1.
2
BUSINESS AND INVESTMENT CLIMATE IN THE UNITED STATES
CONTENTS
FOREWORD
BY
CHANDRAJIT
BANERJEE
DIRECTOR
GENERAL
CONFEDERATION
OF
INDIAN
INDUSTRY
4
FOREWORD
BY
VINAI
THUMMALAPALLY
EXECUTIVE
DIRECTOR,
SELECTUSA
U.S.
DEPARTMENT
OF
COMMERCE
5
U.S.
STATES
ALABAMA
6
ALASKA
9
ARIZONA
11
ARKANSAS
14
CALIFORNIA
17
COLORADO
20
CONNECTICUT
24
DELAWARE
27
DISTRICT
OF
COLUMBIA
29
FLORIDA
32
GEORGIA
35
HAWAII
38
IDAHO
41
ILLINOIS
44
INDIANA
47
IOWA
50
KANSAS
53
KENTUCKY
56
LOUISIANA
59
MAINE
62
MARYLAND
65
MASSACHUSETTS
68
MICHIGAN
71
MINNESOTA
74
MISSISSIPPI
77
MISSOURI
80
MONTANA
83
NEBRASKA
86
NEVADA
89
NEW
HAMPSHIRE
91
NEW
JERSEY
94
NEW
MEXICO
97
NEW
YORK
100
NORTH
CAROLINA
103
NORTH
DAKOTA
107
OHIO
110
OKLAHOMA
113
OREGON
116
PENNSYLVANIA
119
RHODE
ISLAND
122
SOUTH
CAROLINA
125
SOUTH
DAKOTA
128
TENNESSEE
131
TEXAS
134
UTAH
137
VERMONT
140
VIRGINIA
143
WASHINGTON
146
WEST
VIRGINIA
149
WISCONSIN
152
WYOMING
155
U.S.
TERRITORIES
AMERICAN
SAMOA
158
GUAM
161
PUERTO
RICO
164
U.S.
VIRGIN
ISLANDS
167
FREQUENTLY
ASKED
QUESTIONS
170
INVESTMENT
RESOURCES
172

2.
3
BUSINESS AND INVESTMENT CLIMATE IN THE UNITED STATES
©
2015
Confederation
of
Indian
industry
(CII).
All
rights
reserved.
The
Confederation
of
Indian
Industry
is
a
body
Registered
under
the
Societies
Registration
Act,
1860
under
the
Indian
Laws.
This
publication
has
been
prepared
by
Confederation
of
Indian
Industry
as
a
guide
only
and
should
not
be
relied
upon
as
professional
advice
in
any
manner
as
the
report
contains
data/information
captured
through
the
secondary
sources.
No
responsibility
can
be
accepted
by
us
for
loss
if
occasioned
to
any
person
acting
or
refraining
from
acting
as
a
result
of
any
material
in
this
publication.
However,
in
the
event
of
any
discrepancy,
suggestions,
etc.,
the
same
may
be
forwarded
to
info@cii.in
which
would
be
appropriately
considered
and
followed
from
our
end.

3.
4
BUSINESS AND INVESTMENT CLIMATE IN THE UNITED STATES
FOREWORD
Chandrajit
Banerjee
Director
General
Confederation
of
Indian
Industry
The
world
economy
is
today
once
again
on
an
upward
trajectory.
Markets
are
buoyant
and
companies
are
looking
at
outward
expansion—for
new
markets
and
investment
destinations.
India
is
certainly
one
of
the
countries
where
one
can
expect
high
growth
rates
and
heightened
economic
activity.
The
Modi
government
that
came
into
power
in
2014
has
infused
new
enthusiasm
amongst
domestic
and
foreign
businesses.
For
the
members
of
the
Confederation
of
Indian
Industry
(CII),
while
the
domestic
Indian
economy
remains
undeniably
strong,
with
projected
growth
rates
of
8-­‐8.5%
over
the
coming
year,
our
companies
continue
to
also
expand
their
global
footprint.
The
United
States,
in
this
context,
remains
a
prime
investment
destination.
The
US-­‐India
trade
and
commercial
relationship
has
grown
by
leaps
and
bounds
with
bilateral
trade
touching
nearly
$100
billion.
At
the
same
time,
the
investment
story
too
remains
strong
with
the
US
ranked
as
the
sixth
largest
source
of
FDI
into
India,
while
India
has
also
emerged
as
one
of
the
fastest
growing
sources
of
FDI
into
the
United
States.
CII’s
own
studies
have
found
that
Indian
companies
have
invested
in
a
range
of
sectors
in
the
US
including
in
technology,
tele-­‐
communications,
pharmaceuticals
and
life
sciences,
iron
and
steel,
mining,
energy,
manufacturing,
financial
services
etc.
These
investments
are
spread
across
more
than
40
US
states.
Indian
companies
have
made
their
mark
through
greenfield
and
brownfield
investments,
mergers
and
acquisitions,
joint
ventures,
and
other
business
collaborations
with
US
companies.
CII
is
proud
of
its
relationship
with
Select
USA
which
has
been
vastly
helpful
in
facilitating
the
entry
of
Indian
companies
into
the
US
market.
We
first
released
the
report,
‘Business
Climate
in
the
United
States’
in
2011,
and
it
has
come
to
serve
as
a
critical
tool
kit,
for
not
just
Indian
companies,
but
indeed,
any
company
across
the
world
that
may
be
interested
to
enter
the
US
market.
In
this
updated
version
of
the
report,
we
once
again
look
at
the
‘Top
10
reasons’
why
a
company
should
invest
in
a
par-­‐
ticular
state,
the
core
and
upcoming
sectors
of
strength
and
growth,
as
well
as
the
various
tax
and
financial
incentives
on
offer.
Our
aim,
through
this
report
is
to
provide
a
‘first,
one-­‐stop
guide’
to
companies
as
they
evaluate
the
strengths
of
various
US
states
and
decide
where
to
put
their
investment
dollars
to
work.
Through
such
efforts,
CII
continues
to
fulfill
its
role
as
the
premiere
industry
association
in
India,
playing
a
pro-­‐active
role
in
advancing
the
US-­‐India
trade,
commercial
and
investment
relationship.

4.
5
BUSINESS AND INVESTMENT CLIMATE IN THE UNITED STATES
FOREWORD
Vinai
Thummalapally
Executive
Director,
SelectUSA
U.S.
Department
of
Commerce
The
year
2014
was
an
exciting
one
for
investment
in
the
United
States,
which
was
again
ranked
#1
by
A.T.
Kearney’s
Foreign
Direct
Investment
(FDI)
Confidence
Index.
According
to
A.T.
Kearney’s
survey
of
global
executives:
“The
mes-­‐
sage
here
is
crystal
clear:
the
United
States
is
back
in
the
minds
of
global
business
leaders
as
the
prime
destination
for
their
investment.
Never
in
the
16-­‐year
history
of
this
index
has
a
country
had
such
a
positive
net
position.”
It
has
also
been
an
exciting
time
for
India,
with
the
election
of
a
new
government
with
a
mandate
to
make
it
easier
than
ever
for
Indians
to
do
business.
In
July
2014,
I
had
the
pleasure
of
hearing
directly
from
Indian
investors
during
a
lunch-­‐
eon
hosted
by
the
Confederation
of
Indian
Industry
(CII)
welcoming
U.S.
Commerce
Secretary
Penny
Pritzker
to
Mumbai.
When
I
returned
to
India
in
September,
I
took
the
opportunity
to
meet
with
CII
leadership
in
New
Delhi
and
to
speak
to
CII’s
Young
Indians
group
in
my
hometown
of
Hyderabad.
In
my
travels
to
the
country,
including
joining
President
Obama
during
his
January
2015
visit,
I
felt
a
palpable
atmosphere
of
optimism.
Quite
simply,
there
has
never
been
a
bet-­‐
ter
time
for
Indians
to
expand
their
businesses
to
the
United
States
than
2015.
That
goes
for
the
rest
of
the
world
as
well.
As
I’ve
told
investors
in
Japan,
Korea,
China,
the
United
Kingdom,
France,
and
many
other
countries,
the
United
States
is
recovering
strongly
from
the
recession.
It
is
the
only
place
in
the
world
with
the
combination
of
a
top
consumer
market,
world-­‐class
university
system,
strong
intellectual
property
regime
and
pro-­‐
ductive
workforce.
However,
we
understand
that,
with
so
many
states
and
territories,
the
United
States
can
be
a
daunt-­‐
ing
market
to
navigate.
At
SelectUSA,
we
aim
to
make
your
entry
into
the
United
States
as
easy
as
possible.
When
we
work
with
Indian
businesses,
CII
is
a
trusted
partner
both
in
India
and
in
the
United
States.
We
are
excited
to
partner
with
CII
on
producing
the
second
edition
of
Business
and
Investment
Climate
in
the
United
States.
By
giving
a
state-­‐by-­‐state
view
of
the
United
States,
this
guide
serves
as
a
toolkit
to
help
bring
clarity
and
direction
to
individuals
and
companies
around
the
world
that
want
to
learn
more
about
how
business
is
done
in
the
United
States,
and
how
to
reach
the
right
contacts
in
each
state
to
quickly
get
more
information.
Housed
within
the
U.S.
Department
of
Commerce,
SelectUSA
coordinates
across
the
federal
government
to
serve
as
a
single
point
of
contact
for
investors.
We
assist
investors
to
find
information
and
contacts,
address
regulatory
questions,
and
access
the
resources
they
need
for
success.
To
learn
how
we
can
help
you,
please
visit
www.SelectUSA.gov.
Thank
you
to
CII
for
producing
such
an
informative
and
essential
guide.
Please
don’t
hesitate
to
reach
out
to
us
with
your
investment
questions
and
concerns.

