What does the Arizona Commerce Authority do?

It is the State of Arizona's economic development agency, created by law in 2011 to replace the Arizona Department of Commerce. State law gives it the mission of growing and diversifying Arizona's economy and creating high-quality jobs through the expansion, attraction and retention of businesses. It runs many of the state's business tax credits and grants (in fiscal 2022, 386 approvals worth nearly $429 million across 9 tax incentive and 6 grant programs) and funds worker training such as a $13 million semiconductor training center in Phoenix. Its fiscal 2025 annual report describes the state's automated and advanced mobility institute as housed at the Authority.

Who runs the Arizona Commerce Authority?

A board chaired by the Governor governs it. Its 19 voting members are the Governor, the Authority's chief executive and 17 private-sector chief executives, 9 appointed by the Governor and 4 each by the Senate President and House Speaker. Michael Bidwill is co-chair. Sandra Watson has been president and CEO since October 2012.

How is the Arizona Commerce Authority funded?

Mostly with federal grants plus a state General Fund appropriation. The Joint Legislative Budget Committee reports $13.55 million from the General Fund in fiscal 2025, out of $112.2 million from all sources, $92.1 million of it federal. The Arizona Competes Fund, which pays its deal-closing and startup grants, also receives Arizona Lottery money: a 2026 law kept that deposit at $1.75 million a year through fiscal 2029. By law the Authority may have up to 100 full-time employees paid with state money.

What incentives does Arizona offer semiconductor companies?

The main one is the Qualified Facility refundable income tax credit, run by the Arizona Commerce Authority: the lesser of 10% of the investment or $20,000 per net new job ($30,000 for projects of $2 billion or more), with $125 million in preapprovals a year and $30 million per company. In calendar 2025 it preapproved $30 million for TSMC Arizona and $5.96 million for Amkor Technology and postapproved $440,000 and $4.8 million for Applied Materials. Arizona Competes Fund deal-closing grants include $10 million for TSMC Arizona (awarded in fiscal 2023) and $5 million for ASM America (fiscal 2024). The state also funds training, including $13 million for a semiconductor center at GateWay Community College and $4 million for technician apprenticeships.

Does Arizona give tax breaks to data centers?

Yes, but new applications are paused. A data center certified by the Arizona Commerce Authority gets state, county and local sales and use tax exemptions on qualifying equipment for up to 10 years, or 20 for a sustainable redevelopment project, if it invests at least $50 million in Maricopa or Pima County or $25 million elsewhere (at least $200 million for a newly built sustainable redevelopment project). A 2026 law, Laws 2026, Chapter 140, bars the Authority from accepting applications for new data centers, and bars new data centers from qualifying, from July 1, 2026 through June 30, 2029. In fiscal 2025, before the pause, the Authority preapproved 7 data centers, including Vantage Data Centers and Quality Technology Services, with at least $1.1 billion in combined minimum investment.

What did the Auditor General find about the Arizona Commerce Authority?

Its September 2023 sunset review found the Authority lacked documentation that it verified businesses met some requirements before approving nearly $11 million in incentives, spent more than $2.4 million on 5 private CEO Forums from 2018 to 2023, and lacked policies and procedures for nearly $100 million in broadband grants. The Authority agreed to the recommendations but wrote that all of the incentive recipients had met the requirements; the Auditor General said parts of that response misrepresented its work. In January 2024 the Attorney General found the forums violated the Arizona Constitution's Gift Clause. By August 2025, 6 of the audit's 23 recommendations were implemented and 15 were in process.

Arizona Commerce Authority

Arizona's state economic development agency, which runs tax credit, grant and training programs used by chip, data center and other tech companies.

Phoenix, AZ · 2011 · Up to 100 state-funded full-time positions by law (2024); 91 filled positions reported to the Auditor General in August 2023

Visit Arizona Commerce Authority

Arizona AI is tracking 13 news items about Arizona Commerce Authority.

