POPULATION:6,581,054
LABOR FORCE: 3,034,166
RIGHT TO WORK: Yes
TRADITIONAL INDUSTRIES:High-tech manufacturing (semiconductor and aerospace), software and information, financial industries
EXPANDING INDUSTRIES: Renewable energy, high-technology manufacturing, bioindustry (medical devices), environmental technology, optics, plastics and advanced composites, and financial
COLLEGE GRADUATES: (Age 25 and over) 36.0% (2013 Census ACS, includes Associates Degrees; 27.4% without)
BASIC BUSINESS TAXES:
Corporate Income Tax: 6.5 percent (2015: 6.0%; 2016: 5.5%; 2017: 4.9%)
State Level Sales Tax: 5.6 percent (city and county taxes may apply)
Personal Income Tax: 2.59-4.54 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) taxes as is equipment used directly in manufacturing; Arizona allows a subtraction from income for dividends from controlled subsidiaries, allows an NOL to be carried forward for twenty subsequent taxable years, and has aggressive accelerated depreciation schedules for personal property.
BUSINESS INCENTIVES:
Renewable Energy Tax Incentive Program
Qualified Facilities Program
Computer Data Center Program
Arizona Job Training Program
Quality Jobs Tax Credit Program
R&D Income Tax Credit
Sales and Use Tax exemptions for Manufacturers
Renewable Energy Production Tax Credit
Foreign-trade zones (with property tax benefit)
Military reuse zones
Healthy Forest Enterprise Program
Commercial/Industrial Solar Program
Pollution-Control Tax Credit
Solar Liquid Fuel Tax Credit
Enhanced Accelerated Depreciation
Small Business Capital Investment Tax Incentive Program (Angel Investment Program)
Arizona Innovation Accelerator Fund Program
Arizona STEP Program
Arizona Innovation Challenge
Arizona Fast Grant
SBIR/STTR Proposal Training
Tucson Empowerment Zone
Waste Reduction Assistance Program
Source: U.S. Bureau of Economic Analysis, GDP by Manufacturing Segment, 2012 (accessed November 2014)