< PreviousIn the following pages, you’ll fi nd demographic, GDP and credit rating data insights, legislative and policy updates, agency information, governor quotes and, in some cases, “Project Watch” spotlights* that shed light on the economies, workforce and business climates of all states. You’ll also fi nd our “Rankings that Matter,” which include each state’s rank in the following economic development yardsticks: e Tax Foundation State Tax Competitiveness Index (Oct. ) Higher Education R&D Expenditure (Dollars in thousands), according to the National Center for Science and Engineering Statistics, Higher Education Research and Development Survey Percent improvement in ACT National Career Readiness Certifi cates earned by working-age adults between Oct. and Oct. Workers’ Compensation Premium Rate State Ranking by Information Technology and Research Section, Central Services Division, Oregon Department of Consumer and Business Services (October ) U.S. Energy Information Administration, Lowest Industrial Electric Power Cost (¢/ kWh, ) Fiscal Health (based on data from Pew Charitable Trusts’ Fiscal resource) is report was compiled, edited and designed by Mark Arend, Adam Bruns, Gary Daughters, Alexis Elmore, Lindsay Lopp, Karen Medernach, Daniel Boyer, McKenzie Wright, Brian Espinoza and Richard Nenoff . 110 JANUARY 2025 SITE SELECTION Alaska Dept. of Commerce Community & Econ. Dev. 550 W 7th Ave., Suite 1535 Anchorage, AK 99501 Julie Sande C OMMISSIONER 907-465-2500 https://www.commerce.alaska.gov/web “Our oil, natural gas and minerals of all kinds will remain in high demand around the world for decades to come, and we’ll continue to demonstrate that nobody can develop those resources better than Alaska.” — Gov. Mike Dunleavy, State of the State address, Jan 30, 2024 GDP GDP Growth Rate Trend 48 th 2023 GDP (in millions of current US$) $54,060 -7 -5 -3 -1 1 3 5 7 20232022202120202019 Alaska Pop. (2024): 733,583 Pop. growth 2024–2029: -0.02% Median household income (2024): $93,571 Median age (2024): 36.5 Credit Rating: AA / Stable Right-to-work state: No LEGISLATIVE & POLICY UPDATE Alaska’s Technical Vocation and Education Program (TVEP), which supports certifi cate training in construction, equipment operations and maintenance and other manufacturing and maritime fi elds, was extended with no ensuing sunset date and received a funding increase. House Bill 148, signed by Gov. Dunleavy in July, also expands the Alaska Performance Scholarship (APS), and extends the Education Tax Credit (ETC) program. Awards from APS — available to qualifying graduates of Alaska high schools — will increase between $1,100 and $2,200 per student per academic year. HB 148 increases the 50% ETC business credit for contributions to educational institutions from $1 million to $3 million and extends the sunset date through 2029. ETC encourages businesses to make charitable investments in Alaska’s educational institutions. Also signed in July, HB 104 is to provide for a speedier process governing certain timber sales. It updates forestry statutes to comport with evolving industry demands and creates a streamlined category for state forestland with high annual danger of fi res, insect infestations and disease. HB 237 is intended to bolster the availability of qualifi ed nurses by allowing the state Board of Nursing to issue temporary permits to nurses seeking to reinstate their lapsed Alaska licenses as they work to meet reinstatement requirements. Higher Ed. R&D Expenditure in $000s: $238,738 Number of NCRCs: 49,434 | Percent Improvement 2023–2024: 0.90% Business Tax Climate Rank Change 2024–2025: 0 Industrial power cost per kWh: $18.70 Total Revenue as Share of Total Expenses, FY 2008-2022: 129.18% 2024 Workers’ Comp Index Rate: 1.37 SITE SELECTION JANUARY 2025 111 Total Revenue as Share of Total Expenses, FY 2008-2022: 95.81% LEGISLATIVE & POLICY UPDATE In May, Gov. Lamont announced the creation of the Connecticut Innovation Clusters Program, a $100 million initiative to support the continued growth of critical sectors of the Connecticut economy, including biotechnology, fi nancial technology, insurance technology and advanced manufacturing. The program, stated a release, “will prioritize funding for catalytic capital projects that contribute to the development of a campus-setting and cohesive sense of place that complement the state’s existing transit-oriented investments and incorporate a strong focus