Arizona Commerce Authority: Key Developments

Oct 19, 2026
Making an MPaCT at the Sanghi College of Engineering
NAU took a big step forward in its advanced technology capabilities on Saturday with the opening of the Microelectronics Processing and Characterization Testing (MPaCT) Lab in the Steve Sanghi College of Engineering. The lab, which was funded by an $8 million investment from the Arizona Commerce Authority (ACA), includes a variety of technology like a…
Oct 16, 2026
$6.4M Mesa Training Hub Opens to Strengthen Arizona’s Aerospace Workforce
InBusinessPHX Maricopa Community Colleges and Chandler-Gilbert Community College joined Arizona Governor Katie Hobbs, the Arizona Commerce Authority, and industry partners to officially celebrate the grand opening with a ribbon-cutting ceremony for Arizona’s first-of-its-kind Aerospace & Defense-focused Future48 Workforce Accelerator in Mesa, Arizona. “The Future48 Workforce Accelerators are a model of what Arizona does best: bringing […] The post $6.4M Mesa Training Hub Opens to Strengthen Arizona’s Aerospace Workforce appeared first on Arizona Technology Council.
Oct 15, 2026
Governor Hobbs, Maricopa Community Colleges And Arizona Commerce Authority Celebrate Grand Opening Of Aerospace & Defense Future48 Workforce Accelerator
Arizona Commerce Authority MESA, AZ (October 6, 2026) – Today, Maricopa Community Colleges and Chandler-Gilbert Community College (CGCC) joined Arizona Governor Katie Hobbs, the Arizona Commerce Authority (ACA), and industry partners to officially celebrate the grand opening with a ribbon-cutting ceremony for Arizona’s first-of-its-kind Aerospace & Defense-focused Future48 Workforce Accelerator in Mesa, Arizona. “The Future48 […] The post Governor Hobbs, Maricopa Community Colleges And Arizona Commerce Authority Celebrate Grand Opening Of Aerospace & Defense Future48 Workforce Accelerator appeared first on Arizona Technology Council.
Sep 1, 2026
Arizona business leaders visit Taiwan for 3rd time this year for semiconductor-focused trip
Representatives from the Arizona Commerce Authority are visiting Semicon Taiwan, one of the world's largest semiconductor conferences. The trip focuses on Arizona's connections to the global semiconductor industry.
Jul 23, 2026
Arizona's $109-Billion-Year: A Record-Setting FY2026
The Arizona Commerce Authority reported that companies it and local partners worked with committed to 26,225 projected jobs and more than $109 billion in investment in fiscal 2026, and said it would move to 201 E. Washington St. in downtown Phoenix beginning August 3, 2026.
Nov 13, 2025
Arizona's Top Innovators, Business Leaders and Educators Honored at 2025 Governor's Celebration of Innovation
At the Nov. 12 gala at Chateau Luxe in Phoenix, held with the Arizona Commerce Authority, Aligned Data Centers was named Innovator of the Year for large companies.
Nov 14, 2024
Governor Hobbs Announces Launch Of Semiconductor-Focused Future48 Workforce Accelerator In Phoenix
The Arizona Commerce Authority is putting $13 million into a semiconductor training center with a full-size mock cleanroom at GateWay Community College, part of its $30 million Future48 program.
Nov 13, 2024
Governor Katie Hobbs Encourages Next Generation of Technology and Transportation at Celebration of Innovation Awards
Governor Hobbs said the automated mobility institute housed at the Arizona Commerce Authority would be expanded into the Institute for Advanced Mobility, adding air taxis and other aircraft, and announced the creation of a state AI Steering Committee.
Jun 18, 2024
ACA Statement On Five Year Reauthorization from Governor, Legislature
After the Governor signed a law continuing the Arizona Commerce Authority through 2029, the Authority's chief executive thanked the Governor, legislative leaders and the bill's sponsor for what she called strong bipartisan support.
Jan 16, 2024
Attorney General Mayes Finds ACA CEO Forums Violate Gift Clause
Acting on a referral from the Auditor General, the Attorney General found that the Arizona Commerce Authority's private CEO Forums violated the Arizona Constitution's Gift Clause.
Oct 9, 2023
Arizona Commerce Authority audit finds fraud risk, lack of policies for $100 million grant
The Auditor General's sunset review found the Arizona Commerce Authority could not document that it verified businesses met some requirements for nearly $11 million in incentives, and lacked policies for about $100 million in federal broadband grant money.
Jul 11, 2023
Arizona State University and Applied Materials to Create 'Materials-to-Fab' Center at ASU Research Park
Applied Materials, the Arizona Commerce Authority and ASU announced more than $270 million for a shared 300 mm research and prototyping center inside MacroTechnology Works in Tempe.
Oct 11, 2018
Arizona Governor Doug Ducey Creates Institute for Automated Mobility in Arizona
An executive order created an automated vehicle research consortium overseen by the Arizona Commerce Authority, with ASU, the University of Arizona, Northern Arizona University, state agencies and Intel as founding partners.