5.
6
BUSINESS AND INVESTMENT CLIMATE IN THE UNITED STATES
ALABAMA
Top
10
Reasons
to
Do
Business
in
Alabama:
1. Tax
Climate:
The
tax
burden
in
Alabama
is
one
of
the
lowest
in
the
United
States.
In
addition,
Alabama
is
one
of
a
small
num-­‐
ber
of
states
that
allow
a
full
deduction
of
Federal
taxes
paid
from
state
income
tax
liability.
The
state
has
developed
aggres-­‐
sive
tax
incentive
programs
for
new
and
expanding
industry
in-­‐
cluding
sales
and
property
tax
abatements,
and
a
capital
in-­‐
come
tax
credit.
2. Location
and
Logistics:
Alabama
is
a
prime
location
in
the
heart
of
the
fast-­‐growing
U.S.
South.
The
State’s
interstate
system
al-­‐
lows
companies
to
access
over
160
metropolitan
areas
in
a
600
mile
radius.
Alabama’s
comprehensive
transportation
network
includes
six
interstate
highways,
seven
commercial
airports,
five
Class
I
railroads,
multi-­‐modal
services
and
facilities
and
one
of
the
nation’s
largest
inland
waterway
systems.
The
Port
of
Mobile,
Alabama’s
deep-­‐water
seaport
on
the
Gulf
of
Mexico,
is
an
integral
part
of
the
nation’s
intermodal
freight
infrastruc-­‐
ture.
3. Labor
Environment:
Hailed
as
one
of
the
nation’s
most
effective
state-­‐sponsored
workforce
training
programs,
AIDT
has
provid-­‐
ed
state-­‐of-­‐the-­‐art
industrial
training
to
thousands
of
workers
of
Alabama
industries.
AIDT’s
services
are
cost-­‐free
for
qualify-­‐
ing
new
and
expanding
industries
in
Alabama.
AIDT
was
award-­‐
ed
ISO
9001:2008
certification
by
the
International
Organiza-­‐
tion
for
Standardization.
4. Access
to
Talent:
Alabama
offers
a
labor
pool
of
more
than
two
million
dedicated,
reliable
and
skilled
workers.
Alabama’s
edu-­‐
cation
systems
and
workforce
development
agency
work
in
conjunction
with
Alabama
industry
to
meet
current
and
future
workforce
needs.
Alabama’s
institutions
of
higher
education
are
strategically
located
throughout
the
state
providing
Ala-­‐
bamians
with
educational
opportunities
to
meet
the
emerging
needs
of
citizens
and
industry.
5. Cost
of
Doing
Business:
Alabama
offers
an
overall
cost
structure
that
is
one
of
the
Country’s
most
competitive.
In
2014,
Site
se-­‐
lection
consultants
surveyed
by
national
economic
develop-­‐
ment
publication
Area
Development
ranked
Alabama
a
top
state
for
doing
business
and
gave
high
marks
to
the
state
for
its
labor
climate
and
business
environment.
Alabama
ranked
fourth
overall
and
first
for
competitive
labor
costs.
6. Leading
Exporter:
Located
on
the
Gulf
of
Mexico,
Alabama
is
a
gateway
to
growing
international
markets.
In
2014,
Alabama
exports
were
valued
at
$19.518
billion
with
shipments
to
194
countries.
7. International
Appeal:
Companies
all
over
the
globe
have
made
their
way
to
Alabama.
Alabama
is
an
ideal
hub
for
foreign-­‐
based
businesses.
Currently,
more
than
425
foreign-­‐based
companies
from
more
than
30
nations
enjoy
success
in
Ala-­‐
bama.
8. Quality
of
Life:
Alabama
offers
an
abundance
of
natural
and
scenic
diversity
-­‐
mountains
to
the
north,
beaches
to
the
south,
expansive
rivers
and
lakes,
forests
and
plains.
Alabama
has
an
overall
cost
of
living
that
is
ranked
below
the
national
index
and
housing
costs
that
are
well
below
the
national
average.
Ala-­‐
bama
has
nationally-­‐acclaimed
medical,
award-­‐winning
schools,
and
universities
including
those
with
highly-­‐respected
schools
of
Engineering,
Medicine,
and
Agriculture.
9. Custom
Solutions:
The
Alabama
Department
of
Commerce
and
its
five
divisions
(Business
Development,
International
Trade,
Small
Business
Advocacy,
AIDT,
and
Film
Production)
are
led
and
staffed
by
professionals
ready
to
assist
businesses.
10. Leadership
with
a
forward-­‐looking
approach:
Alabama’s
$73
million
Robotics
Technology
Park
was
the
first
of
its
kind
in
North
America.
Accelerate
Alabama,
the
State’s
comprehensive

6.
7
BUSINESS AND INVESTMENT CLIMATE IN THE UNITED STATES
action
plan
for
economic
development
growth,
includes
strate-­‐
gic
market
targets,
timelines,
and
measureable
objectives.
The
plan
is
now
entering
its
second
phase.
Governor
Robert
Bentley
ran
his
campaign
based
on
a
promise
that
he
would
not
accept
a
salary
until
Alabama
reaches
full
employment
level.
Core
Industry
Sectors
of
Strength:
• Aerospace
• Food
Production
• Automotive
• Chemical
• Forestry
products
• Primary
Metals
Upcoming
Sectors
of
Growth:
• Aerospace
• Automotive
• Bioscience
• Distribution
• Information
Technology
Select
Tax
Incentives:1
The
corporate
income
tax
rate
in
Alabama
is
6.5
percent.
Because
Alabama
allows
for
the
deduction
of
federal
income
tax
(one
of
the
only
states
in
the
United
States
to
do
so),
the
net
effective
rate
is
4.52
percent.
1. The
Income
Tax
Capital
Credit:
Designed
to
create
jobs
and
to
stimulate
business
and
economic
growth.
It
is
an
annual
credit
of
five
percent
of
the
capital
costs
of
a
qualifying
project
each
year
for
20
years,
to
be
applied
to
the
Alabama
income
tax
lia-­‐
bility
or
financial
institution
excise
tax
generated
by
the
project
income.
1
For
complete
information
on
the
various
tax
incentives
being
offered
by
the
state
of
Alabama,
please
visit
http://revenue.alabama.gov/taxincentives/
Photo
Credits:
Alabama
Department
of
Commerce
2. Abatements
are
also
available
and
may
include:
(a)
non-­‐
educational
state,
county,
and
city
property
taxes
for
a
period
of
up
to
10
years,
(b)
state
sales
and
use
taxes
on
construction
materials
and
equipment
used
in
manufacturing,
and
(c)
non-­‐
educational
county
and
city
sales
and
use
taxes
on
construction
materials
and
equipment
used
in
manufacturing.
3. No
Inventory
Tax:
Alabama
does
not
levy
property
tax
on
in-­‐
ventory.
Raw
materials
and
goods-­‐in
process
are
also
exempt-­‐
ed.
4. Business
Privilege
Tax
Cap:
The
maximum
business
privilege
tax
for
most
business
entities
is
$15,000.
The
exceptions
are
for
fi-­‐
nancial
institutions,
financial
institution
groups,
and
insurance
companies
that
have
a
maximum
business
privilege
tax
of
$3
million.

