Below is a continuously updated list of good news arising from Tax Cuts and Jobs Act enacted by Republicans in 2017.
ACCORDING TO THE LATEST IRS DATA:
19% tax cut for Arizona households making between $25k – $50k. Arizona households with adjusted gross income between $25,000 and $50,000 saw their average federal income tax liability drop from $2,121.92 in 2017 to $1,781.69 in 2019, a 19% reduction in federal income tax liability.
20% tax cut for Arizona households making between $50k – $75k. Arizona households with adjusted gross income between $50,000 and $75,000 saw their average federal income tax liability drop from $5,279.02 in 2017 to $4,397.70 in 2019, a 20% reduction in federal income tax liability.
18% tax cut for Arizona households making between $75k – $100k. Arizona households with adjusted gross income between $75,000 and $100,000 saw their average federal income tax liability drop from $8,765.00 in 2017 to $7,409.36 in 2019, an 18% reduction in federal income tax liability.
Just a 9.8% tax cut for Arizona households making over $1 million. Democrats claim the tax cuts were for “the rich” but as shown by the data, middle income Arizonans saw a significantly greater tax cut than those earning over $1 million.
Arizona households earning over $1 million saw their federal income tax liability drop from $822,334.81 in 2017 to $749,021.75 in 2019, a reduction of just 9.8%.
Data from the Congressional Budget Office also shows that high-earning Americans pay a greater share of taxes than before enactment of the Tax Cuts and Jobs Act. In other words, TCJA actually made the tax code more progressive, though you won’t hear Democrats admit it.
The TCJA also contained numerous reforms that benefited Arizona households:
AZ households are no longer stuck paying the Obamacare mandate tax. The TCJA zeroed out the Obamacare individual mandate tax penalty, effective 2019. In 2017, 107,360 Arizona households paid the Obamacare individual mandate tax penalty. 96,540 (90%) of taxpayers earned less than $75,000. 84,120 households paid the Obamacare individual mandate tax penalty in 2018. 73,510 (87%) of taxpayers earned less than $75,000.
Doubled Standard Deduction. The TCJA doubled the standard deduction from $12,000 to $24,000 for taxpayers filing jointly and $6,000 to $12,000 for single filers. 2,710,480 AZ households took the standard deduction in 2018 including 2,648,910 households earning less than $200,000. 2,891,770 taxpayers took the standard deduction in 2019 including 2,820,410 taxpayers earning less than $200,000.
20% tax deduction for AZ small businesses. The TCJA created a new, 20% deduction for small businesses organized as pass-through entities (LLCs, sole proprietors, S-corporations, partnerships). 437,770 AZ taxpayers claimed the small business deduction in 2019 including 360,920 taxpayers earning less than $200,000. 360,020 taxpayers claimed the small business deduction in 2018 including 299,150 taxpayers earning less than $200,000.
Doubled Child Tax Credit. The TCJA doubled the child tax credit from $1,000 to $2,000. 852,860 AZ households took the child tax credit in 2019 including 801,190 households earning less than $200,000. 822,060 households took the child tax credit in 2018 including 775,080 households earning less than $200,000.
Utility Savings: If not for the TCJA, utility bills would be even higher. As a direct result (see citations in the list of companies below) of the TCJA’s corporate tax rate cut, Arizona residents are saving money on utility bills. Lower electric, water, and gas bills help households and small businesses operating on tight margins. For example, at least ten Arizona utilities reduced their customers’ bills (see below).
Note how Arizona businesses cite the tax cuts as a driver of new job creation and pay increases:
Sutter Masonry (El Mirage, Arizona) — Hourly wages were increased and over $50,000 in bonuses were distributed.
SmithCraft Signs (Phoenix, Arizona) — Employee bonuses, new equipment purchases:
I’m Nicole, and I run Smithcraft Signs. We are a veteran-owned, small manufacturing company. We’re a job shop.
And what tax reform means for me is what we can do for our team. To improve our capabilities, we’re buying new equipment. We issued a special bonus to our midlevel employees.
Deeann, in our accounting department told me that she is using the extra money for what she describes as a “dream bucket-list vacation” to visit her daughter who was recently discharged from the Navy who is now in Hawaii.
Phil and NOAZ is using the money for a bathroom remodel he has been planning for over 10 years.
I’ve very excited about what the future holds for us. And again, so many thanks. — April 12, 2018 White House event transcript
Lucid Moters Inc. (Casa Grande, Arizona) — The company built an EV production plant in an Opportunity Zone created by the Tax Cuts and Jobs Act:
Arizona’s Pinal County has purchased 500 acres of land that it plans to lease and eventually sell to Silicon Valley electric carmaker Lucid Motors Inc ., which plans to create a $700 million production facility on the site.