About Arizona Commerce Authority

What the Arizona Commerce Authority is

The Arizona Commerce Authority is the State of Arizona's economic development agency. State law gives it the mission of providing private-sector leadership in growing and diversifying the economy of this state and creating high-quality jobs through the expansion, attraction and retention of businesses.

How it was created: The Legislature established it in Laws 2011, 2nd Special Session, Chapter 1, which eliminated the Arizona Department of Commerce, a state agency dating to 1985. Governor Jan Brewer signed the law on February 17, 2011, after a 2010 executive order had created the Authority's board.

Who governs it: A board set by statute, with 19 voting members:

The Governor, who chairs it (Katie Hobbs as of October 2026)
The Authority's president and chief executive
17 private-sector chief executives: 9 appointed by the Governor, 4 by the Senate President and 4 by the House Speaker

Michael Bidwill of the Arizona Cardinals is co-chair, and the board includes the chief executives of Amkor Technology and Cognite. Sandra Watson has been president and CEO since October 2012.

How it is funded: The Joint Legislative Budget Committee reports $13.55 million from the state General Fund in fiscal 2025, the year that ended June 30, 2025. Its total from all sources that year was $112.2 million, of which $92.1 million was federal money.

Its size and office: Since 2024 the law allows no more than 100 full-time employees paid with state money; the Authority reported 91 filled positions to the Auditor General in August 2023. Its office is at 201 E. Washington St., Suite 1800, in downtown Phoenix, where it moved beginning August 3, 2026.

Its legal life: The Authority goes through periodic sunset reviews. After a 2024 bill, SB 1044, proposed repealing its law, Laws 2024, Chapter 206 continued it until July 1, 2029. In 2026 the Legislature continued its Arizona Competes Fund to July 1, 2028 and made its offices in other states and countries subject to a legislative appropriation for that purpose. A separate 2026 tax law, Laws 2026, Chapter 140, repealed the credit for new employment and the refundable part of the research and development credit starting with tax years beginning January 1, 2026, and barred new data center applications from July 1, 2026 through June 30, 2029.

Its role in Arizona's tech economy

The Authority does not build or run technology itself. It shapes Arizona's chip, data center and advanced mobility growth through tax credits, grants, training money and the industry groups it convenes.

Tax credits for factories, including chip plants: The Qualified Facility credit is a refundable income tax credit for manufacturing, manufacturing research and headquarters projects. The Authority may preapprove up to $125 million a year and $30 million per company, and A.R.S. 41-1512 ends preapprovals after the 2030 tax year.

