POPULATION: 6,305,210 (2006)

LABOR FORCE: 2,953,249 (2006)

RIGHT TO WORK: Yes

TRADITIONAL INDUSTRIES: High-tech manufacturing (semiconductor and aerospace), software and information industries

EXPANDING INDUSTRIES: High-technology manufacturing, bioindustry, environmental technology, optics, plastics and advanced composites

COLLEGE GRADUATES: (Age 25 and over) 28% (2004)

BASIC BUSINESS TAXES:
Corporate Income Tax: 6.968 percent

Transaction Privilege and Use Tax: 5.6 percent state rate; additional county and city tax rates make total combined rates from 7.35 to 10.60 percent (state/county/city average rate is 8.57 percent)

Real and Personal Property Tax: $11.81/$100 (state average)

Personal Income Tax: 2.87–5.04 percent

Arizona has no corporate franchise tax, no business inventory tax, and no worldwide unitary tax. Virtually all professional and personal services are exempt from transaction privilege (sales) tax. Arizona allows a subtraction from income for dividents from controlled subsidiaries; allows an NOL to be carried forward for five subsequent taxable years; and has aggressive accelerated depreciation schedules for personal property.

BUSINESS INCENTIVES:
 Arizona Department of Commerce Job Training Program
Enterprise Zone Program
Private Activity Bonds
Foreign-Trade Zones
Military Reuse Zones
R&D Income Tax Credit
Pollution Control Tax Credit
Accelerated Depreciation
Lease Excise Tax Program
Economic Strengths Projects (ESP)
Tucson Empowerment Zone
Waste Reduction Assistance Program
Waste Reduction Initiative Through Education Funding
Commerce and Economic Development Commission Fund
Healthy Forest Enterprise Program
Motion Picture Production Tax Incentives
Small Business Investment Tax Credit
Solar Energy Tax Incentives Program
Small Business Capital Investment Tax Incentive Program (Angel Investment Program)