News Summary
Alabama has been recognized as one of the top 10 states for doing business, ranking 8th in Area Development’s 2025 report. The state excels in favorable property tax, business incentives, and cost of doing business, showcasing its commitment to a supportive business environment. Governor Kay Ivey emphasizes Alabama’s low taxes and smart investments in infrastructure and workforce development, making it attractive for both established companies and startups. With significant new capital investments announced, Alabama is reinforcing its economic momentum and competitive advantages.
Alabama has achieved a significant milestone by being named one of the top 10 states for doing business, according to Area Development magazine’s 2025 report, where it ranks No. 8 overall. This recognition underscores Alabama’s commitment to creating a favorable business environment fueled by a combination of low taxes, tailored incentives, and a strong infrastructure.
One of the standout features of Alabama’s business climate is its ranking as the top state for Favorable Property Tax. The state also earned a top-five finish in Business Incentive Programs, placing at No. 4. In addition, Alabama stands at No. 3 for Overall Cost of Doing Business, highlighting its competitive advantages across numerous categories.
Governor Kay Ivey has stated that Alabama is “open for business and built for success,” primarily due to its low taxes, reduced regulatory burdens, and continuous investments in infrastructure and workforce development. The state has also gained recognition in several other notable categories:
- No. 3 in Regulatory Framework
- No. 6 in Cooperative Local & State Government
- No. 6 in Site Readiness Programs
- No. 7 in Workforce Training Programs
- No. 7 in Availability of Sites
- No. 9 in Energy Cost
The rankings are based on evaluations by a national panel of location consultants who assessed economic development factors, including tax structures, incentives, workforce readiness, and site availability. The 2025 report places considerable emphasis on speed, workforce readiness, and infrastructure as critical priorities for states aiming for economic development.
In recent years, Alabama has consistently maintained a top 10 position in Area Development’s business-friendliness survey, which coincides with Governor Ivey’s tenure. Furthermore, the state has made strides in other national rankings; for instance, it moved up to No. 19 in CNBC’s Top States for Doing Business 2025 list, showing significant progress in the workforce category.
Additionally, Alabama received commendations in various industry-specific categories from Business Facilities, including No. 3 in Customized Workforce Training. These achievements reflect the state’s strategic initiatives such as the renewal of the Alabama Jobs Act and the establishment of the Energy Infrastructure Bank, which have contributed to making Alabama a more attractive place for business operations.
To reinforce its economic momentum, Alabama announced nearly $2 billion in new capital investment across high-impact projects as of September. This extensive investment demonstrates the state’s ongoing commitment to providing essential resources for businesses ranging from global manufacturers to startup companies, further strengthening Alabama’s growth across various sectors.
The Area Development rankings reveal a broader shift in corporate priorities, highlighting the increasing importance of execution and reliability for business investment evaluations. As Alabama continues to enhance its business framework through advantageous policies and comprehensive programs, it is well-positioned to support both established companies and new ventures that contribute to its robust economic landscape.
Deeper Dive: News & Info About This Topic
- Wiregrass Daily News
- Wikipedia: Doing Business
- Alabama News Center
- Google Search: Alabama business report 2025
- AL.com
- Encyclopedia Britannica: Economy
- Yellowhammer News
- Google News: Alabama top state for doing business
- Business Alabama
Author: STAFF HERE BIRMINGHAM WRITER
The BIRMINGHAM STAFF WRITER represents the experienced team at HEREBirmingham.com, your go-to source for actionable local news and information in Birmingham, Jefferson County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as the Sidewalk Film Festival, Sloss Music & Arts Festival, Magic City Classic, and civil rights commemorations. Our coverage extends to key organizations like the Birmingham Business Alliance and the Birmingham Civil Rights Institute, plus leading businesses in healthcare, finance, and manufacturing that power the local economy such as UAB Medicine, Regions Bank, and Encompass Health. As part of the broader HERE network, including HEREHuntsville.com, we provide comprehensive, credible insights into Alabama's dynamic landscape.
