Not long ago, the idea of cars driving themselves seemed like something out of a sci-fi movie. But Arizona leaned in. Today we’re a national leader in autonomous vehicle innovation, with self-driving cars navigating city streets and even making curbside airport drop-offs.

Now, thanks to a major legislative win this session, Arizona is setting its sights higher, laying the groundwork for a new era of electric-powered air travel.

With the passage of SB 1307, Arizona is officially getting serious about advanced air mobility, the use of electric aircraft to carry passengers and cargo across urban and regional areas. Think flying taxis, battery-powered passenger planes, and next-gen air vehicles designed to shuttle people and packages above city streets—quietly, cleanly, and without a runway.

In a fast-growing state like Arizona, where infrastructure must keep pace with expansion, the need for alternative transportation solutions is no longer just a long-term vision, but a near-term necessity.

SB 1307 directs the state to develop a comprehensive plan for integrating electric aircraft charging stations and vertiports—designated takeoff and landing areas—into Arizona’s broader aviation infrastructure. It also designates a statewide expert within the Arizona Department of Transportation to serve as a resource for local governments and industry partners. And it provides tools to help communities prepare for, attract, and safely integrate this transformative technology.

Much like Arizona did with autonomous vehicles a decade ago, we’re sending a clear message: innovation is welcome here. This legislation signals to manufacturers, infrastructure developers, and air mobility companies that Arizona isn’t just ready to test this technology—we’re ready to build around it.

That readiness translates to jobs, investment, and a competitive advantage in a sector projected to reach tens of billions of dollars in value globally. States that lead early will reap the biggest rewards.

Why does this matter? Advanced air mobility has the potential to fundamentally reshape how goods and people move, reducing congestion, increasing regional connectivity, and unlocking new opportunities for rural and underserved communities. By acting now, we ensure Arizona isn’t left reacting to change later, it’s helping lead it.

The Arizona Â鶹´«Ă˝Ół»­ of Commerce & Industry and Arizona Manufacturers Council were proud to champion SB 1307 because we understand what’s at stake. With our strong aerospace and manufacturing base, pro-innovation policies, and collaborative public-private ecosystem, Arizona is uniquely equipped to be the hub for next-generation air mobility. This bill lays the foundation to make that vision a reality.

Arizona’s leadership in aerospace and defense didn’t happen by accident. We’re now ranked among the top three states in the nation for aerospace manufacturing strength, thanks to a deep talent pool, supportive policies, and global powerhouses like Boeing, Raytheon, Honeywell, and Northrop Grumman continuing to invest here. SB 1307 builds on that momentum—reinforcing our competitive edge and helping communities prepare for the future of flight.

Arizona’s economy thrives when we lean into what’s next. By continuing to embrace forward-looking policies like SB 1307, we’re making it clear: Arizona isn’t just along for the ride—we’re in the pilot’s seat.

Grace Appelbe is the executive director of the Arizona Manufacturers Council.

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Advocates for the nation’s manufacturing sector gathered in San Diego this week for the Conference of State Manufacturers Associations’ annual leadership conference, where the sector’s competitiveness amid rising inflation, labor challenges, and hostile policies from Washington, D.C. was front and center. 

Arizona Â鶹´«Ă˝Ół»­ of Commerce & Industry President and CEO Danny Seiden spoke on a panel about the state and federal policy issues facing manufacturers. The Â鶹´«Ă˝Ół»­ is the state affiliate of the National Association of Manufacturers and oversees the Arizona Manufacturers Council. 

Seiden reflected on how Arizona has advanced policies like accelerated depreciation on business personal property or the reduction in the commercial property tax assessment ratio that have made the state more attractive to manufacturers. 

A state’s tax environment is an important factor in its ability to attract jobs. 

“If you create good tax policy, you will see growth,” Tennessee Â鶹´«Ă˝Ół»­ of Commerce & Industry President and CEO Bradley Jackson said. 

The connection to favorable tax policy and economic growth has been borne out at the federal level, too, according to Chris Netram, managing vice president of tax and domestic economic policy at the NAM. 

“Immediately following the passage of the Tax Cuts and Jobs Act that passed in December 2017, 2018 was the very best year for manufacturing job creation in decades,” he said. 

Among its many provisions, the TCJA lowered the U.S. corporate income tax rate from 35% to 21% and repealed the corporate alternative minimum tax. 

Netram said NAM, which supported the TCJA’s passage, has focused on making data-driven arguments to advance good policy, sharing with the White House in the early days of the Biden administration an analysis of the implications of the economic plan the president touted on the campaign trail. 

Seiden credited Ariz. Sen. Kyrsten Sinema for her willingness to work with the business community and keep an open mind to federal policies that would positively affect Â鶹´«Ă˝Ół»­anufacturers. He cited her opposition to the Build Back Better legislation, a sweeping domestic spending bill, as an example of her interest in protecting Arizona job creators. 

“She is unwavering,” Seiden said. “She does not want to see us become less competitive.”

Against the backdrop of the debate on Capitol Hill over the Chips-plus Act, a bill to boost domestic supply chain production, which Sinema and her colleague Sen. Mark Kelly, D, support, Seiden discussed the importance of ensuring continued access to semiconductors amid supply chain disruptions and uncertain global politics. Semiconductors are found in everything from consumer electronics to automobiles and kitchen appliances. 

TSMC’s multi-billion-dollar investment in Arizona is essential to that strategy, he said. 

“It’s not just cars – it’s national defense,” Seiden said. “If we don’t have access to these chips then Raytheon’s 13,000 jobs in Arizona, which are focused on building missiles – they can’t build the right kind of missiles without those semiconductors. This is a huge deal.” 

In addition to state and federal policy, conference panels examined workforce challenges, the state of the domestic and international supply chain, and energy issues. 

The event concludes today.

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