Alabama gets high rankings in publication’s ‘Top States for Doing Business’ report – Yellowhammer News

Alabama has once again demonstrated its commitment to fostering a thriving business environment, earning a No. 8 ranking in Area Development’s 2024 “Top States for Doing Business” report.

This marks another year of Top 10 recognition for the state, as the national publication highlights Alabama’s competitive edge across multiple business-friendly categories.

The Area Development rankings, which were dominated by Southern states, evaluates factors critical to business success, such as tax policies, workforce development, regulatory environments, and infrastructure.

“The Top States for Doing Business know a thing or two about creating an attractive business environment,” the publication notes.  “The top states closely manage their taxes and incentive programs, keep their labor force fresh, trained and accessible and maintain infrastructure like energy and water.

“They’re also responsive to business needs and to changes in climate,” it adds.

Alabama excelled in several key areas, including earning a No. 1 ranking for its property tax environment, as well as Top 3 rankings for workforce training and cost of doing business.

Here’s a full breakdown:

No. 1 — Favorable Property Tax Environment
No. 3 — Workforce Training Program
No. 3 — Overall Cost of Doing Business
No. 3 — Favorable Regulatory Environment
No. 5 — Business Incentives Programs
No. 6 — Energy Availability and Cost
No. 6 — Site Readiness Programs
No. 10 — Access to Qualified Labor

“Alabama continues to be recognized as a premier destination for businesses looking to grow and succeed,” said Ellen McNair, Secretary of the Alabama Department of Commerce. “Our consistent presence in the Top 10 underscores the strength of our workforce, the business-friendly policies we’ve implemented, and the critical partnerships we’ve cultivated between the public and private sectors.

“These rankings affirm that Alabama is a state where companies can thrive,” she added.

Alabama’s top performance in the Property Tax Environment category was noted, with Area Development citing the state’s favorable tax structure. A key legislative change, House Bill 73 (HB73), capped annual property tax assessment increases at 7% following reappraisals, providing much-needed stability for businesses.

“This legislative move, signed into law by Governor Kay Ivey, aims to provide greater predictability and stability in property tax expenses for businesses,” the publication says. “The cap helps protect businesses from sudden spikes in property taxes, making long-term planning more feasible and secure.”

Alabama also received high praise for its AIDT workforce development agency, with the state ranking No. 3 for its Workforce Training Programs. AIDT continues to play a pivotal role in attracting new investments and supporting the state’s industries through tailored recruitment and training services.

“Our workforce is the backbone of Alabama’s economic strength, and AIDT’s innovative approach to skills development ensures that our businesses have the talent they need to compete globally,” Secretary McNair said.

“We are proud of our workforce and the programs we’ve built to support them, which is why Alabama consistently ranks among the best states for doing business.”

Earlier this year, Area Development honored Alabama with a Silver Shovel Award for economic development success in 2023.

This story originally appeared on the Alabama Department of Commerce’s Made in Alabama website.