on workforce training, economic development, neighborhood vibrancy and regional stakeholder collaboration.” Also in May, Gov. Lamont signed HB 5434, regarding Connecticut’s Community Economic Development Fund (CEDF), focused on small business lending. Key changes involve the establishment of a new board of directors to oversee the fund, allowing CEDF to assist certain challenged census tracts and enabling it to conduct business outside of Connecticut under certain conditions. HB 5300 supports the Invest CT Fund program, which helps provide capital to entrepreneurs and small businesses that might struggle to obtain traditional fi nancing. The law expands the program's scope to allow consideration of certain businesses that do not have their principal business operations in Connecticut. Connecticut Dept. of Econ. & Cmty. Dev. 450 Columbus Blvd. Hartford, CT 06103 Daniel O’Keefe C OMMISSIONER 860-500-2300 https://portal.ct.gov/decd “Connecticut has the best educated and best trained workforce in the nation, which is the number one resource needed to conceive, develop and produce the cutting-edge products and services that revolutionize industries and make businesses thrive.” — Gov. Ned Lamont, May 30, 2024 Higher Ed. R&D Expenditure in $000s: $1,711,973 Number of NCRCs: 3,809 | Percent Improvement 2023–2024: 4.10% Business Tax Climate Rank Change 2024–2025: 0 Industrial power cost per kWh: $15.69 2024 Workers’ Comp Index Rate: 1.64 GDP 23 rd 2023 GDP (in millions of current US$) $286,628 -7 -5 -3 -1 1 3 5 20232022202120202019 Connecticut Pop. (2024): 3,626,005 Pop. growth 2024–2029: -0.15% Median household income (2024): $94,033 Median age (2024): 41.5 Credit Rating: AA- / Stable Right-to-work state: No GDP Growth Rate Trend Delaware Prosperity Partnership The Mill, Suite 731 1007 N. Orange St. Wilmington, DE 19801 Kurt Foreman P RESIDENT & CEO 302-576-6586 https://www.choosedelaware.com “We’re going to look hard at when contributions are made to the state pie. We’ve got to make sure that those dollars go back into communities because in many communities, that’s not happening.” — New Castle County Executive Matt Meyer, during his successful campaign for governor GDP 42 nd 2023 GDP (in millions of current US$) $78,014 -4 -3 -2 -1 0 1 2 3 4 20232022202120202019 Delaware Pop. (2024): 1,032,895 Pop. growth 2024–2029: 0.56% Median household income (2024): $88,002 Median age (2024): 41.8 Credit Rating: AAA / Stable Right-to-work state: No LEGISLATIVE & POLICY UPDATE The Delaware Energy Solutions Act of 2024 (SB265), creates a framework for the state to solicit and give approval for off shore wind projects along Delaware’s coastlines. The State Energy Offi ce is charged with drafting the plan, touted by supporters as a catalyst for the development of infrastructure in support of Delaware’s climate goals, which include 40% renewable energy by 2035. Additional energy legislation signed in 2024 included measures to further develop Delaware’s EV infrastructure, expand access to solar and to compel county governments to factor climate change into their comprehensive plans. HB 9 aims to transition the state’s vehicle fl eet to zero-emission vehicles by 2040. On the last day of June, two-term-limited Gov. John Carney signed an operating budget of $6.1 billion and supplemental ($168 million) and capital ($1.1 billion) budgets. The operating budget (SB 325) includes $132 million for state employee and state retiree health costs, $17 million for mental health support in Delaware public schools, $10 million for childhood fi nancial assistance and $10 million to the Opportunity Funding program — instituted in 2019 — that provides funding for vulnerable students in public schools. Higher Ed. R&D Expenditure in $000s: $436,937 Number of NCRCs: 431 | Percent Improvement 2023–2024: 0.23% Business Tax Climate Rank Change 2024–2025: +3 Industrial power cost per kWh: $7.85 Total Revenue as Share of Total Expenses, FY 2008-2022: 100.58% 2024 Workers’ Comp Index Rate: 1.34 GDP Growth Rate Trend112 JANUARY 2025 SITE SELECTION LEGISLATIVE & POLICY UPDATE In May, Gov. Ivey signed into law a far-reaching legislative package, “Working for Alabama,” crafted as a comprehensive eff ort to transform Alabama’s workforce, streamline economic development eff orts and invest in Alabama communities, particularly in rural areas. In October, she took receipt of a new strategic plan for statewide economic development. Called