CEO Guide to Site Selection

#4

Arizona

CEO Rank on Best & Worst States for Business

GRAND JOB GROWTH AND COLLEGE GRADS

According to the Small Business Jobs Index from Paychex and IHS Markit, Arizona led the nation in small business job creation in the fall of 2021, recovering more jobs than it lost since April 2020. Phoenix remains one of the top labor markets in the United States with a high concentration of college graduates. Tata Consultancies, LucidMotors, Facebook and Intel have all made announcements here in the past year.

“Lucid’s ongoing investment in Arizona represents an investment in good jobs and livelihoods for Arizonans now and in the future… We are proud to call the Lucid Air ‘Made In Arizona’ and look forward to many more innovations to come.”
Doug Ducey
Governor

TAXES

0 %

top corporate income tax

# 0

on the Tax Foundation’s State Business Tax Climate Index ranking

EDUCATION

0 %

of students graduated high school in 2019

0 %

of adults age 25 and older have a bachelor’s degree or higher

UNEMPLOYMENT RATE

0 %

RIGHT TO WORK STATE

Yes

QUALITY OF LIFE

# 0

POPULATION GROWTH

0 %

increase between 2010 and 2020

KEY INCENTIVES

Quality Jobs Tax Credit: Offers up to $9,000 in tax credits spread out over a three-year period for each new qualifying job.

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.

Qualified Facility Tax Credit: Offers a tax credit of up to 10% of the qualifying capital investment of $20,000 per job for projects up to $2 billion in a capital investmentin a manufacturing facility.

International Operations Center (IOC) Program: Offers utility tax relief for businesses that operate an International Operations Center (IOC) in Arizona that iscertified by the Arizona Commerce Authority.

EDCs

Arizona Commerce Authority
azcommerce.com

Greater Phoenix Chamber
phoenixchamber.com/economic-development

Sun Corridor Inc.
suncorridorinc.com

Arizona Regional Economic Development Foundation
aredf.org

HIGHLIGHTED PROGRAM OR INITIATIVE

The Arizona Advanced Technology Network is a first-of- its-kind partnership developed by Arizona’s employers, public sector and academic institutions to meet thedemand for high-tech manufacturing skills today and into the future. Through the network, select community colleges worked together to develop a unified, industry-recognized curriculum specifically designed for advanced manufacturing.

BIG DEALS

  • Tata Consultancy Services announced a $300 million investment and more than 220 new jobs at an expansion of its operations in Phoenix.
  • ElectraMeccanica broke ground on a $35 million manu- facturing facility and will create 500 jobs in Mesa.
  • KORE Power announced in July 2021 it will build a one million square foot lithium ion battery manufacturing facility in Maricopa County.
  • Lucid Motors announced in September 2021, the start of production of its Lucid Air at the Advanced Manu- facturing Plant in Casa Grande. AMP-1 will create more than6,000 jobs by 2029 and have an economic impact of more than $100 million.
  • Intel broke ground in September 2021 on two semicon- ductor facilities at the company’s Ocotillo campus in Chandler.
  • Facebook announced in August 2021 plans to build a one million square foot Facebook Mesa Data Center.

BIG COMPANIES

Eight Fortune 500 companies headquartered in state:

  • Avnet
  • Carvana
  • Freeport-McMoRan
  • Insight Enterprises
  • Magellan Health
  • Republic Services
  • Sprouts Farmers Market
  • Taylor Morrison

No 13: Arizona

No. 13

Arizona

Taxation and Regulations
Workforce Quality
Living Environment

Based on CEO Survey by ChiefExecutive.net

Key Metrics
Taxation and Regulations

  • State Corporate Income Tax Rate: 6.97%
  • Highest Personal Income Tax Rate: 4.54%

Workforce Quality

  • % with High School diploma or more: 83.8
  • % with Bachelor’s degree or more: 25.1
  • % with Advanced degree or more: 9.2
  • Patents per 100K: 29.96
  • % of Employed Represented by Unions: 8.1

Quality of Life

  • Hopsitals per 10K: 0.103
  • Elementary/Secondary Schools per 1000 people: 0.342
  • Violent Crimes per 100K: 468.71
Key Companies
  • Freeport-McMoran
  • Avnet
  • Republic Services
Other Highlights
  • Arizona fell to #11 in 2010 to #13 — the state took #8 in 2009
  • Arizona ranks 42nd in state debt per capita with $1882

Sources:
TaxFoundation.org
Statemaster.com
Bureau of Labor Statistics
U.S. Census Bureau
U.S. Patent and Trademark Office
The National Center for Public Policy and Higher Education