PHOENIX - Arizonar -- The Arizona Technology Council today issued a statement following Gov. Katie Hobbs' veto of the proposed FY 2027 state budget, urging policymakers to preserve Arizona's proven economic development tools as budget negotiations continue.

Arizona's economic growth over the past decade has been driven by bipartisan collaboration and strategic investments that have helped diversify the state's economy and attract high-quality, high-wage jobs across industries, including semiconductors, aerospace, advanced manufacturing, clean energy and software.

"The progress has been deliberate and collaborative," said Steven G. Zylstra, president and CEO of the Council and SciTech Institute. "Bipartisan leadership — spanning Governor Hobbs, Governor Ducey and the Legislature — has established a suite of economic development tools that have diversified our economy and strengthened our ability to attract companies offering high-quality, high-wage jobs."

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The Council also emphasized the importance of ensuring the Arizona Commerce Authority retains the flexibility and resources necessary to compete for major business investments and expansion opportunities. Programs such as the Arizona Competes Fund remain critical to attracting projects that drive long-term economic growth, job creation and innovation across the state.

"As budget negotiations resume, we urge policymakers to remain focused on preserving these proven tools," Zylstra continued. "In particular, repealing the Refundable R&D Tax Credit would undermine one of the most effective incentives available to early-stage and startup companies in Arizona. With an estimated 22-to-1 return on investment, the credit generates $22 in tax revenue for every dollar refunded, demonstrating clear and measurable value to the state's economy."

Arizona has emerged as a national leader in technology and innovation, fueled by significant investments in semiconductor manufacturing, aerospace and defense, electric vehicles, artificial intelligence infrastructure and advanced manufacturing. The Council warned that weakening key economic development programs could jeopardize the state's continued momentum and competitiveness.

For more information on the Council's public policy priorities and activities, visit:
https://www.aztechcouncil.org/public-policy/