糖心Vlog传媒

The Arizona Legislature wrapped up its 2026 session after 153 days, leaving the state’s business community with a mix of accomplishments to celebrate and concerns about Arizona鈥檚 long-term competitiveness.

Business leaders pointed to several significant victories, including expanded health coverage options for small employers, additional infrastructure funding to support economic development projects, preservation of key economic development tools, and a bipartisan budget that avoided broad-based tax increases. At the same time, they expressed concern about reductions to public university funding, the repeal of a longstanding job-creation incentive, and policy changes affecting future data center investment.

鈥淟ike most sessions in divided government, this legislative session delivered a mixed bag of results for job creators,鈥� said Courtney Coolidge, executive vice president of the 糖心Vlog传媒 of Commerce & Industry. 鈥淭he good news is that Arizona continues to demonstrate a commitment to economic growth, competitive tax policy, and job creation. The challenge moving forward is ensuring we don’t undermine the very advantages that have made Arizona one of the most attractive places in the country to invest and grow.鈥�

Among the business community’s top priorities this year was legislation aimed at helping small employers provide affordable health coverage to workers.

HB 2693, sponsored by Rep. David Livingston and signed into law by Gov. Katie Hobbs, creates a pathway for small businesses to join together through a statewide business organization to purchase health coverage. Supporters say the measure will allow smaller employers to increase purchasing power, reduce costs, and provide more stable benefit options.

鈥淪mall businesses often face the greatest challenges when it comes to offering competitive health benefits,鈥� Coolidge said. 鈥淭his legislation creates a voluntary, market-based option that gives employers more flexibility and employees more choices.鈥�

Another significant victory came through the state budget, which included additional funding capacity for Arizona’s Public Infrastructure Program, a tool frequently used to support large-scale economic development projects.

The program helps communities finance roads, water systems, and other infrastructure needed to accommodate major investments. It has been utilized in projects involving companies such as TSMC, Intel, Amkor, and LG Energy Solution Arizona.

鈥淎rizona’s economic success depends on our ability to compete for transformational projects,鈥� Arizona Manufacturers Council Executive Director Grace Appelbe said. 鈥淭hose investments don’t happen without infrastructure, and communities need tools that allow them to prepare for growth.鈥�

The Chamber also praised lawmakers for largely preserving the Arizona Competes Fund, one of the state鈥檚 primary economic development incentives. Early budget discussions included proposals to sweep money from the fund to help address budget shortfalls, but the final agreement maintained most of the program.

In addition, the budget included full conformity with recent federal tax changes, avoided broad-based business tax increases, and provided funding to support Arizona鈥檚 ongoing Colorado River negotiations.

Still, business leaders say several decisions made during the session could create challenges in the years ahead.

One of the biggest concerns was the repeal of the Quality Jobs Tax Credit, a program designed to encourage companies to create high-wage jobs and make major capital investments in Arizona.

The Chamber also expressed concern over a three-year pause on issuing new sales tax exemption certificates for future data center projects. While existing projects will continue under current agreements, supporters of the incentive argue that uncertainty surrounding future projects could make Arizona less competitive in attracting additional investment.

鈥淭he state鈥檚 economic momentum didn’t happen by accident,鈥� Coolidge said. 鈥淔or years, Arizona has built a reputation for consistency and predictability. We don鈥檛 want to send a message to investors that they can鈥檛 plan for the long-term.鈥�

Higher education funding remains another area of concern for the business community.

Arizona employers have increasingly emphasized the importance of workforce development as the state鈥檚 economy continues to expand. Business advocates warned that cuts to public universities could affect the talent pipeline needed to support growth in industries ranging from advanced manufacturing and semiconductors to healthcare and technology.

鈥淲orkforce remains one of the defining economic issues facing Arizona,鈥� Coolidge said. 鈥淚f we want to continue attracting investment and creating opportunity, we have to continue investing in the talent that makes those opportunities possible.鈥�

Attention will now shift from the Legislature to voters, who will weigh in on several measures referred to the ballot by lawmakers, as well as potential citizen initiatives that are still gathering signatures.

For Arizona employers, the end of the legislative session marks the beginning of another important phase in shaping the state’s economic future.

鈥淎rizona remains in a strong position,鈥� Coolidge said. 鈥淚n the months ahead, we鈥檒l encourage voters to elect leaders who will continue making the decisions necessary to stay ahead of states that are competing for the same jobs, investments, and talent.鈥�

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