7.
8
BUSINESS AND INVESTMENT CLIMATE IN THE UNITED STATES
Other
Incentives:
1. Alabama
Industrial
Development
Training
(AIDT)
2
:
Ranked
first
among
workforce
training
programs,
AIDT
services
are
usually
provided
at
no
cost
to
employers,
and
is
the
first
organization
of
its
kind
in
the
United
States
to
earn
international
certifica-­‐
tion
(ISO:
9001:2008)
for
its
quality
management
system.
AIDT
total
workforce
delivery
system
includes:
recruiting
potential
employees
through
advertisements
and
announcements,
col-­‐
lecting
and
screening
applications,
assisting
with
interviews,
pre-­‐employment
training,
on-­‐the-­‐job
training,
leadership
de-­‐
velopment,
safety
training,
and
maintenance
technical
assess-­‐
ments.
2. Alabama’s
Robotics
Technology
Park
(RTP)
3
:
The
Alabama
Ro-­‐
botics
Technology
Park
consists
of
three
individual
training
fa-­‐
cilities,
each
targeted
to
a
specific
industry
need.
The
Robotic
Maintenance
Training
center,
The
Advanced
Technology
Re-­‐
search
and
Development
Center,
and
The
Integration,
Entre-­‐
preneurial
and
Paint/Dispense
Training
Center
(to
be
complet-­‐
ed
in
2015),
represent
an
investment
of
approximately
$73
mil-­‐
lion,
including
robotics
equipment.
3. Grants
and
Bonds
for
Infrastructure:
Grants
may
be
available
for
site
preparation,
water
and
sewer
improvements,
and
in-­‐
dustrial
roads
and
bridge
access
for
qualifying
projects.
Indus-­‐
trial
Revenue
Bonds
financing
can
be
available
for
part
or
all
of
the
cost
of
land
acquisition,
site
preparation,
construction,
equipment,
and
other
basic
costs
for
qualifying
new
or
expand-­‐
ing
projects.
2
For
more
information
on
AIDT,
please
visit
www.aidt.edu
3
For
more
information
on
Alabama’s
Robotics
Technology
Park,
please
visit
www.alabamartp.org
4. Income
Tax
Education
Credit:
Employers
who
provide
or
spon-­‐
sor
a
program
which
enhances
basic
educational
skills
of
em-­‐
ployees,
up
to
and
including
the
12
th
grade
level,
could
qualify
for
an
income
tax
credit
of
20
percent
of
the
actual
costs
of
an
approved
program,
limited
to
the
employer’s
income
tax
liabil-­‐
ity.
5. One-­‐Stop
Environmental
Permitting:
The
Alabama
Department
of
Environmental
Management
(ADEM)
has
authority
to
issue
the
permits
required
by
all
the
major
federal
environmental
laws.
Therefore,
Alabama
can
offer
“one-­‐stop”
permitting.
4
6. Property
is
available
statewide:
Businesses
of
all
sizes
will
find
plenty
of
available
building
and
sites
options
to
suit
their
needs.
Over
500
industrial
and
commercial
buildings
are
available
for
sale
or
lease.
Business
and
technology
incubators
throughout
the
state
provide
support
for
budding
businesses.
Almost
500
prepared
industrial
parks,
greenfield
sites
and
reusable
proper-­‐
ties
are
available
in
Alabama,
with
acreage
ranging
from
five
to
5,000
acres.
For
more
information,
please
contact:
Agency:
Alabama
Department
of
Commerce
Address:
401
Adams
Avenue,
Montgomery,
Alabama
36130
USA
Email:
angela.till@commerce.alabama.gov
Phone:
334.353.0221
Website:
www.madeinalabama.com
4
For
more
information,
please
visit
www.adem.state.al.us

8.
9
BUSINESS AND INVESTMENT CLIMATE IN THE UNITED STATES
ALASKA
Top
10
Reasons
to
Do
Business
in
Alaska:
1. Tax
Climate:
Alaska
levies
a
corporate
income
tax
on
Alaska
taxable
income
which
is
based
on
federal
taxable
income
with
certain
state
adjustments.
Multistate
corporations
apportion
income
on
water’s
edge
basis
using
the
standard
apportion-­‐
ment
formula
of
property,
payroll
and
sales.
Oil
and
gas
corpo-­‐
rations
use
a
modified
apportionment
formula
applied
to
worldwide
income.
Tax
rates
are
graduated
from
1
percent
to
9.4
percent
in
increments
of
$10,000
of
taxable
income.
The
9.4
percent
maximum
rate
applies
to
taxable
income
of
$90,000
and
over.
There
is
no
State
personal
income
tax
and
no
statewide
sales
tax,
although
some
communities
do
have
local
sales
taxes.
2. Location
and
Logistics:
Over
90
percent
of
the
freighter
aircraft
operating
Asia/North
America
Routes
stop
in
Anchorage,
mak-­‐
ing
it
an
important
transit
hub.
Alaska
is
centrally
located
to
serve
the
entire
Pacific
Rim
and
is
well
positioned
to
serve
the
Canadian
and
U.S.
west
coasts.
3. Labor
Environment:
Workers’
Compensation
-­‐
Alaska’s
mini-­‐
mum
wage
as
of
January
1,
2015
is
$8.75.
The
minimum
wage
will
increase
January
1,
2016
to
$9.75
4. Access
to
Talent:
Alaska
boasts
several
world
class
institutions
of
higher
learning
including
multiple
campuses
for
the
Universi-­‐
ty
of
Alaska
Anchorage,
University
of
Alaska
Fairbanks,
and
the
University
of
Alaska
Southeast.
The
next
largest
post
secondary
institution
in
Alaska
is
Alaska
Pacific
University.
Alaska
is
also
home
to
other
colleges
like
Alaska
Bible
College,
Charter
College,
Saint
Herman's
Orthodox
Theological
Seminary,
and
Wayland
Baptist
University.
The
colleges
and
universities
provide
an
excellent
source
of
work-­‐ready
talent
to
businesses
in
the
state.
5. Cost
of
Doing
Business:
The
Anchorage
Consumer
Price
Index
(CPI)
is
probably
the
most
important
cost-­‐of-­‐living
index
in
Alaska,
and
it
is
often
treated
as
the
de
facto
statewide
inflation
measure.
In
2014,
prices
in
Anchorage
increased
by
1.6
percent.
See
http://laborstats.alaska.gov/cpi/cpi.htm
6. Alaska’s
unemployment
rate
was
below
the
national
average
from
mid
2008
through
2013.
7. Alaska’s
State
Energy
Policy
target
is
to
generate
50
percent
of
electricity
from
renewable
energy
by
2025,
and
improve
energy
efficiency
by
15
percent.
The
Alaska
Department
of
Labor
received
a
$3.6
million
grant
from
the
U.S.
Department
of
Labor,
Employment
and
Training
Administration
to
focus
training
for
careers
in
emerging
energy-­‐efficient
and
renewable
energy
industries
including
geothermal,
hydroelectric,
wind
turbine,
and
biomass.
Thus,
there
is
a
renewed
focus
on
green
jobs
in
the
state.
8. Alaska
avoided
the
worst
effects
of
the
economic
recession
thanks
to
the
structure
of
its
economy,
with
its
dominance
of
natural
resource
development
and
government,
and
the
relative
lack
of
speculative
real
estate
investment.
Alaska’s
economy
was
simply
different
enough
to
avoid
being
pulled
down
in
the
nationwide
furor.
9. Finding
a
job
in
Alaska
has
been
easier
than
in
most
other
places
in
the
U.S
for
the
last
three
years.
The
July
2011
issue
of
Forbes
magazine
deemed
Anchorage
the
third
best
mid-­‐sized
city
for
jobs
in
the
United
States.
10. Permit
Assistance
and
Development
Bank:
The
state
of
Alaska
assists
natural
resource
development
companies
in
permitting
a
major
facility
through
the
Department
of
Natural
Resources
Office
of
Project
Permitting.
The
state
can
also
participate
in
major
infrastructure
developments
through
the
Alaska
Indus-­‐
trial
Development
and
Export
Authority
(AIDEA).

9.
10
BUSINESS AND INVESTMENT CLIMATE IN THE UNITED STATES
Core
Industry
Sectors
of
Strength:
• Energy
• Fisheries
• Mining
• Tourism
• International
Air
Cargo
Transportation
• Forest
Products
• Healthcare
• Retail
Trade
Upcoming
Sectors
of
Growth:
Same
as
above
Select
Tax
Incentives:
Alaska
has
adopted
several
exploration
and
development
incentive
programs
to
encourage
active
exploration
and
the
timely
develop-­‐
ment
of
the
state's
oil
and
gas
resources
5
.
A
few
are
listed
below:
1. Production
Tax
Credits
2. Exploration
Tax
Credits
Under
AS
43.55.025
3. Exploration
Incentives
Under
AS
38.05.180(i)
4. Cook
Inlet
Jack-­‐Up
Tax
Credit
5. Tax
Credits
Under
AS
43.20.043
6. Production
Tax
Ceiling
for
“New
Production”
7. Production
Tax
“Forgiveness”
for
Small
Producers
8. Nonconventional
Natural
Gas
Rent
and
Royalty
Incentive
9. Royalty
Modification
5
For
more
information
on
incentives,
please
see:
http://dog.dnr.alaska.gov/Programs/ExplorationIncentives.htm
Photo
Credits:
ABB/
Matthew
F.
Smith,
KNOM
–
Nome
For
detailed
information
about
the
Production
Tax
Credits
and
Ex-­‐
ploration
Tax
Credits
listed,
please
see:
http://dog.dnr.alaska.gov/Programs/ExplorationIncentives.htm
For
more
information,
please
contact:
Agency:
Office
of
International
Trade,
Office
of
the
Governor
Address:
550
West
7th
Avenue,
Suite
1700,
Anchorage,
AK
99501
Email:
patricia.eckert@alaska.gov
Phone:
(907)
269-­‐8118
Website:
www.Trade.Alaska.Gov

