Arizona Quality Jobs Tax Credit (QJTC)
Arizona Commerce Authority (ACA)
Up to $9,000 per new job
$9K per new job for AZ businesses
Arizona's Quality Jobs Tax Credit (QJTC) provides up to $9,000 in non-refundable Arizona income or premium tax credits per net new qualified job — paid in $3,000 annual increments over three years. Businesses must make a minimum capital investment and create qualifying full-time jobs that meet county median wage thresholds. Rural businesses face lower investment minimums ($100K–$1M), making this accessible to growing SMBs expanding in smaller Arizona communities.
- Funding type
- Tax Credit
- Level
- State
- Amount
- Up to $9,000 per net new qualified job, claimed in $3,000 annual increments over a three-year period. Non-refundable; excess credits carry forward up to 5 years.
- Realistic amount
- A business creating 10 qualifying jobs would receive up to $90,000 in credits over three years ($30,000/year). Most smal…
- Deadline
- Rolling pre-approval — ACA allocates credits on a first-come, first-served basis up to 10,000 qualifying jobs per calendar year.
- Status
- active
- States
- AZ
- Payment model
- tax offset
Who qualifies
- Business must be located in Arizona and in good standing
- URBAN: Must invest at least $5,000,000 in capital AND create at least 25 net new jobs paying ≥100% of county median wage
- RURAL (Standard): Must invest at least $1,000,000 in capital AND create at least 5 net new jobs paying ≥100% of county median wage
- RURAL (Enhanced): Must invest at least $500,000 in capital AND create at least 5 net new jobs paying ≥125% of county median wage
- RURAL (High-Wage): Must invest at least $100,000 in capital AND create at least 5 net new jobs paying ≥150% of county median wage
- Net new jobs must be full-time positions for residents of Arizona
- Credits claimed once within a 12-month period after meeting investment + job creation thresholds
- Pre-approval from ACA required before job creation begins
Hard requirements
- Must be incorporated
- Requires creating at least 5 new jobs
What it covers
Eligible expenses
- Arizona income or premium tax liability (credits directly offset taxes owed)
Ineligible expenses
- Federal income taxes
- Credits cannot be sold or transferred to another taxpayer
How to apply
-
1
File pre-approval application with ACA
Submit a pre-application to ACA identifying the business location, capital investment planned, expected new jobs, wages, and timeline. ACA issues a Pre-Approval Letter reserving credits on a first-come, first-served basis. Credits are reserved, not yet earned.
-
2
Make capital investment and create qualifying jobs
Within the 12-month period specified in the Pre-Approval Letter, make the required capital investment and hire the minimum number of qualifying full-time employees at the required wage levels.
-
3
File post-approval certification after taxable year close
After the close of the taxable year, file the post-approval application with ACA certifying that investment and job creation requirements have been met. ACA then issues a Tax Credit Allocation Letter.
-
4
Claim credits on Arizona income or premium tax return
Claim $3,000 per qualifying job in year 1, year 2, and year 3 on the Arizona income or premium tax return. Unused credits carry forward up to 5 years.
Rural AZ businesses have dramatically lower thresholds — $100K investment + 5 jobs at 150% county median wage is achievable for most growing SMBs. The credits are non-refundable, so you need Arizona tax liability to use them.
Deadline & timing
Pre-approval applications are accepted year-round. The annual program cap is 10,000 net new jobs across all participants. Apply before year-end — the cap has been reached in prior years. Post-approval certification must be filed after the taxable year in which jobs were created.
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Last reviewed 2026. GrantCompass is an independent funding-discovery tool and is not affiliated with any government agency. Always confirm details on the official program page.