The plant in Casa Grande, Arizona, will focus be on the Lucid Air, an under-development all-electric luxury sedan that Lucid claims will have a 400-mile range and top speed of 200 mph when it hits the market next year. Lucid eventually plans to employ 2,300 people at the plant, which is expected to begin construction in the second quarter of this year.
Arizona plant moves forward
In Arizona, Pinal County stepped in to help the deal for Lucid’s new auto plant by consolidating the land under one ownership that eventually would be sold to the carmaker, Pinal County Manager Greg Stanley said. The county closed on the land at the end of 2018, spending $29.94 million through the issuance of bonds.
As part of the agreement, Lucid will pay $1.8 million per year in rent for the first four years of the agreement, and will buy the land in the fifth year, Stanley said. The county will break even on the deal.
Lucid is required to keep funds in an account that, if the plant does not come to fruition, will be used by the county to complete infrastructure improvements on the site to make it a shovel-ready industrial park.
“We have quite a bit of interest in the northern parcels,” said Jackob Andersen, president and CEO of Saint Holdings of the Central Arizona Commerce Park, which is also part of an opportunity zone. “We are open for business on the neighboring sites, we hope the others will get auxiliary uses.” — Feb. 13, 2019 Silicon Valley Business Journal article
Crooked Tooth Brewery (Tucson, Arizona) – New jobs and increased work with local non-profits:
The Vernons have been in the brewery business for about three years. Most of that time has fallen under the Craft Beverage Modernization Tax Reform Act passed in 2017.
These are things Vernon said he’s been able to do because of this tax break, like working with local nonprofits on events. – Dec. 7, 2019 KOLD News 13 article
Western Alliance (Phoenix, Arizona) – Pay raises of 7.5 percent for the lowest-paid 50% of employees; increased bonuses; increased 401(k) match:
Western Alliance, which has $20 billion in assets, plans to increase the base pay of the lowest-paid 50% of employees by 7.5% once the bill becomes law, the bank’s chief executive Robert Sarver said in an interview Wednesday. Bonuses will also go up, bringing the total pay increase for this group of employees to around 10%. These employees generally make $75,000 or less.
Western Alliance, which operates units including Bank of Nevada and Torrey Pines Bank, also plans to increase its 401(k) match from 50% of an employee’s contribution up to 6% of pay to 75% of an employee’s contribution up to that same level. The bank, which has about 1,700 total employees, also plans to improve maternity leave benefits, though Mr. Sarver declined to detail those changes. – Dec. 20, 2017 Wall Street Journal article excerpt
The Shop Beer Co. (Tempe, Arizona) – New job creation and equipment purchases, investment in the community:
Dylan DeMiguel is a partner at the The Shop Beer Co. in Tempe.
Originally he thought he’d head to law school, but it turns out his entrepreneurial spirit drew him into the booze business.
It’s booming, he says, thanks in part to a tax break that went into effect in 2018.
“We’re taking this money to fuel the growth of this company. We’re literally hiring people,” DeMiguel said. “We’re buying equipment. And we’re investing in our community.” – Dec. 8, 2019 KPNX 12 News article
CAVU Aerospace (Mesa, Arizona) — Construction of an aircraft component repair facility in an Opportunity Zone created by the Tax Cuts and Jobs Act:
CAVU Aerospace Inc. is opening a $5 million aircraft component repair facility in Mesa, with plans to hire up to 75 employees.
The Stuttgart, Arkansas-based aerospace company, which focuses on end-of-service aircraft dismantling, engine repair and aerospace maintenance, was founded in 2010.
Component repair is a new business for the company, and Mesa will be the first of this facility for the company, said Ken Kocialski, CAVU Aerospace’s managing partner.
“We’re very excited to get this operation started,” said Kocialski, who has lived in Chandler since the 1980s and will work out of the new facility. “This will bring our operation full circle.”
A Los Angeles-based investment firm purchased the 20 acres of land in an opportunity zone for $2.25 million in February. — August 1, 2019 Phoenix Business Journal article
Liberty Utilities(Phoenix, Arizona) – The utility is passing along tax savings to customers:
The Arizona Corporation Commission is following through on its promise to pass savings created by the Tax Cuts and Jobs Act to Arizona utility ratepayers. As of August, the effort has totaled $189,088,437.
