POPULATION: 6,629,455 (July 2008)

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 (Angel Investment Program)