Its calendar 2025 report lists these chip companies:

TSMC Arizona: $30 million preapproved and $30 million postapproved
Amkor Technology: $5.96 million preapproved against the 2025 cap, with a further portion of the same application to be counted against the 2026 cap
Applied Materials: $440,000 and $4.8 million postapproved
Lam Research: $4.94 million reserved, with preapproval not final when the report was prepared

Deal-closing grants: The Arizona Competes Fund pays grants as companies meet hiring and investment milestones. Its grants include $10 million for TSMC Arizona, awarded in fiscal 2023 and tied to commitments of 1,900 jobs and $12.1 billion, and $5 million for ASM America, awarded in fiscal 2024 and tied to 500 jobs and $331 million. The Authority awarded no deal-closing grants in fiscal 2025.

Data centers: Under A.R.S. 41-1519, a certified data center pays no state, county or local sales and use tax on qualifying equipment for up to 10 years, or 20 for a sustainable redevelopment project, if it invests at least $50 million in Maricopa or Pima County or $25 million elsewhere. A 2026 law (Laws 2026, Chapter 140) bars the Authority from accepting applications for new data centers from July 1, 2026 through June 30, 2029; the statute otherwise allows no new certifications for applications filed after December 31, 2033. In fiscal 2025, before the pause, the Authority preapproved 7 data centers, among them Vantage Data Centers and Quality Technology Services (QTS); its report puts their combined minimum required investment at $1.1 billion or more.

Research money for chips: In November 2022 the State put the Authority in charge of a $100 million semiconductor fund. The Authority's semiconductor fact sheet lists where it went:

$47.5 million to Arizona State University for the Applied Materials and ASU Materials-to-Fab laboratory and for advanced packaging and gallium nitride work
$35.5 million to the University of Arizona's Micro/Nano Fabrication Center
$13 million to Northern Arizona University for a microelectronics metrology program
$4 million for semiconductor technician apprenticeships

Training centers: The Authority is putting $30 million into six Future48 Workforce Accelerators with community colleges. The semiconductor center at GateWay Community College in Phoenix has $13 million from the Authority, is being built around a full-size mock cleanroom and was developed with Intel, TSMC and NXP; the Governor's office said in November 2024 that it was expected to be completed by 2026, and GateWay's Future48 page now gives a spring 2027 launch. The Authority reports that Intel's first U.S. registered apprenticeship program for technicians was supported by a $4 million Authority investment.

Startups: Its Arizona Innovation Challenge has made 145 grants totaling $27.6 million since fiscal 2012, including $1 million to 10 startups in fiscal 2025. It also ran a partial cash refund of the state research and development credit for companies with fewer than 150 employees, within a $5 million yearly statewide limit; Laws 2026, Chapter 140 eliminated that refundable portion for tax years beginning January 1, 2026.

Automated vehicles and air mobility: Governor Doug Ducey created the Institute for Automated Mobility by executive order in 2018, overseen by the Authority, with Intel as its first private-sector founding partner. In November 2024 Governor Katie Hobbs announced its expansion into the Institute for Advanced Mobility to consider air taxis and other aircraft.

Industry groups: The Authority launched the Arizona Semiconductor Task Force in August 2022 to coordinate the state's CHIPS Act efforts and reports more than 100 partner organizations in it. It also facilitated the December 2024 relaunch of Science Foundation Arizona to set semiconductor research priorities.

Projects it counted in fiscal 2026: The Authority's list of expansion projects for the year that ended June 30, 2026 includes Amkor in Peoria, TSMC and ASML in Phoenix, Axon in Scottsdale, Applied Materials and Brewer Science in Chandler, and Cognite and Syenta in Tempe. The list does not say which of these projects received state incentives.

Track record

What it reports: The Authority counts the jobs and investment companies commit to when a project is announced. For fiscal 2026 it reported 26,225 projected jobs and more than $109 billion in planned investment, both records by its count. Since 2011 it counts more than 1,428 projects, over 338,000 projected jobs and more than $304 billion. These are commitments made at announcement, not jobs later counted.

Its semiconductor tally: The Authority says Arizona has drawn more than 60 semiconductor expansions since 2020, representing about 25,000 projected jobs and more than $205 billion in investment. Arizona AI has not independently summed these figures.

