“Arizona is open for business and our economy is booming. It’s not by accident: Arizona’s pro-business policies, low taxes and light regulations are delivering more opportunities and bigger paychecks for Arizona workers” —Gov. Doug Ducey
Grand Growth in the Grand Canyon State
Arizona remains one of the fastest-growing states in the nation and also has one of the top-five fastest growing economies, with GDP up 4% in 2018. While top sectors include aerospace and electronics manufacturing, a growing financial services hub is emerging in Phoenix. Since Gov. Ducey issued an executive order in March 2018 clarifying that self-driving vehicles are allowed on state roadways, Arizona has also become a proving ground for the new technology. Companies such as Waymo are already testing and operating 600 vehicles on the state roadways, and in October 2018, the state launched the Institute for Automated Mobility, a consortium focused on autonomous vehicle research, policy and safety.
Quality Jobs Tax Credit: Offers up to $9,000 in state income or premium tax credits spread out over a three- year period for each new qualifying job.
Job Training Grants: Offers reimbursement of up to 75% of the approved training costs for eligible employees, up to $8,000 for each located in rural areas.
Qualified Facility Tax Credit: Offers a refundable tax credit equal to 10% of the capital investment for up to $20,000 per qualified new job created for a manufacturing or manufacturing research-related facility.
Research and Development Tax Credit: Offers an income tax credit for investing in R&D in Arizona. Credit is non-refundable and equal to 24% of the first $2.5 million in qualifying expenses, plus 15% of the qualifying expenses in excess of $2.5 million.
Arizona Association for Economic Development: aaed.com
Arizona Commerce Authority: azcommerce.com
Greater Phoenix Economic Council: gpec.org
Southeast Arizona Economic Development Group: saedg.org
Arizona Regional Economic Development Foundation: aredf.org
Highlighted Program or Initiative
Maricopa County Community College District, Central Arizona College and Pima Community College District has formed a first-of-its kind partnership to prepare the local workforce for careers in manufacturing. Schools in the Arizona Advanced Technology Network offer a standard curriculum that meets rigorous third-party industry credentialing standards. It supports advanced technical job growth in the 130-mile corridor between Phoenix and Tucson where 90 percent of the state’s manufacturers operate.
Deloitte announced in June 2018 a capital investment of $37.5 million and 2,500 jobs at a delivery center in Gilbert.
TuSimple announced in September 2018 a $5 million expansion of its Tucson location with 500 jobs.
Infosys announced in September 2018 the establishment of an $18 million technology and innovation hub and 1,000 new jobs in Phoenix.
Voya Financial announced in November 2018 1,000 new jobs and a $60 million office in Phoenix.
Microsoft announced in July 2019 plans to build three data centers in Goodyear and El Mirage with a potential capital investment of hundreds of millions.
Six Fortune 500 companies are headquartered in the state:
“With impressive defense and tech infrastructure already in place, access to the nation’s top talent, and a high standard of living, Arizona is a force to be reckoned with in cybersecurity.” —John Zanni, CEO, Acronis SCS
“Phoenix’s prime geographic location coupled with Arizona’s skilled workforce and business-friendly environment provides the essential resources for future growth and success. Expanding in the Phoenix area will enable us to provide greater service to our customers across time zones.” —Rodney O. Martin, Jr., Chairman and CEO, Voya Financial
“Arizona has actively supported the research and development of autonomous vehicles, and we are pleased to be expanding our footprint in the state. We thank Governor Ducey and our community partners for their generous support.” —Xiaodi Hou, CTO and co-founder, TuSimple