The Commission has been working on rate adjustments every month since February. At the July Open Meeting, the Commission addressed federal tax adjustments for both Southwest Gas and Liberty Utilities with adjustments made to their revenue requirements of $20 million and $1.9 million respectively. – August 24, 2018 Prescott News Online
HT Metals (Tucson, Arizona) — New equipment purchases:
His Tucson-based company, HT Metals, cuts pieces for aerospace and medical device industries. In early May, Ruiz told a crowd gathered in Tempe to see Vice President Mike Pence that he recently spent a couple hundred thousand dollars on a new machine.
“And, we get to expense it immediately,” he said. — May 16, 2018 KJZZ/Rio Salado College/MCCCD article excerpt
Pivot Manufacturing (Phoenix, Arizona) — New equipment purchases:
Two high-speed machines arrived less than a month after the president signed the tax bill. The law lets Macias avoid paying federal tax on 20 percent of his company’s income. — May 16, 2018 KJZZ/Rio Salado College/MCCCD article excerpt
Pacific Oak Capital Advisors (Phoenix, Arizona) — Construction of affordable apartment units in downtown Phoenix in an Opportunity Zone created by the Tax Cuts and Jobs Act:
Thanks to downtown Phoenix’s apartment building boom, there are thousands of new places for people to live in the popular area. Unfortunately, many who work or go to college downtown can’t afford the pricey rents.
But three new apartment projects could help ease the rent crunch for hundreds of people who want to live near their job or school in central Phoenix.
An Arizona group is teaming with a national investor to develop three more affordable apartment projects in central Phoenix with almost 500 units. Rents for many of the apartments will be below the area’s average, which is more than $1,737 a month, according to Colliers International.
The new tax incentive for developing in lower-income areas designated as Opportunity Zones is spurring the development of the new apartments. — September 12, 2019 The Arizona Republic article
Mesa’s Falcon Field Airport, known for its rich history and as a major economic engine for the city, is adding at least 20 hangars to accommodate its growing clientele.
The municipal airport, which serves private and military aircraft, announced last week that it’s preparing for a 23-acre development — complete with ancillary offices and manufacturing spaces.
Davcon Aviation, LLC, and Mesa Hangar, LLC, will construct the phased project on more than 1 million square feet of vacant city land on the northwest side of the airport.
“We are really excited about it,” said airport Director Corinne Nystrom. “One of our big missions has been to finish developing the airport with a strong presence of hangars and aviation businesses and this is exactly what we’ve been looking for. It’s a big win for mesa.”
The land will be leased for 40 years, and the initial design concept estimates that the hangars will range from 5,000 square feet to 60,000 square feet.
The number and size of the hangars will vary, depending on the preferences of the new tenants, and will offer high ceilings and wide doors.
The hangars will seek to accommodate corporate jets and specialized fixed-wing and helicopter uses, explained Lynn Spencer, airport economic development project manager.
“One of the things that is so exciting about getting the new hangars is that a lot of the inventory will allow us to have a new stock of facilities that can attract a different variety of businesses and size aircrafts,” she said.
“This is going to allow for more potential businesses and jobs to come here,” Spencer added.
The project is anticipated to cost more than $30 million, but because the airport is self-sustaining, it won’t be dipping into any of the city’s general fund.
The U.S. Treasury Department designated Falcon Field as an “opportunity zone,” meaning it’s an economically-distressed community where new investments could be eligible for preferential tax treatment.
Opportunity Zones are designed to spur economic development and job creation, according to the federal Internal Revenue Service website. — May 20, 2019 East Valley Tribune article
Banyan Residential (Scottsdale, Arizona) — New construction on a vacant lot with apartments, retail, and office space, located in an Opportunity Zone created by the Tax Cuts and Jobs Act:
Banyan Residential announced the start of construction on the long-anticipated Scottsdale Entrada development this morning. Located at the northeast corner of 64th Street and McDowell Road, Scottsdale Entrada will revitalize a long vacant 33-acre lot with a vibrant mixed-use campus, including 736 apartment units, 250,000 square feet of office space, 5,000 square feet of retail and ample public open space. The project is located in an Opportunity Zone, part of a revitalization program formed under the Tax Cuts and Jobs Act of 2017 and will be developed with program-compliant funding.
