POPULATION: 6,683,129 (July 2009)
LABOR FORCE: 3,165,458 (July 2009)
RIGHT TO WORK: Yes
TRADITIONAL INDUSTRIES: High-tech manufacturing (semiconductor
and aerospace), software
and information industries
EXPANDING INDUSTRIES: Renewable energy, high-technology
manufacturing, bio-industry, environmental
technology, optics,
plastics and advanced composites
COLLEGE GRADUATES: (Age 25 and over) 25.5% (2006)
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)
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 dividends from
controlled susidiaries, allows an NOL
to be carried forward for five subsequent
taxable years, and has aggressive
accelerated depreciation schedules
for personal property.
BUSINESS INCENTIVES
Renewable Energy Tax Incentive
Program
Solar Energy Tax Incentive Program
Arizona Innovation Accelerator
Program
Arizona Job Training Program
Enterprise Zone Program
Foreign-trade zones
Military reuse zones
R&D Income Tax Credit
Pollution Control Tax Credit
Accelerated depreciation
Tucson Empowerment Zone
Waste Reduction Assistance Program
Healthy Forest Enterprise Program
Motion Picture Production Tax
Incentive Program
Small Business Capital Investment
Tax Incentive Program
