Incentives approved Tuesday by the Tucson City Council are just part of a larger package of inducements Raytheon Missile Systems could reap if it follows through on expansion plans.
Pima County already has agreed to support a federal trade zone designation for Raytheon that could drop the company’s county property tax assessment by about $16 million over 10 years. The county also has committed to further improvements to nearby roads and development restrictions on nearby county-owned land.
The state has offered the company $5 million through the Arizona Commerce Authority’s deal-closing fund, known as Arizona Competes, Arizona Commerce Authority spokeswoman Susan Marie said.
Those funds are conditioned on applicants hitting hiring and wage goals, paid out incrementally as certain milestones are reached.
Raytheon also could qualify for tens of millions of dollars in additional state tax breaks.
Marie said the company will likely be eligible for the state’s Qualified Facility tax-credit program, which is aimed at manufacturing, research and development and headquarters facilities and capped annually at $70 million.
The refundable income-tax credit is calculated by the least of three measures — either 10 percent of an employer’s capital investment, $20,000 per new job or $30 million a year per employer.
For example, under the jobs calculation, if Raytheon adds 1,900 jobs with qualifying wages and health benefits, it would be eligible for $38 million in tax credits over time.
Raytheon had not applied for the Qualified Facility tax credit as of Tuesday, Marie said.