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Business Climate

The City of Tucson, Pima County, and the State of Arizona, enjoy a reputation as having an excellent business climate.

This reputation is, based in part, upon the following:

Right-to-Work State. According to Article XXV , of the Arizona Constitution, “No person shall be denied the opportunity to obtain or retain employment because of non-membership in a labor organization, nor shall the State or any subdivision thereof, or any corporation, individual or association of any kind enter into any agreement, written or oral, which excludes any person from employment or continuation of employment because of non-membership in a labor organization. For more information, click here.

Favorable Tax Structure

  1. No Franchise Tax.
  2. No Business Inventory Tax.
  3. Corporate Income Tax Rate set at 4.9% in 2017.
  4. Starting 2017, a corporation without sales in Arizona, will have no Arizona income tax liability.
  5. Business Tax Credits which include Corporate Tuition Tax Credit, Health Insurance Premium Tax Credit, Renewable Energy for Self-Consumption, and University Research and Development Tax Credit. Some credits require pre-approval. For more information on Arizona Tax Structure, click here.

Workers’ Compensation Rates.  Arizona has consistently ranked in the top fifteen states for average Workers’ Compensation Rates. For more information, click here.

Unemployment Insurance Rates. Employers new to Arizona (other than a successor to a liable employer) are assigned a tax rate of 2.0 percent for a minimum of two calendar years. After that, you may be eligible for a higher or lower tax rate depending on:

  1. The amount of taxes you have paid;
  2. The amount of unemployment benefits paid to your former employees and charged to you;
  3. The average size of your annual taxable payroll.

For more information on unemployment insurance benefits click here.

Targeted Incentives – The City of Tucson, Pima County, and State of Arizona offer certain business incentives to assist qualified companies expand, relocate, or consolidate in Tucson. Some of the incentives are statutory, other are discretionary and competitive. For more information, click here.

Higher Education Excellence – Tucson is the home of Pima Community College and the internally recognized University of Arizona. For more information please use the links provided below.

Pima Community College
University of Arizona

Utility Costs and Reliability – The City of Tucson provides water service, Pima County provides wastewater service, Tucson Electric Power provides electric services, and Southwest Gas provides natural gas services. Numerous options exist for voice and data services, including Century Link, Comcast, and Cox Communications. For more information, click here.

Low Natural Disaster Risk – Tucson enjoys a low risk of catastrophic events associated with weather and other natural disasters. For more information, visit the Tucson Office of Emergency Management and Homeland Security, by clicking here.

Proximity to Mexico – the driving distance from the TUS to Nogales, Mexico, is estimated at 73 miles or 117 km. Interstate 19 provides the connection. For more information on the Nogales port of Entry, click here.


Immediate Assistance 

For immediate assistance on sites at TUS or RYN or to access TAA’s economic development services, please contact:

George W. Bootes III, CEcD, EDFP
Chief Economic Development Officer
Tucson Airport Authority
7250 S. Tucson Blvd., Suite #300
Tucson, Arizona  85756
520.573.8100
gbootes@flytucson.com


Connect with Economic Development

To join TAA’s economic development distribution list, please enter your e-mail address in the box below. You will be added to TAA’s economic development distribution list and periodically receive messages from the Chief Economic Developer Officer.
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Tucson Airport Authority
7250 South Tucson Boulevard, Suite 300
Tucson, AZ 85756
(520) 573-8100