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PHOENIX (AP) - Legislation for new business and individual tax cuts is being considered by Arizona legislators as they try to end their annual session.

The centerpiece of a package that was the focus of months of negotiations between Republican legislators, business lobbyists and Gov. Jan Brewer's office is a phased-in 25 percent reduction in the state individual income tax on capital gains.

Capital gains are profits on investments, and supporters say the proposal should spur economic development.

The three-year capital gains reduction would begin in 2014 and reach an estimated $56.5 million in annual lost revenue and taxpayer savings by 2016.

That bill also contains small tax breaks for corporations.

A companion bill would provide a state sales tax subsidy for local governments building sewers and other infrastructure for new manufacturing plants.