What its own grant reports show: For the 22 deal-closing grants whose performance periods are complete, companies created 13,694 of the 14,952 jobs they committed, or 92 percent, according to the Competes Fund report. Six other grants were rescinded with no payment after recipients created 836 of 3,835 committed jobs. The Authority's fiscal 2025 annual report lowered its running totals for these grants by 1,965 jobs and $659.8 million in investment, citing a calculation error in prior years.

What auditors found: The Auditor General's 2015 review found the Authority measured its goals by the commitments companies announced rather than jobs actually created, and that 4 of the 6 deal-closing grant files it reviewed lacked evidence the verification steps were performed consistently, while all 8 innovation grant files lacked evidence that self-reported results were verified. Its September 2023 sunset review found no documentation that the Authority verified businesses met some requirements before approving nearly $11 million in incentives.

The Authority agreed to the 2023 recommendations but wrote that all of those recipients had met the requirements. The Auditor General replied that parts of the response misrepresented its work.

Follow-up: By August 2025, 6 of the audit's 23 recommendations were implemented, including procedures adopted by March 2024 to verify jobs and investment before paying grants or approving credits; 15 were still in process. Arizona AI found no later follow-up report as of October 2026.

Controversies and Issues

CEO Forums (2018 to 2023): The Auditor General found the Authority spent more than $2.4 million on 5 private forums for executives around the WM Phoenix Open and the 2023 Super Bowl. On January 16, 2024 the Attorney General found the forums violated the Arizona Constitution's Gift Clause. Status as of August 2025: the Authority revised its 2024 forums so public money would not pay for event tickets, lodging or gift merchandise, and reported that the Attorney General's Office had no further questions about the changes; the Auditor General noted $9,536 in public money spent on some executives' personal transportation at the 2024 WM Phoenix Open forum. A 2024 law requires policies barring state money for executives' lodging, alcohol, personal transportation or event tickets, and the Authority adopted them in September 2024.
Incentive verification (2023): The Auditor General found no documentation that the Authority verified some requirements before approving nearly $11 million in incentives; the Authority agreed to the recommendations but wrote that all of those recipients had met the requirements. Status as of August 2025: the three verification recommendations were implemented, with procedures in place since March 2024.
Broadband grant oversight (2023): The Auditor General found the Authority lacked policies and procedures for nearly $100 million in Arizona Broadband Development Grants. Status as of August 2025: of the four recommendations on these grants, one was implemented, one partly implemented and two were still in process.

Arizona Commerce Authority: By the Numbers

Each figure is dated and linked to its source. Figures that are company-reported, announced, or projected rather than measured are labeled.

Created by law, replacing the Department of Commerce: 2011, replacing the Arizona Department of Commerce
State General Fund appropriation, fiscal 2025: $13.55 million (all sources: $112.2 million, $92.1 million of it federal)
Staff limit: Up to 100 state-funded full-time positions (law since 2024)
Qualified Facility tax credits preapproved, calendar 2025: $125 million, the full annual cap (company-reported)
Arizona Competes Fund grants since fiscal 2012: 235 grants, $131.8 million awarded, $91.4 million paid; no deal-closing grants in fiscal 2025 (company-reported)
Projected new jobs from projects it worked on, fiscal 2026 (Authority's tally): 26,225 projected jobs and more than $109 billion in planned investment (commitments) (announced)

The Arizona build-out, 2011 to 2024

2011: Created by law, replacing the Department of Commerce
2012: Sandra Watson named president and CEO
2018: Institute for Automated Mobility created
2022: Put in charge of a $100 million chip fund
2024: Continued to 2029 by the Legislature

Arizona Commerce Authority Phoenix headquarters

Measure	Value	As of	Basis	Source
Address	201 E. Washington St., Suite 1800, Phoenix, AZ 85004	2026-10-28	company-reported From the company's own published information.	Google Maps
What happens here	Headquarters of the state economic development agency, in the Bank of America Tower at the Collier Center, downtown Phoenix, since August 2026	2026-10-28	company-reported From the company's own published information.	Arizona Commerce Authority

