Healthy Forest

The primary goal of the Healthy Forest Enterprise incentive ( § 41-1516 is to promote forest health in Arizona. This is achieved by providing incentives for certified businesses that are primarily engaged in harvesting, processing or transporting of qualifying forest products: Use Fuel Tax Reduction (expired 12/31/2024) Transaction Privilege Tax Exemption (TPT Exemption) on: Purchased qualifying equipment Leased or rented qualifying equipment Construction contracts (eligible if construction began before 1/1/2024) Equipment repair parts Motor vehicle fuel and use fuel Use Tax Exemption   on: Qualifying equipment purchased out-of-state Equipment repair parts Motor vehicle fuel and use fuel Property Tax Reduction (expired 12/31/2024) Employment Income Tax Credit (expired 12/31/2020) Production Income Tax Credits   – For taxable years beginning from and after December 31, 2020 through December 31, 2030, a tax credit is allowed for processing qualifying forest products. The credit amount is equal to: $10,000 for the first twenty thousand tons of qualifying forest products the taxpayer processes in a calendar year, and $5,000 for every ten thousand tons thereafter. Note: to be eligible for this credit the taxpayer must apply to the Arizona Department of Revenue between January 2 and January 31st of the year following the calendar year for which the credit is being requested. GENERAL INFORMATION Guidelines Wage Offer by County For more detailed information about program incentives please read below or direct your questions to the  Program Manager . ELIGIBLE APPLICANTS Eligible applicants include: a harvester, processor or transporter that: Is primarily (more than 50 percent) engaged in the harvesting, processing or transporting of Qualified Forest Products in Arizona (documented by the submission of a Forest Approval Letter) Employs at least one full-time permanent employee, and Enters into a Memorandum of Understanding (MOU) with Commerce. APPLICATION PROCESS Pursuant to § 41-1504(C)(1), the Arizona Commerce Authority (ACA) is authorized to begin assessing and collecting fees for processing applications and administering tax incentive programs. Please note: each incentive has different requirements. To ensure eligibility for each incentive please read the guidelines. To become a certified business and receive HF program incentives an eligible business must follow the process below: Apply for program incentives by submitting an application via the ACA Electronic Application System Within 60 days of receipt of a complete application, the ACA will notify the business of approval or denial. If the business is approved, the business must enter into an MOU with the ACA and a Letter of Certification will be issued to the eligible business. The certified business must then submit a copy of the Letter of Certification to the Arizona Department of Revenue (Revenue) for approval before using the certification to obtain program incentives. To obtain approval, Revenue is asking that the business submit a   Tax Clearance Application Form   with a copy of the Letter of Certification. Within 60 days of receipt of the Letter of Certification, Revenue will notify the business of approval or denial. If the Letter of Certification is approved, incentives offered under the Healthy Forest Enterprise Incentives Program can be claimed. Apply electronically for program incentives. Apply for Program RECERTIFICATION & REPORTING PROCESS