The Canadian automotive parts builder Magna International will be setting up shop in Mesa, Arizona.
The company will be constructing a 230,000 square foot facility in the East Valley city that’s expected to be responsible for hundreds of jobs, according to the Arizona Commerce Authority.
Patrick Ptak, vice president at ACA, said on Thursday that Magna is eligible for performance-based incentives under Arizona’s Quality Jobs and Qualified Facilities tax credit programs. The former allots up to $9,000 of Arizona income or premium tax credits per worker spread over a three-year period if the company meets requirements. The latter is a refundable income tax credit "equal to the lesser of (i) 10 percent of the qualifying capital investment at the facility or (ii) $20,000 per net new job at the facility if the total qualifying investment is less than $2,000,000,000 or $30,000 per net new full-time employment position associated with the facility if the total qualifying investment is more than $2,000,000,000." This program is capped at $30,000,000 per taxpayer annually.
The Phoenix Metropolitan Area is considered one of the country’s top hubs for manufacturing, as many companies have been incentivized by tax benefits, funding, as well as the generally positive business climate in the state. Other auto industry companies, like Lucid Motors in Casa Grande, have established a presence in the Grand Canyon State.