10.
11
BUSINESS AND INVESTMENT CLIMATE IN THE UNITED STATES
ARIZONA
Top
10
Reasons
to
Do
Business
in
Arizona:
1. Tax
Climate:
Arizona
levies
no
corporate
franchise
or
business
inventory
tax,
no
income
tax
on
dividends
from
out-­‐of-­‐state
subsidiaries,
and
no
worldwide
unitary
tax.
In
addition,
virtually
all
services
are
exempt
from
Sales
Tax.
The
Arizona
Competi-­‐
tiveness
Package,
passed
in
2011,
called
for
a
four-­‐year,
phased-­‐in
reduction
of
the
state’s
corporate
income
tax
to
4.9
percent,
which
began
in
January
2014.
The
package
also
man-­‐
dates
an
increase
in
the
electable
state
corporate
income-­‐tax
sales
factor
to
100
percent,
up
from
the
current
80
percent,
as
well
as
a
5
percent
acceleration
of
the
depreciation
schedule
for
business
personal
property.
2. Location
and
Logistics:
Arizona
is
strategically
located
to
serve
a
company’s
western
US
customers
efficiently
and
cost
effective-­‐
ly.
Companies
can
sell
and
ship
to
customers
in
California
from
Arizona
where
operational
costs
are
less
and
transportation
routes
are
often
faster
to
reach
major
California
markets.
3. Labor
Environment:
Arizona
is
one
of
the
few
Right
to
Work
states
by
virtue
of
the
State
Constitution,
providing
more
stabil-­‐
ity
to
the
environment
than
is
the
case
in
states
that
can
make
the
change
legislatively.
According
to
data
from
the
National
Academy
of
Social
Insurance,
Arizona’s
workers’
compensation
employer
costs
are
among
the
nation’s
lowest,
at
$0.89
per
$100
of
covered
wages.
4. Access
to
Talent:
Arizona
employers
benefit
from
a
high
per-­‐
formance,
educated,
diverse
and
fast
growing
workforce
that
is
backed
by
a
strong
university
system
that
includes
Arizona
State
University,
University
of
Arizona,
and
Northern
Arizona
University.
In
addition,
Arizona
is
home
to
the
Maricopa
Com-­‐
munity
College
District
(MCCD),
the
nation’s
largest
community
college
system.
MCC
has
a
well
deserved
and
envied
track
rec-­‐
ord
for
working
closely
with
employers
to
design
programs
to
meet
specific
industry
requirements.
5. Cost
of
Doing
Business:
Arizona
offers
one
of
the
nation's
low-­‐
est
costs
of
doing
business,
thanks
to
its
low
taxes
and
small
state
government.
6.
Arizona
has
demonstrated
an
enduring
pro-­‐business
mentali-­‐
ty–
a
long
tradition
that
transcends
politics
and
trends.
The
state
combines
a
minimalist
regulatory
approach
with
legisla-­‐
tive
consistency
and
predictability
with
respect
to
business.
In
fact,
for
12
consecutive
years,
Arizona
has
reduced
taxes
or
passed
legislation
favorable
to
business.
7. According
to
the
U.S.
Department
of
Labor,
Employment
and
Training
Administration,
UI
Data
Summary
for
the
third
quarter,
2014,
Arizona’s
average
unemployment
insurance
tax
rate
is
just
$0.46
on
total
wages,
among
the
lowest
in
the
country.
8. The
state's
universities
and
its
research-­‐intensive
companies
drive
Arizona's
research
and
development
activities,
and
make
it
one
of
the
nation's
top
patenting
states.
Intel,
IBM,
Honey-­‐
well
International,
Raytheon
and
Freescale
Semiconductors
lead
the
state's
patenting
activity.
Arizona
is
a
leader
in
semi-­‐
conductor
device
manufacturing,
solid-­‐state
devices,
computer
memory,
electrical
systems
and
optics.
Arizona
excels
in
the
ability
of
its
small
firms
to
attract
federal
funding
for
commer-­‐
cialization,
and
the
state's
universities'
ability
to
attract
federal
R&D
funding.
9. Many
recent
studies
have
hailed
Arizona's
potential
for
growth
over
the
next
few
years
due
to
the
state's
continued
strong
economic
performance
and
its
vibrant
technology
community.
Arizona
is
expected
to
increase
its
venture
capital
investments,
business
openings,
and
jobs
over
the
next
few
years.
10. Arizona
is
a
safe
operating
environment
with
little
risk
of
natu-­‐
ral
disasters,
such
as
earthquakes,
hurricanes,
floods,
etc.

11.
12
BUSINESS AND INVESTMENT CLIMATE IN THE UNITED STATES
Core
Industry
Sectors
of
Strength:
• Aerospace
and
Defense
• Science
and
Technology
• Biosciences
• Nanotechnology
• Environment
• Renewable
Energy
• Optics
• Advanced
Business
Services
Upcoming
Sectors
of
Growth:
Same
as
above
Select
Tax
Incentives:6
1. Qualified
Facility
Tax
Credits:
Refundable
income
tax
credit
for
a
manufacturing
facility
or
a
manufacturing-­‐related
research
or
headquarter
facility.
Credit
is
equal
to
10%
of
the
qualifying
capital
investment
in
a
new
facility
or
$20,000
per
qualified
new
job
created,
whichever
is
less.
51%
of
new
jobs
must
pay
wages
of
at
least
125%
of
the
state
median
and
the
company
must
offer
to
pay
at
least
80%
of
health
insurance
premium
costs
for
the
employee.
2. Arizona’s
Renewable
Energy
Tax
Incentive
Program
(RETIP):
Administered
by
the
Commerce
Authority,
the
Program
offers
a
refundable
tax
credit
of
up
to
10
percent
of
the
qualified
in-­‐
vestment
made
in
real
and
personal
business
property
for
use
in
eligible
renewable
energy
manufacturing
operations.
The
credit
is
taken
over
a
five
year
period
and
may
be
submitted
for
cash
refund
if
there
are
no
state
income
taxes
due,
or
tax
credit
value
exceeds
the
amount
of
tax
liability.
3. Arizona’s
Quality
Jobs
Tax
Credit:
Provides
corporate
tax
credits
of
up
to
$9,000
for
each
qualifying
new
job.
(Paid
out
at
$3,000
per
job,
per
year
over
a
3-­‐year
period).
The
program
is
capped
at
10,000
jobs-­‐per-­‐year.
Credits
can
be
carried
forward
for
five
years.
To
qualify
for
the
$9,000
tax
credit
for
net-­‐new
hires,
a
firm’s
capital
investment
in
metro
communities
must
be
at
least
$5,000,000
and
create
at
least
25
new
qualified
employ-­‐
ment
positions
within
a
12-­‐month
period.
The
wage
must
equal
or
exceed
the
county
median
wage
and
the
employee
must
offer
to
pay
65
percent
of
the
employee’s
health
insur-­‐
ance
premium.
4. Research
&
Development
Income
Tax
Credit:
Arizona
provides
a
tax
credit
for
investments
in
research
and
development
in
ex-­‐
cess
of
expenditures
from
the
previous
year.
The
amount
of
the
credit
is
based
on
the
federal
regular
credit
computation
meth-­‐
od
for
Arizona
qualified
research
expenses
and
Arizona
basic
research
payments.
The
current
formula
calculates
the
income
tax
credit
equal
to
24
percent
of
the
first
$2,500,000
in
qualify-­‐
ing
expenses.
When
qualifying
costs
exceed
$2,500,000,
the
6
For
complete
information
on
the
various
tax
incentives
being
offered
by
the
state
of
Arizona,
please
visit
http://www.azcommerce.com/incentives.aspx
Photo
Credits:
Arizona
Commerce
Authority
credit
is
$600,000
plus
15
percent
of
the
amount
exceeding
$2,500,000.
5. Arizona
Additional
Depreciation
Program
(AADP):
The
AADP
provides
a
unique
and
aggressive
depreciation
schedule
to
en-­‐
courage
new
capital
investment
and
reduce
a
company’s
per-­‐
sonal
property
tax
liability.
It
is
worth
pointing
out
that
sched-­‐
ules
for
most
equipment
classes
provide
for
depreciation
down
to
2.5
percent
of
original
value,
thus
virtually
eliminating
the
tax
liability.
6. Sales
and
Use
Tax
Exemptions:
Exemptions
are
available
for
equipment
and
machinery
used
in
R
&
D
and
directly
in
manu-­‐
facturing,
as
well
as
for
electricity
used
in
manufacturing.
Other
Incentives:
1. Arizona’s
Job
Training
Program:
Administered
by
the
Arizona
Commerce
Authority,
this
program
has
been
ranked
among
the
best
in
the
nation
in
terms
of
training
flexibility
and
ease
of
ac-­‐
cess
to
the
funds.
Depending
on
location
and
wage
structure,

