Sec 41-1532. Tax incentives; conditions

A. A prime contractor may qualify for an exemption from transaction privilege tax with respect to activities in a military reuse zone as provided, and subject to the terms and conditions prescribed, by section 42-5075, subsection B, paragraph 4.

B. A taxpayer that owns or leases income producing property located in a military reuse zone is eligible for an income tax credit for net increases in employment of full-time employees who are primarily engaged in providing aviation or aerospace services or in manufacturing, assembling or fabricating aviation or aerospace products as provided, and subject to the terms and conditions prescribed, by section 43-1079 or 43-1167, as applicable. To qualify for a tax incentive under this subsection the taxpayer shall:

1. Agree with the Arizona commerce authority in writing to furnish information relating to the amount of tax benefits the taxpayer receives for each taxable year in which the taxpayer claims the credit. If the taxpayer fails to provide the required information, the authority shall immediately revoke the taxpayer's qualification and notify the department of revenue.

2. Enter into a memorandum of understanding with this state through the authority containing employment goals. Each year in which the taxpayer claims the credit the taxpayer shall report in writing to the authority its performance in achieving the goals. The memorandum shall contain provisions that allow:

(a) The authority to stop, readjust or recapture all or part of the tax credit allowed to the taxpayer on noncompliance with the terms of the memorandum.

(b) The authority to notify the department of revenue of the conditions of noncompliance.

(c) The department of revenue to require the taxpayer to file appropriate amended tax returns reflecting the recapture of the tax credit.

C. Taxable property in a military reuse zone that is devoted to providing aviation or aerospace services or to manufacturing, assembling or fabricating aviation or aerospace products qualifies for assessment as class six property as provided, and subject to the terms and conditions prescribed, by sections 42-12006 and 42-15006.

D. To qualify for a tax incentive described in subsection A or C of this section, the taxpayer shall provide to the authority information relating to the amount of tax benefits the taxpayer receives each year for each year in which the taxpayer claims the incentives on forms prescribed by the authority. If the taxpayer fails to provide the required information, the authority shall immediately revoke the taxpayer's certification of eligibility and notify the department of revenue.

E. Taxpayers who qualify for tax incentives under subsection B or C of this section shall be certified by the authority as eligible for a five year period, subject to termination in the event of changed circumstances rendering the taxpayer no longer eligible.

F. Notwithstanding subsection C of this section, an insurer located in a military reuse zone is eligible for a premium tax credit under section 20-224.04 for net increases in employment positions of residents of this state. To qualify for a premium tax credit the insurer shall:

1. Agree with the authority in writing to furnish information relating to the amount of premium tax credits the insurer receives each year. If the insurer fails to provide the required information, the authority shall immediately revoke the insurer's qualification and notify the department of insurance.

2. Enter into a memorandum of understanding with this state through the authority containing employment goals. Each year the insurer shall report in writing to the authority its performance in achieving the goals. The memorandum shall contain provisions that allow:

(a) The authority to stop, readjust or recapture all or part of the premium tax credits provided to the insurer on noncompliance with the terms of the memorandum.

(b) The authority to notify the department of insurance of the conditions of noncompliance.