Purpose Authorizes eligible insurance companies located in an enterprise zone or military reuse zone to claim a premium tax credit for net increases in qualified employment positions. An area is eligible to be designated an EZ if the average annual unemployment rate in the area in the preceding two years was at least 150 percent of the average annual statewide unemployment rate for the same period or if the poverty rate in the area is at least 150 percent of the statewide poverty rate. The owner must also certify to the ADC that the owner qualifies to claim the tax credit.
Certification is valid for five years.
The employment position must be a minimum of 1,750 hours per year of full-time employment, employment must include health insurance coverage that the employer pays at least 50 percent of the premium, compensation must be at least equal to the wage offer by the county and the employee cannot have been previously employed by the taxpayer within 12 months before the current date of hire. There is an undetermined negative fiscal impact to the state general fund associated with this legislation. Provisions Premium Tax Credit for Increased Employment in Enterprise Zones 1. Prohibits a tax credit from being allowed for the portion of tax payable to the Fire Fighters' Relief and Pension Fund or the Public Safety Personnel Retirement System. Specifies to qualify for the credit all employees for whom a credit is claimed must be Arizona residents and 35 percent of the employees for whom a credit is claimed must reside, on the date of hire, in an EZ located in the same county where the insurer is located.