12.
13
BUSINESS AND INVESTMENT CLIMATE IN THE UNITED STATES
the
reimbursable
grant
program
provides
up
to
$8,000
of
eligi-­‐
ble
training
costs
per
employee
to
companies
creating
perma-­‐
nent,
full-­‐time
new
jobs
or
up
to
$4,000
of
eligible
training
ex-­‐
penses
for
existing
workers
within
the
state.
The
program
is
streamlined,
extremely
flexible
and
is
tailored
to
meet
the
spe-­‐
cific
needs
of
the
company.
The
grant
can
be
used
to
cover
up
to
75
percent
of
training
costs
for
net
new
employees,
and
up
to
50
percent
of
the
training
costs
for
incumbents.
2. Foreign
Trade
Zone
Program:
Arizona
has
enacted
special
legis-­‐
lation
that
makes
businesses
located
in
a
zone
or
sub-­‐zone
eli-­‐
gible
for
up
to
an
80
percent
reduction
in
state
real
and
per-­‐
sonal
property
taxes.
The
reduction
lasts
for
the
entire
time
the
company
operates
in
the
zone
or
sub-­‐zone.
The
company
must
meet
the
Foreign
Trade
Zone
federal
eligibility
guidelines.
For
more
information,
please
contact:
Agency:
Arizona
Commerce
Authority
Address:
333
North
Central
Avenue,
Suite
1900,
Phoenix,
AZ
85004
Email:
kevins@azcommerce.com
Phone:
602-­‐845-­‐1200
Website:
http://www.azcommerce.com/

13.
14
BUSINESS AND INVESTMENT CLIMATE IN THE UNITED STATES
ARKANSAS
Top
10
Reasons
to
Do
Business
in
Arkansas:
1. Tax
Climate:
When
it
comes
to
incentives
in
Arkansas,
the
numbers
speak
for
themselves.
There
is
a
strong
variety,
com-­‐
petitiveness
and
customization
of
incentives.
Create
Rebate
can
provide
up
to
5%
payroll
rebate;
Targeted
ArkPlus
credits
2%
on
investments
from
$250,000
up
to
$500,000
and
researchers
that
partner
with
an
Arkansas
university
receives
a
33%
income
tax
credit.
2. Location
and
Logistics:
Arkansas’s
transportation
network
and
central
U.S.
location
define
the
state
as
a
strategic
distribution
center.
Midway
between
Mexico
City
and
Montreal,
Arkansas
offers
a
valuable
distribution
advantage.
3. Labor
Environment:
Arkansas
boasts
a
skilled,
and
well-­‐trained
manufacturing
workforce,
as
well
as
low
turnover
rates.
Arkansas
is
a
right-­‐to-­‐work
state,
as
well
as
a
non-­‐union
state.
In
addition,
state-­‐sponsored,
custom-­‐built,
training
assistance
programs
can
help
businesses
hire
the
right
kind
of
talent.
The
state
also
offers
easy
access
to
universities
and
community
colleges,
which
work
with
local
businesses
to
create
courses
to
produce
a
better
trained
workforce.
4. Access
to
Talent:
More
than
60,000
Arkansans
are
now
certified
through
the
Arkansas
Career
Readiness
Certificate
Program,
which
confirms
to
employers
that
individuals
possess
basic
workplace
skills
in
reading
for
information,
applied
mathemat-­‐
ics,
and
locating
information.
5. Cost
of
Doing
Business:
Market
entry
costs
into
Arkansas
are
lower
than
a
lot
of
other
states
in
the
United
States.
Arkansas
has
the
second-­‐lowest
cost
of
doing
business
in
the
U.S
and
the
second-­‐lowest
cost
of
living
among
U.S.
metropolitan
areas.
6. Amendment
82
–
Customer
friendly
approach:
Amendment
82
was
approved
by
Arkansas
voters
in
2004
and
amended
in
2010.
It
allows
the
State
of
Arkansas
to
issue
General
Obligation
Bonds
to
finance
infrastructure
costs
associated
with
eligible
companies
locating
or
expanding
operations
in
Arkansas.
The
state
can
issue
bonds
to
fund
a
prospect’s
infrastructure
needs
through
the
Arkansas
Development
Finance
Authority,
limited
to
5%
of
net
general
revenues
during
the
most
recent
fiscal
year.
7.
Infrastructure:
We
have
all
of
the
4
Rs
–
rail,
roads,
runways,
and
rivers.
Arkansas’s
intermodal
transportation
network
of
highways,
railways,
air
routes,
waterways,
and
pipelines
is
ide-­‐
ally
suited
to
meet
the
needs
of
business.
These
facilities
pro-­‐
vide
easy
access
to
U.S.
markets
and
the
world.
8. Amazing
quality
of
life:
Arkansas
is
an
outdoor
paradise
with
plenty
of
opportunities
for
hunting,
hiking,
cycling,
fishing,
and
running.
Cultural
offerings
include
world-­‐renowned
museums
and
fine
art
galleries,
theaters,
symphonies
and
performing
arts
centers.
The
state’s
capital
city,
Little
Rock,
has
received
top
honors
for
places
to
live
and
travel.
9. Pro-­‐business
leadership:
Newly
elected
Arkansas
Governor
Asa
Hutchinson
has
stated
that
economic
growth
and
job
creation
is
his
number
one
priority
through
his
PREPARE
workforce
train-­‐
ing
and
education
plan.
10. Entrepreneurial
Spirit:
The
state’s
seven
homegrown
Fortune
500
companies
are
proof
that
Arkansas
has
what
you
need
to
grow
your
business
in
the
21
st
century
global
marketplace.
The
seven
companies
–
Dillard’s,
JB
Hunt,
Murphy
Oil,
Murphy
USA,
Tyson
Foods,
Walmart,
and
Windstream
–
represent
five
differ-­‐
ent
industry
sectors,
demonstrating
Arkansas’s
diverse
econo-­‐
my.

14.
15
BUSINESS AND INVESTMENT CLIMATE IN THE UNITED STATES
Core
Industry
Sectors
of
Strength:
• Aerospace/Aviation
• Automotive
• Paper
&
Timber
Products
• Rubber
&
Plastics
• Software
Development
• Agriculture/Food
Processing
• Steel
• Information
Technology
Upcoming
Sectors
of
Growth:
• Advanced
materials
and
manufacturing
systems
• Firearms
&
Ammunition
• Agriculture,
food
and
environmental
sciences
• Transportation
logistics
• Biotechnology,
bioengineering
and
life
sciences
• Bio-­‐based
products
Select
Tax
Incentives:
1. Advantage
Arkansas
Income
Tax
Credit:
Advantage
Arkansas
of-­‐
fers
a
state
income
tax
credit
for
job
creation
based
on
the
pay-­‐
roll
of
new,
full-­‐time,
permanent
employees
hired
as
a
result
of
the
project.
The
payroll
threshold
for
qualifying
for
Advantage
Arkansas,
and
the
benefit
received,
depends
on
the
tier
as-­‐
signed
to
the
county
in
which
the
business
locates
or
expands.
2. Sales
and
Use
Tax
Refund:
Advantage
Arkansas
participants
in-­‐
vesting
at
least
$100,000
are
eligible
for
the
Tax
Back
program.
This
program
provides
a
refund
of
sales
and
use
taxes
for
build-­‐
ing
materials,
taxable
machinery,
and
equipment
associated
with
the
approved
project.
The
business
must
sign
a
job-­‐
creation
agreement
under
the
Advantage
Arkansas
program
within
24
months
of
signing
the
Tax
Back
agreement
or
have
an
existing
Advantage
Arkansas
agreement
within
the
previous
48
months.
3. InvestArk
Sales
and
Use
Tax
Credit:
This
program
is
available
to
businesses
established
in
Arkansas
for
two
years
or
longer,
that
invest
$5
million
or
more
in
plant
or
equipment
for
new
con-­‐
struction,
expansion
or
modernization.
The
business
must
be
approved
for
the
program
prior
to
beginning
construction.
The
business
must
obtain
a
direct-­‐pay
sales
and
use
tax
permit
from
the
State
of
Arkansas.
Total
project
expenditures
must
be
in-­‐
curred
within
four
years
of
the
project
plan
approval.
All
pro-­‐
jects
will
be
audited
upon
completion
to
confirm
the
tax
cred-­‐
its.
4. Tuition
Reimbursement
Tax
Credit:
Arkansas
provides
a
30
per-­‐
cent
state
income
tax
credit
to
eligible
companies
for
reim-­‐
bursements
they
make
on
behalf
of
employees
for
approved
educational
expenses.
The
employees
must
successfully
com-­‐
plete
the
course
at
an
accredited
Arkansas
post-­‐secondary
edu-­‐
cational
institution.
The
credit
authorized
by
this
program
cannot
offset
more
than
25
percent
of
the
company’s
state
income
tax
liability
in
any
tax
year.
5. Research
and
Development
Tax
Credit:
Eligible
businesses
that
contract
with
one
or
more
Arkansas
colleges
or
universities
in
performing
research
may
receive
an
income
tax
credit
of
33
percent
of
the
amount
spent
on
qualified
research
expendi-­‐
tures.
The
income
tax
credit
may
be
carried
forward
for
nine
years
beyond
the
year
in
which
it
was
earned.
6. Recycling
Equipment
Tax
Credit:
Arkansas
allows
taxpayers
to
receive
an
income
tax
credit
for
the
purchase
of
equipment
used
exclusively
for
reduction,
reuse
or
recycling
of
solid
waste
material
for
commercial
purposes,
whether
or
not
for
profit,

