Alabama has achieved another milestone this year, ranking in the top 10 by Corporate Site Selector. The state has been recognized as a top contender in the 2025 “Top State for Business” awards, along with impressive finishes in an area development program.
This annual ranking is compiled from a national panel of location consultants and is one of the most scrutinized scorecards in the field of economic development.
Once again, Georgia has claimed the first spot overall, marking its 12th consecutive year at the top, which certainly underscores the competitive nature of the Southern region in attracting capital investments.
Alabama’s consistent presence in the top 10 can be attributed to its efficient methodology, workforce quality, and robust energy infrastructure — all significant investments from the Yellowhammer State.
Gov. Kay Ivey shared her thoughts on this achievement. She stated, “Alabama’s high rankings in this respected national survey confirm what we already know. Our state is open for business and built for success.” She added, “By keeping taxes low, cutting red tape, and investing in people and infrastructure, we have created a conducive environment where businesses can thrive and communities can expand.”
Looking at Alabama’s specific rankings for 2025: No. 1 in property tax, No. 3 in business cost, and No. 4 in business incentives, among other categories. When companies weigh their options between similar labor, logistics, and real estate, incentives frequently act as deciding factors.
Alabama’s rise into the top five states for business incentive programs indicates that the state’s offerings are competitive and can adapt to fulfill market needs.
The report for 2025 analyzes energy in terms of “availability” and “cost,” reflecting what manufacturers and data centers prioritize in different regions. Alabama’s historical advantages of low, stable taxes combined with efficient workforce training (via AIDT) are in line with what businesses are now looking for.
Many of Alabama’s legislative efforts have contributed to this success. In 2023, the state revised its employment laws, increased incentive limits, and enhanced transparency while launching a site readiness program.
In 2024, further work was done in Alabama, restructuring the workforce under the new Department of Labor and implementing tools like childcare and housing credits to attract more residents into the job market.
Earlier this year, an energy infrastructure bank was established to minimize lead times for essential equipment, ensuring that large industrial projects stay on track.
These legislative actions are believed to be key reasons behind Alabama’s advancements in incentives and its sustained position in the top 10 overall.
Recent evaluations align with other national assessments. For instance, Alabama climbed to 19th on CNBC’s Business 2025 list and saw an improvement in workforce rankings by eight spots — a category where AIDT’s targeted skills upgrades particularly made a difference for manufacturers.
Additionally, another top 10 recognition was awarded to Alabama, which spanned several industry-specific areas, including No. 3 in customized workforce training, enhancing the reliability of its talent pipeline for site selectors.
For project consultants, consistency matters. Alabama’s strong finishes in the top 10 and its top 5 incentive rankings in 2025 should bolster the state’s profile in major projects where speed, cost, and talent are critical factors.