“Because of its central location and proximity to Phoenix, this project is critical to the economic prosperity and urban renaissance of the area and surrounding neighborhoods,” said Mayor Lane. “As the name conveys, this is a major entry point to Scottsdale. We are very excited for construction to start.” — March 27, 2020 Vertical News article
Caliber (Phoenix, Arizona) — Construction of a behavioral health clinic located in an Opportunity Zone created by the Tax Cuts and Jobs Act:
The 96-bed facility will be occupied by Dr. Cameron Gilbert and his company, Medical Behavioral Hospital of Phoenix LLC., and will care for patients struggling with medical and psychiatric conditions. Caliber purchased the facility, located near 14th Street and McDowell Road, for $10 million and will complete $9.5 million of renovations in the next year.
“This is a great example of how opportunity zones can truly make a positive impact on communities by enabling projects that are profitable, yet otherwise may not have attracted traditional funding,” said Chris Loeffler, CEO and co-founder of Caliber-The Wealth Development Company. “The clinic is expected to bring 80 high-income jobs into downtown Phoenix and, more importantly, serve a population in desperate need for advanced care.”
The clinic is the fourth investment to be included in the Caliber Tax Advantaged Opportunity Zone Fund, LP. and is one of the first healthcare opportunity zone properties across the country. — August 7, 2019 AZ Big Media article
San Tan Brewing (Chandler, Arizona) – The Tax Cuts and Jobs Act help the company expand into distilled spirits:
Anthony Canecchia owns San Tan Brewing, a company that produces large quantities of beer and a small amount of distilled spirits.
Canecchia and his team had been experimenting with spirits for a while before they put them on the market. In 2017, considering the tax cut, it seemed like a natural time to start production, he says. San Tan Distilling started selling its spirits, such as Saint Anne’s vodka and Sacred Stave whiskey and bourbon, in 2018. – Dec. 20, 2019 The Arizona Republic article
Rastegar Property Company, LLC (Phoenix, Arizona) — Construction of an apartment complex in an Opportunity Zone created by the Tax Cuts and Jobs Act:
“The Phoenix metropolitan area is experiencing some of the most tremendous job growth in the country, and with that comes significant demand for residential and commercial properties,” said Ari Rastegar, CEO of Rastegar Property. “In addition to its attractive size and location, the property also falls within a designated opportunity zone, a program through which the state of Arizona is encouraging investment and development in the Phoenix metropolitan area.” — July 17, 2019 Rastegar Property press release
Helio Basin Brewery (Phoenix, Arizona) – The Tax Cuts and Jobs Act allowed the brewery to expand:
Hazer opened his brewery a little more than three years ago, before the tax break was put in place. “The first year we had the full tax and then the last couple we’ve had the nice tax,” he said. “Basically, when that tax break happened, we started to launch into some of the bigger stores, can products. We wouldn’t have been able to do that even though it doesn’t seem like a lot of money.” – Dec. 5, 2019 AZFamily article
Pacific Oak Capital and Defer Gain (Phoenix, Arizona) — Construction of an affordable housing complex in downtown Phoenix, located in an Opportunity Zone created by the Tax Cuts and Jobs Act:
Three apartment complexes are headed to an Opportunity Zone in downtown Phoenix, addressing the need for affordable housing. These projects are valued at $61 million.
Investment company Pacific Oak Capital and Defer Gain, an Arizona-based real estate development company specializing in Opportunity Zone investments, have announced a joint venture to develop, finance, and operate multi-family, commercial, and industrial income-producing properties in Arizona Opportunity Zones.
In this first phase, three multi-family housing complexes are being built in downtown Phoenix, the 241-unit St. Ambrose Apartments and the 84-unit Presidential Apartments, and another housing development called Imperial Apartments.
“It’s exciting to see Opportunity Zone developments providing support to a critical component of our state’s economy — the workforce,” said Sandra Watson, President and CEO of the Arizona Commerce Authority. “We thank Pacific Oak and Defer Gain for advancing these three projects in downtown Phoenix neighborhoods.”
“Adding quality housing is a top priority for our city. I am excited to see new housing, including much-needed workforce units, near our key job corridors in the downtown and airport area,” Phoenix Mayor Kate Gallego said. — August 16, 2019 Housing Wire article
JMA Ventures LLC (Phoenix, Arizona) — Construction of an apartment community located in an Opportunity Zone created by the Tax Cuts and Jobs Act:
San Francisco-based JMA Ventures LLC is on track to break ground next week for a $75 million apartment community in the warehouse district in downtown Phoenix.
The last time the developer bought land in downtown Phoenix — about four blocks away from its current location at Fourth and Buchanan streets — it was 20 years ago.