Catalyst, the framework replaces Accelerate Alabama, which was adopted in 2012 and was credited with driving $67 billion in capital investment and nearly 170,000 job commitments. Catalyst was created by a task force led by the Economic Partnership of Alabama, Innovate Alabama and the Retirement Systems of Alabama and supported by McKinsey & Company and research teams from Troy University and Alabama A&M University. The plan identifi es eight priority industry sector: Mobility, Defense, Metal and Advance Materials, Chemical Manufacturing, Forestry and Woods, Agriculture and Food, Bioscience and Technology. A new Short-term Credential Scholarship Program is to provide residents with up to $4,500 in reimbursements for tuition, fees and materials to pursue short- term credentials aligned with in-demand occupations. The initiative is being administered by the Alabama Community College System. Alabama Dept. of Commerce 401 Adams Ave., 6th Floor Montgomery, AL 36130 Ellen McNair S ECY . OF C OMMERCE 334-242-0400 https://www.madeinalabama.com “We must have an economic development strategy that prepares Alabama for the 2030s today. New technologies are revolutionizing every aspect of the business world, and it’s vitally important that we’re ready for these fast-paced changes so we can remain competitive for projects that create good jobs and inject vitality into communities.” — Gov. Kay Ivey, Oct 1, 2024 Higher Ed. R&D Expenditure in $000s: $1,468,247 Number of NCRCs: 402,014 | Percent Improvement 2023–2024: 11.36% Business Tax Climate Rank Change 2024–2025: +1 Industrial power cost per kWh: $7.10 Total Revenue as Share of Total Expenses, FY 2008-2022: 103.40% 2024 Workers’ Comp Index Rate: 1.38 GDP 27 th 2023 GDP (in millions of current US$) $245,355 -4 -3 -2 -1 0 1 2 3 4 5 6 20232022202120202019 Alabama Pop. (2024): 5,133,182 Pop. growth 2024–2029: 0.31% Median household income (2024): $62,546 Median age (2024): 40.0 Credit Rating: AA / Stable Right-to-work state: Yes PROJECT WATCH M eridiam, an infrastructure development fi rm, is investing $230 million to deliver a fi ber-optic network across rural, south- central Alabama. The fi rm announced plans in March to develop, build and manage the network that’s to eventually enable fi ber broadband to 53,000 households and businesses across more than 300 miles and including Selma, Demopolis and 15 other small cities. In February, Gov. Ivey announced grants totaling more than $336 million awarded to internet service providers to expand broadband availability in underserved areas of the state. Photo: Getty Images GDP Growth Rate Trend114 JANUARY 2025 SITE SELECTION PROJECT WATCH T SMC in April announced plans to build a third semiconductor chipmaking fab at the TSMC Arizona site in Phoenix. The company’s fi rst fab is on track to begin production in the fi rst half of 2025. The announcement of the third fab was coupled by the news that the Taiwan-based technology giant and the Biden Administration had signed preliminary terms for up to $6.6 billion in direct funding under the CHIPS and Science Act. TSMC is also eligible for up to $5 billion in loans. The third fab is to bring TSMC’s total investment in Arizona to more than $65 billion, making the Phoenix site the largest foreign direct investment in Arizona history. Combined, the investments are expected to deliver 6,000 permanent technology jobs. Photo: Getty Images GDP Growth Rate Trend LEGISLATIVE & POLICY UPDATE In November, Gov. Hobbs announced the launch of a semiconductor-focused “Future48” Workforce Accelerator at GateWay Community College in Phoenix. The facility is supported by a $13 million investment from the Arizona Commerce Authority (ACA), $5 million from the Governor’s Offi ce and $4.5 million in federal appropriations. Launched in 2023, the Future48 Workforce Accelerators are supported through a $30 million investment from ACA to build six new advanced manufacturing training facilities in partnership with local community colleges. House Bill 2210, signed into law in mid-June, reauthorizes the ACA to continue leading state business incentives and attracting companies to Arizona through 2029. The state agency was scheduled to sunset in 2024. The reauthorization followed heated debate over ACA’s spending on marketing eff orts, and includes a requirement that ACA board meetings be recorded and posted online for public review. ACA must also report on job creation, capital investment