Alabama notched another win with corporate site selectors this year, landing in the Top 10 of Area Development’s 2025 “Top States for Business” and earning a top-five finish for incentive programs.

The annual ranking, compiled from a national panel of location consultants, is one of the most watched scorecards in economic development.

Georgia captured the overall No. 1 spot for a record 12th consecutive year, underscoring the intense Southern arms race for capital investment.

Alabama’s continued Top 10 placement comes as the methodology increasingly privileges speed, workforce alignment and energy infrastructure: factors where the Yellowhammer State has invested heavily.

Such is the formula for Alabama, Governor Kay Ivey said on Wednesday.

“Alabama’s high ranking in this respected national survey confirms what we already know: Our state is open for business and built for success,” Governor Ivey said.

“By keeping taxes low, cutting red tape and investing in our people and infrastructure, we’ve created an environment where companies can thrive and communities can grow.”

Alabama’s 2025 placements: No. 1 Property Tax; No. 3 Cost of Doing Business; No. 3 Regulatory Framework; No. 4 Business Incentives; No. 6 Cooperative Local & State Government; No. 6 Site Readiness Programs; No. 7 Workforce Training Programs; No. 7 Availability of Sites; No. 9 Energy Cost.

Incentives are often the tiebreaker when companies are choosing between finalist states with comparable labor, logistics and real estate.

Alabama’s appearance among the top five states for Business Incentive Programs signals to project consultants that the state’s tool kit remains competitive and responsive to deal demands.

The 2025 report also split energy into “availability” and “cost,” reflecting what manufacturers and data-center operators are prioritizing amid grid strains nationwide. Alabama’s historic strengths around low, stable taxes and fast, customized workforce training (AIDT) continue to align with those evolving priorities.

Credit Alabama’s recent playbook.

In 2023, The Game Plan renewed and beefed up the Alabama Jobs Act, raising incentive caps and adding transparency, and stood up the Site SEEDS, a site-readiness program that’s already moving real dollars into dirt across the state.

In 2024, Working for Alabama reorganized workforce under a new Department of Workforce and added tools like childcare and housing credits to pull more Alabamians into the labor force.

Earlier this year, the Powering Growth package of created an Energy Infrastructure Bank to cut long lead times on critical equipment and keep big industrial projects on schedule.

All told, these legislative efforts are exactly why Alabama climbed in incentives and held firm in the Top 10 overall.

The latest recognition also tracks with other national scorecards.

Alabama moved up to No. 19 overall in CNBC’s Top States for Doing Business 2025 list, with an eight-spot jump in workforce—a category where AIDT and targeted upskilling have been difference-makers.

Also in 2025, Business Facilities awarded Alabama another Top 10 placements across multiple industry-specific categories, including No. 3 in Customized Workforce Training, reinforcing its talent-pipeline credibility with site selectors.

For project consultants, consistency counts. Alabama’s Top 10 finish overall in 2025 and top-five ranking for incentives strengthen the state’s pitch on megaprojects where speed, cost and talent determine the winner.