Additional Depreciation

Additional Depreciation Menu Angel Investment Tax Credit International Operations Center Tax Credit Qualified Facility Tax Credit Quality Job Tax Credit Research & Development Tax Credit Work Opportunity Tax Credit Lease Excise Tax Healthy Forest Tax Exemption Manufacturing Tax Exemptions Additional Depreciation Computer Data Center Exemptions Foreign Trade Zone Military Reuse Zone Arizona’s Additional Depreciation encourages new capital investment in Arizona by reducing the taxable value of most business personal property, resulting in substantially lower personal property tax liabilities for businesses. HB2822, signed into law March 30, 2022, lowers personal property tax liability for business owners by 90% or more by accelerating and simplifying the depreciation schedule for business personal property. Arizona's Additional Depreciation values all qualifying business personal property classified in or after 2022 at 2.5% immediately and indefinitely, regardless of equipment type or use, creating consistent taxable values. Examples of assets eligible for additional depreciation include computers and and equipment, manufacturing materials handling equipment, restaurant ovens, refrigeration/food storage equipment, office systems, hay balers, and cotton harvesters. For more information, please visit the Arizona State Legislature and the Arizona Department of Revenue Business Personal Property Manual . MORE INFORMATION Arizona Department of Revenue 1600 West Monroe 85007-2650 602-716-6843 https://azdor.gov