Newmark Knight Frank (Nasdaq: NMRK) arranged $51.9 million in construction financing for the 278-unit apartment community, with the rest coming from JMA Ventures and “opportunity zone” funding. — August 19, 2019 Phoenix Business Journal article
U-Haul (Headquarters in Phoenix, with many locations statewide) – $1,200 bonus for full-time employees, $500 for part-time employees; over 28,000 workers will receive a bonus:
Officials with U-Haul say Friday its employees will receive a one-time bonus, as a result of the tax cut bill that was signed by President Donald Trump.
According to a statement, full-time team members will get a $1,200 bonus, while part-time employees will get $500. The bonuses, which will be issued by the end of February, will cost the company $23 million.
Officials say over 28,000 workers will benefit from the bonus, with more than 3,800 of those in Arizona. – Feb. 9, 2018 Fox 10 Phoenix news article
YAM Worldwide (Scottsdale, Arizona) — $2,000 bonuses for the 595 employees who have been with the company more than six months; $1,000 bonuses for the 131 employees who have been with the company less than six months. More than $1.3 million in bonuses were paid:
American entrepreneur and philanthropist Bob Parsons today announced that in celebration of the passage of the GOP tax plan, all 725 YAM Worldwide employees will receive additional bonuses. The 594 staffers who have been with the company for more than six months will receive $2,000, and the remaining 131 employees who have been on the YAM Worldwide team six months or less will receive $1,000 each. The more than $1.3 million in bonuses will be distributed today.
“The passage of the tax credit is a catalyst for explosive economic growth. On a massive scale, the lowered federal tax burden on businesses will increase investment, entrepreneurship and corporate philanthropy,” said Parsons. “I’ve always believed in sharing good news and have decided to celebrate the tax plan by mgiving back to my staff.” – Dec. 17, 2017 YAM Worldwide press release
Data Sales Co., Inc. (Scottsdale, Arizona) – $1,000 bonuses for all 80 employees:
Data Sales Co., Inc. announced today that the Company will celebrate the recent passage of tax reform legislation by distributing to all 80 plus employees a special bonus of $1,000 each. Data Sales Co. will benefit from the new tax law lowering the corporate tax rate from 35 percent to 21 percent:
“Our hard-working employees make this company succeed, and we wanted them to share in the savings the company will see and also help grow our economy. Today I’m announcing that every employee will receive a cash bonus of $1,000 each,” said Paul Breckner, President of Data Sales Co. “I also want to thank our local Congressman, Jason Lewis, for his consistent advocacy of tax reform and seeing it through to becoming law. With the majority of our 80+ strong workforce here in Burnsville, I’m pleased that the benefits of tax reform will be felt at home.”
Background on tax reform bonuses and Data Sales Co.:
All employees, whether full-time or part-time, hourly, salaried, commission or non-commission will receive the bonus to show our appreciation and heartfelt thanks for their service. We believe this tax reform will be good for Data Sales, spur economic growth, continue to grow jobs and keep unemployment at an all-time low. – Jan. 22, 2018 Data Sales Co., Inc. press release
Virtua Partners (Phoenix, Arizona) — Launched an Opportunity Zone Fund, raising $200 million for the fund:
This groundbreaking fund is the first vehicle designed to invest in the newly created Opportunity Zones — one of the lesser known provisions of the Tax Cuts and Jobs Act of 2017 (the Tax Reform Act). Virtua Opportunity Zone Fund I, LLC aims to raise $200 million and is designed to utilize the tax-savings opportunities created by the tax-reform law. — June 20, 2018 Virtua Partners press release
Pacific Oak Capital and Defer Gain (Phoenix, Arizona) — Construction of affordable multi-family, commercial, and industrial properties, located in an Opportunity Zone created by the Tax Cuts and Jobs Act:
“Three apartment complexes are headed to an Opportunity Zone in downtown Phoenix, addressing the need for affordable housing. These projects are valued at $61 million.
In this first phase, three multi-family housing complexes are being built in downtown Phoenix, the 241-unit St. Ambrose Apartments and the 84-unit Presidential Apartments, and another housing development called Imperial Apartments.” — August 16, 2019 Housing Wire
Quail Creek Water (Sahuarita, Arizona) – The utility is passing along tax savings to customers:
The Arizona Corporation Commission is following through on its promise to pass savings created by the Tax Cuts and Jobs Act to Arizona utility ratepayers. As of August, the effort has totaled $189,088,437.
