepreneurship, small businesses, manufacturing, rural economic development, and international trade. More information is available on their website.
• ARIZONA@WORK Pima County One-Stop Workforce Development System offers a nationally recognized job training program to prepare individuals for quality jobs. Pima County can provide federally funded job training programs that could enhance the Town’s incentive effort. More information about the organization and its programming can be found here.
• Tucson Electric Power (TEP) is the Town’s electricity provider and offers discounted rates to new or renovated construction for five years after completion of the project. Information on TEP’s economic development incentives can be found here.
• Southwest Gas is the Town’s gas provider and offers rebates on efforts made to reduce gas consumption. More information can be found here.