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 low, uniform, and consistent taxable values.
Examples of assets eligible for additional depreciation include computers and technology, furniture, fixtures and equipment, manufacturing equipment, machinery, warehouse materials handling equipment, restaurant ovens, refrigeration/food storage equipment, office supplies, tractors, sprinkler 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.
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Arizona Department of Revenue
1600 West Monroe Street, Phoenix, AZ 85007-2650
602-716-6843
http://www.azdor.gov