At the August Open Meeting, the Commission addressed tax adjustments for both the Quail Creek and Bermuda Water Companies. The largest tax adjustment occurred earlier this year when the Commission approved a $119 million dollar reduction to benefit APS customers. – August 24, 2018 Prescott News Online
Bermuda Water Company (Fort Mohave, Arizona) – The utility is passing along tax savings to customers:
The Arizona Corporation Commission is following through on its promise to pass savings created by the Tax Cuts and Jobs Act to Arizona utility ratepayers. As of August, the effort has totaled $189,088,437.
At the August Open Meeting, the Commission addressed tax adjustments for both the Quail Creek and Bermuda Water Companies. The largest tax adjustment occurred earlier this year when the Commission approved a $119 million dollar reduction to benefit APS customers. — August 24, 2018 Prescott News Online
Arizona Public Service (Phoenix, Arizona) — The utility is passing along tax savings to customers:
“APS has requested the Arizona Corporation Commission approve a $119 million bill reduction for customers, based on federal corporate tax cuts, effective February 1, 2018.
If approved, the $119 million decrease will offset the $95 million revenue increase that resulted from APS’s last rate review. The savings of $0.004258/kWh will be passed directly to customers through the Tax Expense Adjustor Mechanism (TEAM), a new adjustor mechanism that was included in the company’s rate review, and customer savings will vary with actual energy usage. APS customers would receive the credit on their monthly bill. – Jan. 9, 2018 Arizona Public Service press release
Tucson Electric Power Company (Tucson, Arizona) – The utility is passing along tax reform savings to customers:
EP and its sister utilities “believe it is in the public interest to share a substantial portion of the expected income tax savings with their respective customers on an expedited basis,” the companies said.
TEP says its proposals may include a fast-tracked regulatory approval process to implement a billing credit as soon as possible; a higher seasonal credit that would help offset customer bills during higher usage months; or bill credits that would decline over time while still smoothing the bill impacts of future rate requests. – Feb. 2, 2018 Tucson.com article excerpt
EPCOR USA (Phoenix, Arizona) — The utility is passing along tax cut savings to customers:
More than 57,000 EPCOR wastewater customers will receive more than $1.1 million in federal corporate tax cut savings, reducing the amount of their monthly wastewater bill starting with the July 2018 billing cycle.
Today, the Arizona Corporation Commission (ACC) approved EPCOR’s request to refund $1,106,392 in tax reform savings to all of the company’s residential and commercial wastewater customers.
“We are extremely pleased to help our wastewater customers save more than $1 million each year, and it’s important to us that we put this into effect as soon as possible,” commented Joe Gysel, President of EPCOR USA, Arizona’s largest regulated water utility. “All our customers deserve to share in the savings generated by federal tax reform. It’s positive for them, for their communities and for our state.” — June 12, 2018 EPCOR press release
Alliant Gas (Payson, Arizona) – The utility is passing along tax reform savings to customers:
The Arizona Corporation Commission ordered Alliant Gas to file a rate case for its Page and Payson Divisions as part of the company’s action to refund customers the income tax reductions resulting from The Tax Cuts and Jobs Act of 2017. — Alliant Gas website
Southwest Gas — (Phoenix, Arizona) – The utility is passing along tax reform savings to customers:
The Tax Cuts and Jobs Act of 2017 reduced the federal income tax rate for corporations like Southwest Gas, and we’re passing the savings on to you. — Southwest Gas website
Arizona Water Company (Phoenix, Arizona) – The utility is passing along tax reform savings to customers:
Arizona Water Company presented a plan to the Arizona Corporation Commission Tuesday to reduce customer rates in its western group, which includes Casa Grande, Coolidge and Stanfield.
Commissioners want to assure federal tax reform law directly benefits utility customers by passing federal tax savings on to the ratepayers, according to a press release. Commissioners have voted to award federal tax reform money directly to utility customers.
Going forward, commissioners voted to ensure a 3.6-percent rate reduction in monthly rates for the western group and a 4-percent reduction in monthly rates for the northern group. — March 15, 2018 Casa Grande Dispatch excerpt
UNS Electric, Inc. (Prescott, Arizona) – The utility is passing along tax reform savings to customers:
The purpose of the Tax Adjustment is to address changes in the Company’s federal income tax rate until such changes are reflected in the Company’s next general rate case. The savings will be returned through a combination of (i) a per kilowatt-hour (“kWh”) bill credit for all customer classes and (ii) a regulatory liability that reflects the deferral of the return of a portion of the savings (which will be returned to customers in the Company’s next rate case).