Investment

Measure	Value	As of	Basis	Source
Arizona Innovation Challenge startup grants	145 grants, $27.6 million since fiscal 2012; $1 million to 10 startups in fiscal 2025	2025-06-30	company-reported From the company's own published information.	Arizona Commerce Authority
Tax credits and grants approved or awarded, fiscal 2022	Nearly $429 million across 386 approvals (9 tax incentive and 6 grant programs)	2022-06-30	verified	Arizona Auditor General
Qualified Facility tax credit: how it works	Refundable credit for manufacturing, manufacturing research and headquarters projects: the lesser of 10% of the investment or $20,000 per net new job ($30,000 for projects of $2 billion or more); $125 million a year in preapprovals, $30 million per company; no preapprovals for taxable years after 2030	2026-10-28	verified	Arizona State Legislature
Qualified Facility credits to chip-industry companies, calendar 2025	TSMC Arizona: $30 million preapproved and $30 million postapproved. Amkor Technology: $5.96 million preapproved against the 2025 cap (a further portion of the same application is to be counted against the 2026 cap). Applied Materials: $440,000 and $4.8 million postapproved. Lam Research: $4.94 million reserved, preapproval not final when the report was prepared	2025-12-31	company-reported From the company's own published information.	Arizona Commerce Authority
Deal-closing grants to chip companies (Arizona Competes Fund)	TSMC Arizona: $10 million (awarded in fiscal 2023), tied to commitments of 1,900 jobs and $12.1 billion. ASM America: $5 million (awarded in fiscal 2024), tied to commitments of 500 jobs and $331 million	2024-06-30	announced From a public announcement. Plans can change.	Arizona Commerce Authority
Computer Data Center tax incentive	State, county and local sales and use tax exemptions on qualifying data center equipment for up to 10 years (20 for a sustainable redevelopment project); at least $50 million of new investment in Maricopa or Pima County, $25 million elsewhere, $200 million for a newly built sustainable redevelopment project; under the statute, no new certifications for applications filed after December 31, 2033 (see the 2026 pause)	2026-10-28	verified	Arizona State Legislature
Data centers preapproved, fiscal 2025	7 preapproved (including Vantage Data Centers and Quality Technology Services), at least $1.1 billion in combined minimum investment; 2 postapproved	2025-06-30	company-reported From the company's own published information.	Arizona Commerce Authority
Put in charge of a $100 million chip fund	November 2022: $100 million state semiconductor fund managed by the Authority	2022-11-04	verified	Arizona Commerce Authority
Results claimed since 2011 (Authority's tally)	More than 1,428 projects, over 338,000 projected jobs and more than $304 billion in planned investment (commitments)	2026-06-30	announced From a public announcement. Plans can change.	Greater Phoenix In Business Magazine
Semiconductor expansions since 2020 (Authority's tally)	More than 60 expansions, about 25,000 projected jobs and more than $205 billion in investment since 2020	2025-09-11	announced From a public announcement. Plans can change.	Arizona Commerce Authority
Arizona Competes Fund continued (2026)	Continued to July 1, 2028, with its lottery deposit kept at $1.75 million a year through fiscal 2029 (Laws 2026, Chapter 129, signed June 13, 2026)	2026-06-13	verified	Arizona State Senate
Offices outside Arizona made subject to appropriation (2026)	Offices in other states and countries made subject to a legislative appropriation for that purpose (Laws 2026, Chapter 110, approved June 4, 2026)	2026-06-04	verified	Arizona State Legislature
Incentives repealed by the 2026 tax law	The credit for new employment and the refundable part of the research and development credit (up to $100,000 a year for companies with fewer than 150 employees, $5 million a year statewide) repealed for tax years beginning January 1, 2026 (Laws 2026, Chapter 140, signed June 13, 2026)	2026-06-13	verified	Arizona State Senate
New data center applications paused (2026 law)	The Authority may not accept applications for new computer data centers, and no new data center can qualify, from July 1, 2026 through June 30, 2029 (Laws 2026, Chapter 140)	2026-06-13	verified	Arizona State Senate

