Arizona Department of Commerce

Four of Commerce’s 13 major functions could be eliminated, primarily because other programs provide similar services. The Legislature could also eliminate four other programs; however, there are some advantages to retaining them in some form. Auditors further identified five major functions that should be retained because they provide valuable services, but could be transferred to other agencies, and the Legislature could eliminate Commerce’s administrative functions if it decides to sunset the Department.  

The Legislature should also consider taking steps to eliminate any of the five Commerce-administered tax credit programs that are not cost-effective. Companies claimed at least $65 million in these income tax credits from 1994 to 2000, and retain another $60 million in credits that can be used on future tax returns. However, literature suggests that these types of incentives have little impact on economic growth.