For 2019 (and subsequent years), the tax savings to be returned to customers will be calculated as for 2018 and will reflect the effective federal income tax rate applicable for that tax year. — UNS Electric, Inc. document
AT&T – $1,000 bonuses to 1,510 Arizona employees; Nationwide, $1 billion increase in capital expenditures:
Today, Congress approved legislation representing the first comprehensive tax reform in a generation. The President is expected to sign the bill in the coming days.
Once tax reform is signed into law, AT&T* plans to invest an additional $1 billion in the United States in 2018 and pay a special $1,000 bonus to more than 200,000 AT&T U.S. employees — all union-represented, non-management and front-line managers. If the President signs the bill before Christmas, employees will receive the bonus over the holidays.
“Congress, working closely with the President, took a monumental step to bring taxes paid by U.S. businesses in line with the rest of the industrialized world,” said Randall Stephenson, AT&T chairman and CEO. “This tax reform will drive economic growth and create good-paying jobs. In fact, we will increase our U.S. investment and pay a special bonus to our U.S. employees.”
Since 2012, AT&T has invested more in the United States than any other public company. Every $1 billion in capital invested in the telecom industry creates about 7,000 jobs for American workers, research shows. — Dec. 20, 2017 AT&T Inc. press release
Apple (Apple store locations in Chandler, Gilbert, Glendale, Phoenix, Scottsdale, Tucson ) — Arizona-based Apple employees received $2,500 bonuses in the form of restricted stock units. Nationally, $30 billion in additional capital expenditures; 20,000 new employees will be hired; increased support of coding education and science, technology, engineering, arts, and math; increased support for U.S. manufacturing.
Wal-Mart – Arizona employees at 113 Walmart stores received tax reform bonuses, wage increases, and expanded maternity and parental leave. Walmart employees who adopt children will be given $5,000 to help cover expenses.
Lowe’s — 4,000 employees at 32 stores in Arizona. Employees will receive bonuses of up to $1,000 based on length of service; expanded benefits and maternity/parental leave; $5,000 of adoption assistance.
“This incremental investment in our associates was made possible by the new tax reform bill.” — Jan. 25, 2018 Home Depot press release
Waste Management Inc. (Multiple locations in Arizona) — $2,000 bonuses:
In light of the meaningful contributions of its employees and the new U.S. corporate tax structure, the company will distribute US $2,000 in 2018 to every North American employee not on a bonus or sales incentive plan; that includes hourly and other employees.
“We are about to get a tax benefit as our U.S. corporate tax rate goes from 35 percent to 21 percent. In considering how to best spend that, we wanted to find a way to help grow our economy, which in turn, will help grow our business, and give some of the tax savings back to those hardworking employees who do not get the opportunity to participate in our salaried incentive plans,” said Jim Fish, president and chief executive officer, Waste Management.
“So, we are offering each North American hourly full-time employee and salaried employee who does not participate in any sales incentive or bonus plan during 2018, a cash bonus of US $2,000 to show our appreciation to so many of our valued employees while growing our business and returning a good portion of the tax savings directly to the overall economy,” he continued. – Jan. 10 2018, Waste Management Inc. press release excerpt
The 2017 Tax Act benefited the Company in the fourth quarter and full year Fiscal 2018. The Company expects to continue to benefit from the 2017 Tax Act going forward, primarily due to the lower U.S. corporate income tax rate. As a result of the estimated cash benefit related to the 2017 Tax Act, the Company is taking the following actions:
- A one-time, discretionary bonus to eligible, non-bonus-plan Associates, globally
- An incremental contribution to the Company’s defined contribution retirement plans for eligible Associates in the U.S. and internationally
- Instituting paid parental leave for eligible Associates in the U.S.
- Enhancing vacation benefits for certain U.S. Associates
Made meaningful contributions to TJX’s charitable foundations around the world to further support TJX’s charitable giving. – Feb. 28, 2018 The TJX Companies Inc. press release excerpt
FedEx (Multiple locations in Arizona) – More than $3.2 billion in wage increases, bonuses, pension funding due to the recent tax cuts. Pay raises, bonus increases, pension plan increases, and at least $1.5 billion in capital expenditures:
“FedEx Corporation is announcing three major programs today following the recently enacted U.S. Tax Cuts and Jobs Act:
- Over $200 million in increased compensation, about two-thirds of which will go to hourly team members by advancing 2018 annual pay increases by six months to April 1st from the normal October date. The remainder will fund increases in performance- based incentive plans for salaried personnel.
- A voluntary contribution of $1.5 billion to the FedEx pension plan to ensure it remains one of the best funded retirement programs in the country.