Workforce

Measure	Value	As of	Basis	Source
Semiconductor training center at GateWay Community College	$13 million from the Authority; mock cleanroom with 11 training stations (part of a $30 million, six-center Future48 program)	2024-11-14	announced From a public announcement. Plans can change.	Office of the Arizona Governor
Semiconductor apprenticeship funding	$4 million for semiconductor technician apprenticeships, including Intel's first U.S. registered program	2025-06-30	announced From a public announcement. Plans can change.	Arizona Commerce Authority
Deal-closing grants: jobs committed versus created	22 completed grants: 13,694 of 14,952 committed jobs created (92%). 6 rescinded grants: 836 of 3,835, no payments made	2025-06-30	company-reported From the company's own published information.	Arizona Commerce Authority

Other

Measure	Value	As of	Basis	Source
Auditor General finding, 2023: incentives approved without documented verification	Nearly $11 million	2023-09-30	verified	Arizona Auditor General
Board	Chaired by the Governor; 19 voting members including the chief executive and 17 private-sector chief executives (9 named by the Governor, 4 by the Senate President, 4 by the House Speaker); co-chair Michael Bidwill	2026-10-28	verified	Arizona State Legislature
Sandra Watson named president and CEO	October 2012: Sandra Watson chosen as president and CEO; still in the role in October 2026	2012-10-16	company-reported From the company's own published information.	Arizona Commerce Authority
Continued to 2029 by the Legislature	June 18, 2024: continued until July 1, 2029 (Laws 2024, Chapter 206)	2024-06-18	verified	Arizona State Legislature
Conditions added in 2024	Required policies barring state money for business executives' lodging, alcohol, personal transportation or event tickets; 100 state-funded employee limit; recorded board meetings; a Gift Clause attorney as a technical adviser to the board; quarterly reports to legislative leaders on amendments to Arizona Competes Fund grant agreements; the existing annual report expanded to add estimated indirect and induced jobs and a copy to the Governor and legislative leaders	2024-06-18	verified	Arizona State Legislature
Institute for Automated Mobility created	October 2018: automated vehicle institute created under the Authority; expanded to air mobility in November 2024	2018-10-11	company-reported From the company's own published information.	Arizona Commerce Authority
Arizona Semiconductor Task Force	Launched by the Authority in August 2022 to coordinate CHIPS Act efforts; more than 100 partner organizations; Science Foundation Arizona relaunched in December 2024 for semiconductor research priorities	2025-09-11	company-reported From the company's own published information.	Arizona Commerce Authority
Technology projects in its fiscal 2026 list	Amkor (Peoria); TSMC and ASML (Phoenix); Axon (Scottsdale); Applied Materials and Brewer Science (Chandler); Cognite and Syenta (Tempe)	2026-06-30	announced From a public announcement. Plans can change.	Greater Phoenix In Business Magazine
Correction in the Authority's own grant figures	Deal-closing grant totals lowered by 1,965 jobs and $659.8 million in investment for a calculation error in prior years (fiscal 2025 annual report)	2025-06-30	company-reported From the company's own published information.	Arizona Commerce Authority
Earlier audit, 2015	Goals measured by announced commitments rather than jobs created; 4 of 6 deal-closing grant files lacked evidence that verification steps were performed consistently (the other 2 recipients had not yet reported outcomes), and all 8 innovation grant files lacked evidence that self-reported results were verified	2015-09-30	verified	Arizona Auditor General
CEO Forums, 2018 to 2023	More than $2.4 million on 5 private forums; found to violate the Gift Clause by the Attorney General in January 2024	2024-01-16	verified	Arizona Auditor General
Audit finding: broadband grant oversight	Nearly $100 million in Arizona Broadband Development Grants without established policies and procedures (2023 finding)	2023-09-30	verified	Arizona Auditor General
Audit follow-up, August 2025	Of 23 recommendations: 6 implemented, 1 partially implemented, 15 in process, 1 not yet applicable	2025-08-31	verified	Arizona Auditor General

