If you owe back taxes in Arizona, you may qualify for IRS tax relief. In Arizona, there is special tax relief for small businesses. However, you need to make sure you are not a big business owner to qualify for this relief. While this type of relief is similar to IRS tax relief, it is different.
Qualified small businesses can claim income tax credits of up to 30% of the investment amount. This tax relief can be claimed over a three-year period. This program is administered by the Arizona Commerce Authority. It offers a number of other benefits as well. For example, qualifying businesses in Arizona can reduce their property taxes by 10%. Additionally, homeowners can get a rebate of up to 50% of their primary property taxes.
Another way to qualify for Arizona tax relief is to donate to a qualified nonprofit organization. This charity must help low-income or disabled Arizona residents. It should also help TANF recipients. This credit is worth up to $800 for married couples filing jointly and $400 for single filers. Qualifying foster care organizations may also qualify for Arizona tax relief. These nonprofits must provide basic needs for up to 200 qualifying foster care residents.
The job creation tax credit is another form of tax relief in Arizona. You can claim up to $3,000 for each qualifying job created by your business. This credit is effective for three years. After that, it can be carried forward up to five years if you meet certain thresholds for job creation and investment. If you meet the criteria, the Authority will issue a Pre-Approval Letter. This letter will include the amount of tax credits you are eligible for.
-