- Investing $1.5 billion to significantly expand the FedEx Express Indianapolis hub over the next seven years. The Memphis SuperHub will also be modernized and enlarged in a major program the details of which will be announced later this spring.
FedEx believes the Tax Cuts and Jobs Act will likely increase GDP and investment in the United States.
The company has made no change to its fiscal 2018 earnings or capital expenditure guidance as issued on December 19, 2017 as a result of these actions.” – Jan. 26, 2018 FedEx press release
Comcast (Multiple locations in Arizona) — $1,000 bonuses; nationally, at least $50 billion investment in infrastructure in next five years.
Chipotle Mexican Grill (Multiple locations in Arizona) – Bonuses ranging from $250 to $1,000; increased employee benefits; nationally, $50 million investment in existing restaurants.
Starbucks Coffee Company (Multiple locations in Arizona) – $500 stock grants for all retail employees, $2,000 stock grants for store managers, and varying plan and support center employee stock grants. Nationally, 8,000 new retail jobs; an additional wage increase this year, totaling approximately $120 million in wage increases, increased sick time benefits and parental leave.
McDonald’s (280+ locations in Arizona) – Increased tuition investments which will provide educational program access for 400,000 U.S. employees. $2,500 per year (up from $700) for crew working 15 hours a week, $3,000 (up from $1,050) for managers, and more:
McDonald’s Corporation today announced it will allocate $150 million over five years to its global Archways to Opportunity education program. This investment will provide almost 400,000 U.S. restaurant employees with accessibility to the program as the company will also lower eligibility requirements from nine months to 90 days of employment and drop weekly shift minimums from 20 hours to 15 hours. Additionally, McDonald’s will also extend some education benefits to restaurant employees’ family members. These enhancements underscore McDonald’s and its independent franchisees’ commitment to providing jobs that fit around the lives of restaurant employees so they may pursue their education and career ambitions.
The Archways to Opportunity program provides eligible U.S. employees an opportunity to earn a high school diploma, receive upfront college tuition assistance, access free education advising services and learn English as a second language.
“Our commitment to education reinforces our ongoing support of the people who play a crucial role in our journey to build a better McDonald’s,” said Steve Easterbrook, McDonald’s President and CEO. “By offering restaurant employees more opportunities to further their education and pursue their career aspirations, we are helping them find their full potential, whether that’s at McDonald’s or elsewhere.”
Accelerated by changes in the U.S. tax law, McDonald’s increased investment in the Archways to Opportunity Program includes:
- Increased Tuition Investment:
- Crew: Eligible crew will have access to $2,500/year, up from $700/year.
- Managers: Eligible Managers will have access to $3,000/year, up from $1,050.
- Participants have a choice for how they apply this funding – whether it be to a community college, four year university or trade school. There is no lifetime cap on tuition assistance – restaurant employees will be able to pursue their education and career passions at their own pace. The new tuition assistance is effective May 1, 2018 and retroactive to January 1, 2018.
- Lowered Eligibility Requirements: Increase access to the program by lowering eligibility requirements from nine months to 90 days of employment. In addition, dropping from 20 hours minimum to 15 hours minimum (roughly two full time shifts) per week to enable restaurant employees more time to focus on studies.
- Extended Services to Families: Extension of Career Online High School and College Advisory services to restaurant employees’ family members through existing educational partners Cengage and Council for Adult and Experiential Learning (CAEL).
- Additional Resources: Career exploration resources for eligible restaurant employees to be available later this year.
- Creation of an International Education Fund: Grants to provide local initiatives and incentives in global markets to further education advancement programs.
“Since its inception, Archways to Opportunity was meant to match the ambition and drive of restaurant crew with the means and network to help them find success on their own terms,” said David Fairhurst, McDonald’s Chief People Officer. “By tripling tuition assistance, adding education benefits for family members and lowering eligibility requirements to the equivalent of a summer job, we are sending a signal that if you come work at your local McDonald’s, we’ll invest in your future.”
After launching in the U.S. in 2015, Archways to Opportunity has increased access to education for over 24,000 people and awarded over $21 million in high school and college tuition assistance. Graduates have received college degrees in Business Administration, Human Resources, Communications, Accounting, Microbiology and more. – March 29, 2018 McDonald’s Corporation press release excerpt
Wells Fargo – 181 bank locations in Arizona; raised base wage from $13.50 to $15.00 per hour; nationally, $400 million in charitable donations for 2018; $100 million increased capital investment over the next three years.
Note: If you know of other Arizona examples, please email John Kartch at [email protected]
The running nationwide list of companies can be found at www.atr.org/list