15.
16
BUSINESS AND INVESTMENT CLIMATE IN THE UNITED STATES
and
the
cost
of
installation
of
such
equipment
by
outside
contractors.
The
amount
of
the
tax
credit
shall
equal
30
percent
of
the
cost
of
equipment
and
installation
costs
deemed
eligible
by
the
Arkansas
Department
of
Environmental
Quality.
Credits
may
be
carried
forward
for
three
consecutive
years
following
the
taxable
year
in
which
the
credits
accrued.
Other
Incentives:
1. The
Business
and
Industry
Training
Program
of
the
Arkansas
Economic
Development
Commission
(AEDC)
provides
pre-­‐
employment
training
for
workers
to
meet
the
skills
needed
in
the
state’s
new
and
expanding
businesses.
AEDC’s
Existing
Business
Resource
Division
works
with
AEDC’s
Business
Devel-­‐
opment
Division
during
the
negotiation
process.
2. The
Existing
Workforce
Training
Program
(EWTP)
provides
fi-­‐
nancial
assistance
to
Arkansas’
businesses,
and
eligible
consor-­‐
tia
of
businesses,
for
upgrading
the
skills
of
the
existing
work-­‐
force.
Skills
upgrade
training
is
instruction
conducted
in
a
class-­‐
room
environment
at
a
work
site,
an
educational
institution,
or
a
neutral
location
that
provides
an
existing,
full-­‐time
employee
with
the
new
skills
necessary
to
enhance
productivity,
improve
performance,
and/or
retain
employment.
For
more
information,
please
contact:
Agency:
Arkansas
Economic
Development
Commission
Address:
900
West
Capitol
Avenue,
Suite
400,
Little
Rock,
Arkansas
72201
Email:
hhauk@arkansasedc.com
Phone:
(501)
682-­‐1682
Website:
www.ArkansasEDC.com
Photo
Credits:
Welspun
Tubular/
Lockheed
Martin/
Walmart
/APEI

16.
17
BUSINESS AND INVESTMENT CLIMATE IN THE UNITED STATES
CALIFORNIA
Top
10
Reasons
to
Do
Business
in
California:
1. Tax
climate:
California
is
continuously
working
to
improve
the
tax
climate
in
the
state.
California
does
not
levy
a
tax
on
inven-­‐
tory.
Furthermore,
the
State
has
instituted
tax
incentives
to
off-­‐
set
a
company’s
investment.
These
incentives
consist
of
a
Re-­‐
search
Tax
Credit,
Cal
Competes
Tax
Credit,
Partial
Sales
and
Use
Tax
Exemption
on
Manufacturing
equipment,
Full
Sales
and
Use
Tax
Exclusion
for
Advanced
Manufacturing,
and
a
New
Em-­‐
ployee
Credit
for
firms
that
are
located
in
a
Designated
Geo-­‐
graphic
Area
who
hire
employees
who
meet
certain
criteria.
California
does
not
levy
additional
taxes
on
foreign
firms.
2. Location
and
Logistics:
California’s
location
on
the
Pacific
Rim
gives
businesses
access
to
the
global
economy
and
one
of
the
largest
trade
networks
of
any
state.
California
is
connected
by
more
than
15,000
miles
of
highways
and
freeways,
and
the
state
is
home
to
12
cargo
airports,
and
11
cargo
seaports.
The
state
also
boasts
18
foreign
trade
zones.
3. Labor
Environment:
One
of
Governor
Brown’s
landmark
re-­‐
forms,
Senate
Bill
863
passed
on
August
1,
2012,
and
was
signed
into
law
on
Sept.
18,
2012.
The
bill
makes
wide-­‐ranging
changes
to
California’s
workers’
compensation
system,
includ-­‐
ing
increased
benefits
to
injured
workers
and
cost-­‐saving
effi-­‐
ciencies.
The
bill
took
effect
on
Jan.
1,
2013,
although
some
of
its
provisions
take
effect
at
a
later
date.
4. Access
to
Talent:
California’s
culture
embraced
technology
as
part
of
its
founding
DNA.
Technological
innovation
powers
the
California
economy.
The
state
is
home
to
nearly
1
million
high-­‐
tech
workers,
twice
the
number
of
the
next-­‐closest
state,
and
one-­‐sixth
of
all
U.S.
high-­‐tech
workers.
California
possesses
the
nation’s
highest
concentration
of
engineers,
scientists,
mathe-­‐
maticians
and
skilled
technicians.
California
leads
the
nation
in
several
strategic
high-­‐tech
industry
segments,
comprising
be-­‐
tween
20-­‐60
percent
of
U.S.
market
share
in
electronic
compo-­‐
nents,
commercial
aerospace,
medical
instruments,
biotech-­‐
nology,
and
transportation.
11
of
the
top
50
engineering
schools
are
located
in
California.
The
state
is
a
major
center
for
design
of
automobiles,
furniture,
apparel,
software,
electronics,
telecommunications
services,
computers,
and
semiconductors.
Over
2.3
million
students
are
enrolled
in
330
colleges
and
uni-­‐
versities.
On
average,
California
universities
graduate
over
266,000
college
graduates
every
year.
The
California
Communi-­‐
ty
College
system
is
without
rival
in
the
nation.
It
is
comprised
of
72
districts,
112
colleges,
and
enrolls
more
than
2.9
million
students.
5. Cost
of
Doing
Business:
California
offers
a
variety
of
incentives
that
assist
in
reducing
a
company’s
cost
of
doing
business.
The-­‐
se
incentives
consist
of
tax
credit,
sales
and
use
tax
exemptions
for
manufacturing
and
agriculture
equipment,
and
reimbursa-­‐
ble
training
dollars
6. California
is
currently
the
seventh
largest
economy
in
the
world,
and
the
state’s
2014
Gross
State
Product
(GSP)
is
ap-­‐
proximately
$2.2
trillion.
California’s
strength
lies
in
the
size,
di-­‐
versity,
and
adaptability
of
its
economy,
as
well
as
in
the
talent
and
range
of
its
population
of
38.8
million
people.
7. In
CNBC’s
2014
Top
States
for
Business,
California
was
ranked
at
number
1
for
Technology
&
Innovation
and
Access
to
Capital.
California
boasts
13
companies
on
Fortune’s
100
Best
Compa-­‐
nies
to
Work
For,
2014.
Additionally,
California
is
tied
for
the
most
Fortune
500
companies
in
the
country
with
54.
8. California
is
the
number
1
state
for
venture
capital
(VC)
invest-­‐
ment,
receiving
four
times
more
venture
capital
(as
a
share
of
gross
state
product)
than
the
national
average.
9. California
is
a
global
export
leader
with
over
$174
billion
in
sales
of
merchandise
goods.
.
International-­‐related
commerce
accounts
for
a
large
percentage
of
the
state’s
economy.
Exports
from
California
reached
229
foreign
markets
and
accounted
for
11
percent
of
the
total
of
U.S.
exports
in
2014.
The
ports
of
Los
Angeles,
Long
Beach,
and
Oakland
are
among
the
busiest
in
the
country.