Sources

Arizona Commerce Authority: Common Questions

What does the Arizona Commerce Authority do?: It is the State of Arizona's economic development agency, created by law in 2011 to replace the Arizona Department of Commerce. State law gives it the mission of growing and diversifying Arizona's economy and creating high-quality jobs through the expansion, attraction and retention of businesses. It runs many of the state's business tax credits and grants (in fiscal 2022, 386 approvals worth nearly $429 million across 9 tax incentive and 6 grant programs) and funds worker training such as a $13 million semiconductor training center in Phoenix. Its fiscal 2025 annual report describes the state's automated and advanced mobility institute as housed at the Authority.
Who runs the Arizona Commerce Authority?: A board chaired by the Governor governs it. Its 19 voting members are the Governor, the Authority's chief executive and 17 private-sector chief executives, 9 appointed by the Governor and 4 each by the Senate President and House Speaker. Michael Bidwill is co-chair. Sandra Watson has been president and CEO since October 2012.
How is the Arizona Commerce Authority funded?: Mostly with federal grants plus a state General Fund appropriation. The Joint Legislative Budget Committee reports $13.55 million from the General Fund in fiscal 2025, out of $112.2 million from all sources, $92.1 million of it federal. The Arizona Competes Fund, which pays its deal-closing and startup grants, also receives Arizona Lottery money: a 2026 law kept that deposit at $1.75 million a year through fiscal 2029. By law the Authority may have up to 100 full-time employees paid with state money.
What incentives does Arizona offer semiconductor companies?: The main one is the Qualified Facility refundable income tax credit, run by the Arizona Commerce Authority: the lesser of 10% of the investment or $20,000 per net new job ($30,000 for projects of $2 billion or more), with $125 million in preapprovals a year and $30 million per company. In calendar 2025 it preapproved $30 million for TSMC Arizona and $5.96 million for Amkor Technology and postapproved $440,000 and $4.8 million for Applied Materials. Arizona Competes Fund deal-closing grants include $10 million for TSMC Arizona (awarded in fiscal 2023) and $5 million for ASM America (fiscal 2024). The state also funds training, including $13 million for a semiconductor center at GateWay Community College and $4 million for technician apprenticeships.
Does Arizona give tax breaks to data centers?: Yes, but new applications are paused. A data center certified by the Arizona Commerce Authority gets state, county and local sales and use tax exemptions on qualifying equipment for up to 10 years, or 20 for a sustainable redevelopment project, if it invests at least $50 million in Maricopa or Pima County or $25 million elsewhere (at least $200 million for a newly built sustainable redevelopment project). A 2026 law, Laws 2026, Chapter 140, bars the Authority from accepting applications for new data centers, and bars new data centers from qualifying, from July 1, 2026 through June 30, 2029. In fiscal 2025, before the pause, the Authority preapproved 7 data centers, including Vantage Data Centers and Quality Technology Services, with at least $1.1 billion in combined minimum investment.
What did the Auditor General find about the Arizona Commerce Authority?: Its September 2023 sunset review found the Authority lacked documentation that it verified businesses met some requirements before approving nearly $11 million in incentives, spent more than $2.4 million on 5 private CEO Forums from 2018 to 2023, and lacked policies and procedures for nearly $100 million in broadband grants. The Authority agreed to the recommendations but wrote that all of the incentive recipients had met the requirements; the Auditor General said parts of that response misrepresented its work. In January 2024 the Attorney General found the forums violated the Arizona Constitution's Gift Clause. By August 2025, 6 of the audit's 23 recommendations were implemented and 15 were in process.