Arizona’s economy has long been defined by a strong entrepreneurial spirit and a blend of traditional industries with new innovation. From family-owned farms and small Main Street shops to global manufacturers and tech firms, the state thrives on a diverse business base. Arizona’s business culture is pro-growth and competitive, with policies often shaped around keeping taxes low and encouraging investment. These also come with the need to balance demands of fast-growing communities with the realities of limited water and infrastructure.
Arizona’s 2025 legislative session brought a mix of wins and some worries for the state’s taxpayers and small business owners. This year the predominately Republican lawmakers delivered relief for small businesses by introducing popular reductions in property taxes. They also passed a bill to demand more transparency when cities hike local taxes. One of many common-sense measures included a bill to help workers stay safe in Arizona’s brutal summer heat and another makes strides toward conserving our water for future growth. At the same time, big-ticket spending on stadium renovations and experiments with cryptocurrency reserves raised questions about priorities.
Taken together, these choices set the stage for stronger small businesses. They open new opportunities for Arizona families and businesses. They also point toward a healthier economy in the years ahead. Most of the new laws take effect on September 13, 2025. Here’s a look at some of the key bills.
🔑 New Economic & Business Laws, 2025
1. SB 1069 – Raising the Personal Property Tax Exemption for Businesses
Overview: SB 1069 increases the state’s business personal property tax exemption to $500,000. This change offers meaningful relief to small “Main Street” businesses by reducing tax burdens that have disproportionately affected them.
Significance: By reducing property tax exposure, small businesses gain breathing room to reinvest in operations, hire staff, and expand—fostering stronger local economies. This move is widely seen as a win for the small business community.
2. SB 1182 – Enhancing Worker Safety by Cutting Summer Red Tape
Overview: SB 1182 enables small businesses operating primarily outdoors, like construction or delivery services, to work during cooler parts of the day in summer. The law lifts restrictions on when work can occur, enhancing safety for workers exposed to Arizona’s intense heat. It passed the Legislature unanimously and was signed by the Governor.
Significance: By easing operational constraints, this law reduces heat-related hazards and downtime, supporting worker health and productivity while reducing potential business liabilities.
3. HB 2119 – Expanding Transparency in Municipal Tax Notifications
Overview: HB 2119 mandates that cities proactively inform businesses before any changes to local taxes take effect. The legislation requires clear communication of potential tax shifts to businesses. It passed the Legislature with bipartisan support and was signed into law.
Significance: This transparency measure allows businesses to plan financially and reduces surprises, supporting smoother local economies and strengthening trust between businesses and municipalities.
4. SB 1611 – “Ag-to-Urban” Groundwater Conservation Program
Overview: Current Arizona law already supports farmers who stay in agriculture by offering irrigation efficiency grants to upgrade from flood irrigation to drip or sprinkler systems. SB 1611 adds another option for those ready to transition out. This voluntary “Ag-to-Urban” program allows farmers to sell irrigated farmland for housing development, reducing overall water use while creating room for growth. The program is projected to conserve nearly 10 million acre-feet of groundwater over its lifetime. Approved by a bipartisan super-majority and signed by the Governor, it is being called one of the most consequential water measures in decades.
Significance: For farmers, the law provides flexibility—either keep farming with efficiency incentives or capture strong value by selling land. For Arizona families, it promises both water conservation and more affordable housing in fast-growing areas. For developers, it provides a clear, regulated pathway to build responsibly. Together, the program aims to balance property rights, growth, and conservation in a way that benefits the entire state.
5. Chase Field Renovation Bill – Maintaining a Major Economic Anchor
Overview: This bipartisan bill allocates up to $500 million in sales tax revenue over 30 years for renovations to Chase Field, including air conditioning and retractable roof upgrades. As home to the Arizona Diamondbacks, the team will provide a 50% match with up to $250 million in funding. The law also protects public interests by barring funds for luxury suites and limiting city financial exposure.
Significance: This investment preserves a key metropolitan asset, protects jobs, stimulates surrounding businesses (restaurants, hotels, retail). It also helps to retain a major league team that attracts fans and investment to downtown Phoenix.
6. Bitcoin & Digital Assets Reserve Fund
Overview: This is landmark legislation creating a Bitcoin and Digital Assets Reserve Fund. The law updates unclaimed property rules to include virtual currencies, ensuring that Arizonans’ abandoned crypto assets don’t lose value when held by the state. Arizona becomes the second U.S. state, after New Hampshire, to create such a fund. Hobbs had previously vetoed more aggressive crypto investment proposals.
Significance: This modernizes Arizona’s financial infrastructure, protects holders of digital assets, and positions the state as forward-thinking with respect to emerging financial technologies.
💡 From Policy to Everyday Impact
These new laws represent a wide range of approaches, some aimed at immediate relief, others at long-term growth. Small businesses gain breathing room from reduced tax burdens and clearer rules. Larger employers benefit from stability in water use, infrastructure, and workforce safety.
Together, those advantages ripple outward to Arizona’s workers and families. When small businesses thrive, they create local jobs and keep dollars circulating in the community. When larger companies grow, they expand facilities, launch new projects, and strengthen Arizona’s economic base. Both ends of the business community – Main Street shops and major employers – play a role in building opportunity. And when they are healthy, Arizona families see the benefits in steady paychecks, better services, and stronger communities. That means more stability at the kitchen table, more options for consumers, and more confidence that Arizona will remain a place where families can prosper.
The bigger spending measures, like stadium renovations and digital asset reserves, will continue to spark debate. But even these choices reflect a Legislature willing to shape Arizona’s long-term economic direction. As these laws take effect this fall, the real test will be in how they strengthen opportunity not only for businesses, but for the people who depend on them every day.