17.
18
BUSINESS AND INVESTMENT CLIMATE IN THE UNITED STATES
10. California's
strategic
growth
plan
forecasts
an
ambitious
expan-­‐
sion
of
California's
highways,
freeways,
railways,
aviation,
and
electrical
infrastructure,
investments
that
will
create
immediate
jobs
and
pave
a
foundation
for
long-­‐term
economic
growth.
Core
Industry
Sectors
of
Strength:
• Tech
Industry
• Manufacturing
• Agriculture
Upcoming
Sectors
of
Growth:
• Technology
and
High-­‐tech
• Renewable
Energy
Select
Tax
Incentives:
New
Business
incentives
7
:
Governor
Brown
enacted
a
new
Economic
Development
Initiative
that
brought
together
business
leaders,
labor
interests
and
legislators
from
both
sides
of
the
aisle.
This
created
a
more
flexible,
more
competitive
set
of
economic
development
tools
that
include
a
Sales
and
Use
Tax
Exemption
for
Manufacturing,
Bio-­‐
tech
and
R&D
equipment;
a
Hiring
Tax
Credit,
and
the
CA
Competes
Tax
Credit
designed
to
incentivize
companies
to
locate
or
expand
in
CA.
The
Governor’s
Office
of
Business
and
Economic
Development
will
allocate
$789
million
to
companies
that
want
to
expand
in
Cali-­‐
fornia
and
add
jobs.
Other
incentives:
State
Assistance
for
Companies
Locating
in
California:
Firms
looking
to
relocate
or
expand
in
California
can
contact
the
Governor’s
Office
of
Business
and
Economic
Development
(GO-­‐Biz).
GO-­‐Biz
serves
as
the
state’s
single
point
of
contact
for
economic
development
spe-­‐
cialists
advising
on
site
selection,
permit
streamlining,
clearing
regu-­‐
latory
challenges,
small
business
assistance
and
international
trade
development.
GO-­‐Biz
provide
no-­‐fee,
tailored
site
selection
services
to
employers,
corporate
real
estate
executives
and
site
location
con-­‐
sultants
considering
California
for
business
investment.
• California
is
the
largest,
and
most
diverse
economy
in
the
United
States
• California
is
one
of
the
nation’s
fastest
growing
economies
and
national
leader
in
job
creation
• California
leads
the
nation
as
the
Number
1
State
for
manufacturing
and
technology
• California
leads
the
nation
as
the
Number
1
State
for
capi-­‐
tal
access
7
A
summary
of
Business
incentives
in
California:
http://www.business.ca.gov/RelocateExpand/BusinessIncentives.aspx
Photo
Credits:
Todd
Jones/
Calilover/
Rich
Niewiroski,
Jr.

18.
19
BUSINESS AND INVESTMENT CLIMATE IN THE UNITED STATES
• California
leads
the
nation
with
the
most
Fortune
500
companies
• California’s
quality
of
life
standards
is
one
of
the
highest
in
the
nation
• California
is
a
global
leader
in
agricultural
output
and
ex-­‐
ports
• California
is
a
global
leader
in
attracting
and
retaining
in-­‐
ternational
talent
and
investment
• California
is
a
global
leader
in
innovation
and
entrepre-­‐
neurship
• California
is
a
global
leader
in
higher
education
and
work-­‐
force
readiness
For
more
information,
please
contact:
Agency:
California
Governor’s
Office
of
Business
and
Economic
Development
(GO-­‐Biz)
Address:
1325
J
Street,
18
th
Floor,
Sacramento,
CA
95814.
Email:
GOBizBusinessHelp@GOV.CA.GOV
Phone:
877-­‐345-­‐4633
Website:
www.
Business.ca.gov

19.
20
BUSINESS AND INVESTMENT CLIMATE IN THE UNITED STATES
COLORADO
Top
10
Reasons
to
Do
Business
in
Colorado:
1. Tax
Climate:
Colorado
has
a
competitive
business
tax
structure
that
rewards
investment
and
innovation.
With
low
taxes
at
the
state
level,
and
a
wide
range
of
local
tax
structure,
Colorado
of-­‐
fers
almost
unlimited
choices
to
meet
the
needs
of
all
types
of
businesses.
Colorado
has
one
of
the
lowest
income
tax
rates
of
any
state
with
a
corporate
income
tax
(4.63%).
The
state
prides
itself
on
having
a
fair
and
accessible
regulatory
environment
with
competitive
business
costs.
2. Location
and
Logistics:
Located
346
miles
west
of
the
geograph-­‐
ic
center
of
the
U.S.,
Colorado
is
an
excellent
location
for
doing
business
across
America.
Denver
International
Airport’s
(DIA)
connectivity
also
makes
Colorado
a
national
and
international
transit
hub.
Skytrax
ranked
DIA
as
the
third-­‐best
airport
in
North
America.
It
is
also
the
nation’s
5
th
busiest
airport,
and
the
16
th
busiest
globally.
3. Labor
Environment:
Colorado’s
2012
annual
average
wage
rate
for
all
industry
sectors
was
$49,950,
according
to
the
Bureau
of
Labor
Statistics
(Occupational
Employment
&
Wage
Estimates,
2013).
Moreover,
the
Denver
Metro
Area
consistently
main-­‐
tains
a
lower
annual
wage
rate
than
other
major
metropolitan
areas,
making
it
an
ideal
location
for
investors
by
combining
leading
talent
and
low
wage
rates.
4. Access
to
Talent:
Colorado’s
highly
educated
workforce
offers
world-­‐class
R&D
capabilities
to
companies
in
the
areas
of
ICT,
energy,
bioscience,
and
engineering.
The
state
ranks
second
in
the
nation
for
percentage
of
adults
with
bachelor’s
degrees—
many
of
which
are
degrees
and
training
in
STEM.
In
2013,
Forbes
ranked
Colorado
as
the
best
state
for
labor
supply.
5. Cost
of
Doing
Business:
In
addition
to
a
favorable
tax
climate,
Colorado’s
utility
rates
are
equitable
compared
to
other
states
and
costs
are
lower
than
in
many
large
metropolitan
areas.
Ac-­‐
cording
to
the
U.S.
Energy
Information
Administration,
average
household
energy
costs
in
Colorado
($1,551
per
year)
are
23
percent
less
than
the
national
average,
primarily
due
to
histori-­‐
cally
lower
natural
gas
prices
in
the
state.
6. Focus
on
Innovation:
Colorado
is
a
natural
fit
for
start-­‐ups
and
fast-­‐growing
companies.
In
2013,
Bloomberg
ranked
Colorado
as
a
top
10
state
in
innovation.
Engine
and
the
Kauffman
Foun-­‐
dation
have
placed
Boulder,
Fort
Collins,
and
Denver
in
the
1
st
,
2
nd
,
and
4
th
positions,
respectively,
for
cities
with
the
highest
startup
density.
Colorado
is
also
home
to
the
annual
Colorado
Innovation
Summit
(COIN)
which
convenes
hundreds
of
leaders
from
around
the
world
to
discuss
innovation.
7. Colorado’s
Spectacular
Quality
of
Life:
Colorado’s
excellent
quality
of
life
helps
attract
people
from
all
over
the
world.
A
combination
of
stunning
scenery,
recreational
opportunities,
moderate
climate,
world-­‐class
arts
and
culture,
safe
streets,
and
excellent
health
care
and
schools
make
Colorado
an
ideal
place
to
call
home.
8.
Strong
Public-­‐Private
Collaboration:
In
Colorado,
state
and
lo-­‐
cal
governments
work
hand
in
hand
with
the
private
sector
every
day
to
ensure
that
companies
have
the
freedom
and
sup-­‐
port
needed
to
grow
in
an
increasingly
competitive
global
economy.
As
a
community,
there
is
collaboration
to
improve
companies’
access
to
capital
and
markets,
the
public
infrastruc-­‐
ture,
the
education
system,
etc.
9. Appreciation
for
the
Cluster-­‐Based
Development
Model:
Colo-­‐
rado’s
government
and
industry
collaborate
to
enhance
the
state’s
14
major
clusters.
From
ICT
to
aerospace,
Colorado
is
weaving
the
cluster
mentality
into
everything
that
is
done
as
a
community
to
expand
the
economy.
Companies
find
Colorado
to
be
a
truly
welcoming
environment.
10. Large
Indian
Expatriate
Population:
Colorado
is
a
second
home
to
many
people
who
moved
from
foreign
countries,
including
India.
The
community
is
increasingly
a
melting
pot
of
many
cul-­‐
tures
that
all
share
in
the
beautiful
natural
environment,
entre-­‐
preneurial
spirit,
and
innovation-­‐based
economy.