and higher wages, as well as track the status of incentive agreements. In August, Gov. Hobbs announced the reactivation of the Greater Arizona Development Authority (GADA), inactive for nearly a decade. GADA assists rural communities and Tribal governments with public infrastructure projects by leveraging private fi nancing. Arizona Commerce Authority 100 N 7th Avenue Suite 400 Phoenix, Arizona 85007 Sandra Watson P RESIDENT & CEO 602-845-1200 https://www.azcommerce.com “With our investments in Future48 workforce accelerators, we will prepare thousands of Arizonans every year for jobs building our nation’s future in industries like semiconductors, renewable energy, and aerospace and defense” — Gov. Katie Hobbs, State of the State address, Jan 8, 2024 Higher Ed. R&D Expenditure in $000s: $1,738,688 Number of NCRCs: 10,284 | Percent Improvement 2023–2024: 4.13% Business Tax Climate Rank Change 2024–2025: -1 Industrial power cost per kWh: $8.11 Total Revenue as Share of Total Expenses, FY 2008-2022: 105.17% 2024 Workers’ Comp Index Rate: 0.87 GDP 17 th 2023 GDP (in millions of current US$) $422,400 -1 0 1 2 3 4 5 6 7 20232022202120202019 Arizona Pop. (2024): 7,517,580 Pop. growth 2024–2029: 0.74% Median household income (2024): $79,653 Median age (2024): 39.6 Credit Rating: AA / Positive Right-to-work state: Yes116 JANUARY 2025 SITE SELECTION Arkansas ED Commission 1 Commerce Way, STE 601 Little Rock, AR 72202 Clint O’Neal E XEC . D IR . 501-682-7350 https://www.arkansasedc.com “Arkansans are looking at Washington and seeing nothing but failure. Today they can look at Little Rock and get some of their economic confi dence back.” — Gov. Sarah Huckabee Sanders, signing new state tax cuts into law, June 19, 2024 GDP 35 th 2023 GDP (in millions of current US$) $142,861 -2 -1 0 1 2 3 4 5 6 20232022202120202019 Arkansas Pop. (2024): 3,075,105 Pop. growth 2024–2029: 0.33% Median household income (2024): $57,875 Median age (2024): 39.2 Credit Rating: AA / Positive Right-to-work state: Yes LEGISLATIVE & POLICY UPDATE Act I of 2024 lowered the top individual tax rate from 4.4% to 3.9% and the top corporate rate from 4.8% to 4.3%. The homestead property tax credit was increased from $425 to $500. These were the third tax cuts signed by Gov. Sanders in 15 months. The total estimated cost to the state budget is around $483 million in the fi rst year, with an ongoing annual impact of approximately $322 million. The legislation requires $290 million in general revenue to be placed in reserve to cover potential lost revenue. In May, Gov. Sanders signed Senate Bill 78 and SB 79, which address rising concerns over separate aspects of cryptocurrency mining. In mid-November, Gov. Sanders announced workforce training grants totaling $48 million awarded to 19 educational organizations. The funding is intended to support target industries that include lithium mining and production, steel, and aerospace and defense. Nearly half of the money is geared toward supporting advanced manufacturing. Top recipients include Arkansas State University, National Park College, SAU Tech, U of A Community College at Batesville and the University of Arkansas-Fort Smith. Arkansas State’s Jonesboro campus received the highest single grant amount, $7.5 million, to focus on steel production. Higher Ed. R&D Expenditure in $000s: $425,398 Number of NCRCs: 117,677 | Percent Improvement 2023–2024: 11.79% Business Tax Climate Rank Change 2024–2025: +2 Industrial power cost per kWh: $6.87 Total Revenue as Share of Total Expenses, FY 2008-2022: 102.79% 2024 Workers’ Comp Index Rate: 0.65 GDP Growth Rate Trend PROJECT WATCH O n November 18, Weyerhaeuser announced an estimated $500 million investment to build a new facility near Monticello to manufacture Timberstrand®, a laminated strand lumber. The new facility is to create 200 jobs in south Arkansas, while expanding Weyerhaeuser’s engineered woods capacity by some 10 million cubic feet annually. The plant will utilize southern yellow pine as a feedstock and use a biomass-fueled cogeneration system to fully support its electrical needs. In October, the University of Arkansas at Monticello broke ground on a new Forest Research Center supported by $16 million of state funding. “Between Weyerhaeuser’s announcement and UAM’s expansion,” said Gov. Sanders, “we’re growing that portion of the state and investing in Arkansas’ forestry industry for generations to come.” Photo: Getty ImagesNext >