Earlier this year, the Arizona Department of Commerce Renewable Energy Incentive Program (REIP) took effect. The program provides a financially attractive package for renewable energy manufacturing firms.

Under the REIP program, companies can apply for income tax credits based on the dollar amount of capital investment and the number of new, full-time, above-median-wage jobs with health benefits that are created as a result of investment. Property tax incentives, which also depend on the size of the project and the wages that are paid, reduce applicable real property and personal property taxes for up to 15 years.

“The passage of [REIP] means Arizona is now able to compete with other Western states when attracting solar energy companies,” says Marc Hertzberg, senior vice president with Cassidy Turley BRE Commercial in Phoenix. “With more than 330 days of sun per year and lower than national average labor costs, we anticipate solar and other renewable energy companies to will relocate or open additional facilities in Arizona. The addition of this industry to the Valley is expected to bring high paying jobs and will help absorb some of the excess industrial market space currently available.”

Finocchiaro tells GlobeSt. that before the Glendale warehouse building leased to Linamar, it was evaluated by four other solar companies. “The Greater Phoenix Economic Council has been involved in bringing these companies to the area,” he adds.

Livonia, Mich.-based Tower Automotive, for example, leased 460,000 square feet at the former Rubbermaid manufacturing facility at 17300 W. Broadway Lane in Goodyear, AZ. The company, which historically supplied vehicle structural parts and assemblies, diversified its business by signing an agreement with Scottsdale-based Stirling Energy Systems to manufacture a faceted mirror component for the SunCatcher CSP for use in solar energy systems.

Tower Automotive, which will eventually employee 200 people at the 750,000-square-foot Goodyear facility, is eligible to apply to REIP.