20.
21
BUSINESS AND INVESTMENT CLIMATE IN THE UNITED STATES
Core
Industry
Sectors
of
Strength:
• Aerospace
• Infrastructure
Engineering
• Bioscience
• Technology
and
Information
• Electronics
• Advanced
Manufacturing
• Energy
and
Natural
Resources
Upcoming
Sectors
of
Growth:
• Smart
Grid
Modeling,
Testing
and
Technology
• Natural
Gas
Science
and
Technology
• Oil
Shale
Science
and
Technology
• Biofuels
Science
and
Technology
• Energy
Efficiency,
Storage
and
Transmission
Tech.
• Cleaner
Coal
Technology
• Transportation
Tech:
EVs,
NGVs,
Efficient
Diesels
• Security
and
Defense
Technology
• Film,
TV
and
Media
Creation
and
Distribution
• Infectious
Disease
Modeling
and
Treatments
Select
Tax
Incentives:8
1. Job
Creation
Incentive
Tax
Credit
(JGITC):
The
performance-­‐
based
Job
Growth
Incentive
Tax
Credit
provides
a
state
income
tax
credit
to
businesses
undertaking
job
creation
projects
that
would
not
occur
in
Colorado
without
this
program.
Businesses
need
to
create
at
least
20
new
jobs
in
Colorado,
with
an
aver-­‐
age
yearly
wage
of
at
least
100%
of
the
county
average
wage
8
For
more
information
on
the
various
incentives
being
offered
by
the
State
of
Colorado,
please
visit
http://www.advancecolorado.com/funding-­‐
incentives/incentives.
Photo
Credits:
David
Shankbone/
Clean
Energy
Collective
and
Martifer
Solar
USA/
Hogs555
rate
based
on
where
the
business
is
located.
A
business
located
in
an
Enhanced
Rural
Enterprise
Zone
has
to
create
at
least
five
new
jobs
in
Colorado,
with
an
average
yearly
wage
of
at
least
100%
of
the
county
average
wage.
All
new
jobs
must
be
main-­‐
tained
for
at
least
one
year
after
the
positions
are
hired
to
qual-­‐
ify.
2. Strategic
Fund
Incentive
(SF):
The
SF
provides
an
upfront
per-­‐
formance-­‐based
incentive
commitment
to
businesses
that
will
create
and
hire
net
new,
full-­‐time,
permanent
jobs
paying
at
or
above
average
wages,
and
that
meet
other
specified
require-­‐
ments.
The
cash
incentive
award
may
range
from
$2,000-­‐
$5,000
per
net
new,
full-­‐time,
job
created,
based
on
the
aver-­‐
age
wage
rate
of
the
new
jobs
actually
created,
the
location
of
those
jobs,
and
other
factors.
The
program
is
designed
to
sport
highly
desirable
and
high-­‐impact
job
creation
opportunities.

21.
22
BUSINESS AND INVESTMENT CLIMATE IN THE UNITED STATES
3. Enterprise
Zone
Program:
Colorado's
Enterprise
Zone
Program
provides
tax
incentives
to
encourage
businesses
to
expand
or
locate
in
designated
economically
distressed
areas
of
the
state.
Businesses
located
in
a
zone
may
qualify
for
nine
different
En-­‐
terprise
Zone
tax
credits
and
incentives
to
encourage
job
crea-­‐
tion
and
investment
in
these
areas.
4. Local
Government
Incentives:
Local
governments
can
provide
property
tax
credits
or
incentive
payments
based
on
the
amount
of
increased
property
taxes
for
qualifying
new
business
activity
in
their
jurisdictions.
5. Job
Training
Grant
Programs:
The
Colorado
FIRST
and
Existing
Industry
grants
are
jointly
administered
by
OEDIT
and
the
Colo-­‐
rado
Community
College
System.
Colorado
job
training
grants
are
for
companies
that
are
relocating
to
or
expanding
in
Colo-­‐
rado
and
provide
funds
to
net
new
hires.
Existing
Indus-­‐
try
grants
focus
on
providing
assistance
to
established
Colorado
companies
in
order
to
remain
competitive
within
their
industry,
adapt
to
new
technology,
and
prevent
layoffs.
6. Public
Infrastructure
Grants:
The
Infrastructure
Assistance
pro-­‐
gram
is
designed
to
create
new
permanent
jobs
and
retain
ex-­‐
isting
jobs,
primarily
for
low-­‐
and
moderate-­‐income
per-­‐
sons.
The
state
may
be
able
to
provide
specific
support
to
re-­‐
tain
jobs
or
offers
business-­‐friendly
tools
that
assist
in
retaining
jobs
(such
as
the
Enterprise
Zone
Program)
for
this
grant.
7. Biotechnology
Sales
and
Use
Tax
Refund:
Colorado
promotes
its
biotechnology
industries
by
providing
them
with
a
taxpayer-­‐
friendly
means
to
recover
the
sales
and
use
previously-­‐paid
tax
expenses
on
equipment
and
supplies
used
for
research
and
de-­‐
velopment.
8. Manufacturing
Sales
and
Use
Tax
Exemption:
Colorado
encour-­‐
ages
manufacturers
to
locate
their
manufacturing
operations
in
Colorado,
recognizing
their
importance
to
the
state's
economy.
Colorado
provides
an
exemption
from
state
sales
and
use
tax
on
purchases
of
manufacturing
machinery,
machine
tools
and
parts.
9. Sales
Tax
Exemption
on
Components
for
Production
of
Energy
from
Renewable
Energy
Sources:
Components
used
in
the
pro-­‐
duction
of
electricity
from
a
renewable
energy
source,
including
wind,
are
exempt
from
state
sales
and
use
tax.
Components
used
in
solar
thermal
systems
are
also
exempt
from
state
sales
and
use
tax.
10. Advanced
Industry
Investment
Tax
Credit:
The
Advanced
Indus-­‐
try
Investment
Tax
Credit
helps
Colorado
advanced
industry
companies
receive
capital
from
Colorado
investors.
11. Aviation
Development
Zone
Tax
Credit:
A
business,
or
any
por-­‐
tion
of
a
business
that
is
involved
in
the
maintenance
and
re-­‐
pair,
completion
or
modification
of
aircraft
located
within
the
boundaries
of
an
airport
designated
as
an
Aviation
Develop-­‐
ment
Zone,
may
qualify
for
a
state
income
tax
credit
of
$1,200
per
new
full-­‐time
employee.
Other
Incentives:
1. Advanced
Industries
Accelerator
Programs:
The
Advanced
In-­‐
dustries
(AI)
Accelerator
Programs
promote
growth
and
sus-­‐
tainability
in
Colorado's
seven
advanced
industries
by
helping
drive
innovation,
accelerate
commercialization,
encourage
pub-­‐
lic-­‐private
partnerships,
increase
access
to
early
stage
capital
and
create
a
strong
ecosystem
that
increases
the
state’s
global
competitiveness.
a. Proof-­‐of-­‐Concept
Grant
b. Early-­‐Stage
Capital
and
Retention
Grants
c. Infrastructure
Funding
2. Colorado
Capital
Access
(CCA)
-­‐
SSBCI:
Colorado
Capital
Access
(CCA)
creates
greater
access
to
capital
for
small
and
medium
sized
businesses
operating
in
Colorado
by
using
small
amounts
of
public
resources
to
encourage
financing
by
eligible
lenders
(such
as
banks
and
community
development
financial
institu-­‐
tions).
3. Cash
Collateral
Support
(CCS)
–
SSBCI:
Cash
Collateral
Support
(CCS)
creates
greater
access
to
capital
for
small
and
medium
sized
businesses
operating
in
Colorado
that
are
experiencing
difficulty
securing
credit
due
to
collateral
shortfalls.
CCS
uses
small
amounts
of
public
resources
to
encourage
private
lender
financing.
The
program
provides
a
deposit
of
cash
as
collateral
for
a
business
loan
or
credit
facility
when
a
business
cannot
meet
the
lender’s
collateral
requirements.
4. Colorado
Credit
Reserve:
The
Colorado
Credit
Reserve
(CCR)
Program
increases
the
availability
of
credit
to
small
businesses
in
Colorado
by
establishing
a
pooled
loan-­‐loss
reserve
fund
that
banks
or
sponsored
lending
entities
may
access
to
recover
loss-­‐
es
associated
with
loans
registered
with
the
program.
OEDIT
works
with
the
Colorado
Housing
and
Finance
Authority
(CHFA)
to
administer
this
program.
5. Venture
Capital
Authority
(VCA):
The
Colorado
Venture
Capital
Authority
(VCA)
was
established
in
2004
to
make
seed-­‐
and
ear-­‐
ly-­‐stage
capital
investments
in
businesses.
The
VCA
selected
fund
manager
High
Country
Venture,
LLC,
and
established
Colo-­‐
rado
Fund
I
and
Colorado
Fund
II,
each
with
approximately
$25
million.
High
Country
Venture
is
independently
operated
and
generally
makes
funding
decisions.
State
approval
is
limited
to
ensuring
that
businesses
receiving
funding
meet
minimum
specified
requirements.
The
minimum
and
maximum
invest-­‐
ment
size
generally
ranges
from
$250,000
-­‐
$3.375
million.
6. CDGB
Business
Loan
Funds:
Every
year,
the
State
of
Colorado
receives
an
allocation
of
federal
funds
to
use
for
both
commu-­‐
nity
and
economic
development
efforts
within
the
state.
Cur-­‐
rently,
Colorado
has
14
Business
Loan
Fund
locations,
which
have
service
areas
covering
the
majority
of
the
state’s
rural
ar-­‐
eas.
7. Certified
Capital
Companies
(CAPCO)
Program:
The
Certified
Capital
Companies
Program
(CAPCO)
makes
venture
capital
funds
available
to
new
or
expanding
small
businesses
through-­‐
out
Colorado.
The
program
encourages
new
business
develop-­‐
ment
and
expansions
of
businesses
by
making
a
$75
million
statewide
pool
available
for
investment
throughout
Colorado,
and
a
$25
million
rural
pool
available
for
investment
in
desig-­‐
nated
rural
counties
in
Colorado.