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New tax reductions should bring new manufacturers to Arizona

Senator Lesko’s bill signed into law

A bill sponsored by Senator Debbie Lesko has been signed by Governor Doug Ducey, and the business community is already saying it could go a long way to attracting and retaining manufacturers in Arizona.

Senator Lesko’s strike-everything amendment to HB 2676 exempts the tax on electricity and natural gas to manufacturers. The elimination of this outdated sales tax will quickly boost Arizona’s efforts to grow manufacturing businesses. Budget experts estimate it could have a $20 million positive impact for the state’s manufacturing sector and for job creators.

“One of my goals here at the Legislature is to look for ways to improve Arizona’s business climate,” said Senator Lesko, Chair of the Finance Committee. “Arizona was one of the few states in the nation to have this tax on the books, and I knew we needed to eliminate it.”

Senator Lesko was joined by business leaders from across Arizona in the bill signing ceremony with Governor Ducey on August 9.


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