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Value Proposition
Home to 2,843 manufacturing establishments including companies with a major presence in the region such as Intel, Honeywell, and Boeing. Major manufacturing sectors include Aerospace, Computer and Electronic Products, Transportation Equipment and Fabricated Metal Product.
Up to $20,000/job in refundable tax credit and $9,000 of corporate income tax credits per job. Also, business owners can take advantage of additional depreciation, receive sales tax abatement on electricity, find sales tax exemptions for machinery and equipment, and Foreign Trade Zone sites can reduce property tax by 73%.
Greater Phoenix has a total employment of 137,858 in manufacturing establishments.
Greater Phoenix had over 9,700 graduates in production programs in 2018 and over 7,300 graduates in computer science, math and engineering alone. Manufacturing specific programs at the high school, community college, and university level are also available in Greater Phoenix.
Greater Phoenix is substantially cheaper than major competitor markets. We’re a Right to Work state, there’s no inventory tax, and we have a 4.9% corporate income tax rate and 2.59% – 4.54% personal income tax rate.
Nationally Recognized Programs in Advanced Manufacturing
The companies listed have already realized the benefits of doing business in Greater Phoenix, including the region’s affordable operating environment and market advantages such as:
The companies shown below are only a fraction of the manufacturing companies located in Greater Phoenix and surrounding regions in Arizona. Greater Phoenix’s key infrastructure makes it easy for new and existing manufacturing companies to ship and receive high-quality products, unlike other major markets.
Why Choose Greater Phoenix for Advanced Manufacturing Start-ups or Relocation Purposes
The state offers a minimalist regulatory approach, no corporate franchise tax and is constitutionally recognized as a right-to-work state. From aggressive tax credits and incentives, to programs designed to increase access to capital, the region offers direct access to Arizona’s robust, pro-business climate.
Comparative Operating Advantages
- Minimal regulation
- Right-to-work state
- Low unionization
- 90 days or less permitting, guaranteed
- Low worker’s compensation and unemployment
- Foreign Trade Zone (AZ Property Tax Benefit)
- Military Reuse Zone
Lower Costs, Greater Value
- Proximity to large markets
- Incentives targeting manufacturers
- No inventory tax
- Aggressive depreciation schedules
- 100 percent of net operating loss may be carried forward for five years
- Sales tax exemptions on equipment and utilities used for manufacturing
Tax Overview
Greater Phoenix offers a competitive tax environment that makes it an ideal place for businesses to go to scale.
| State-local Tax Burdens as a Share of State Income | Total Tax Burden Per Capita |
| Arizona - 8.8% | $3,276 |
| California - 11.0% | $5,237 |
| Nevada - 8.1% | $3,349 |
| Oregon - 10.3% | $4,095 |
| Washington - 9.3% | $4,541 |
Ranking on Five Component Taxes
