AZTC CEO Update: Arizona Technology Council 2026 State Legislative Session Update
The 2026 Arizona legislative session is underway against a backdrop of heightened fiscal pressure, workforce demand and renewed debate over the state’s long-term competitiveness. Governor Katie Hobbs’ State of the State address underscored affordability, workforce readiness, water security and economic growth as defining session themes, many of which intersect with the priorities of Arizona’s technology and innovation economy.
From the outset of session, the Arizona Technology Council (AZTC) has been actively engaged at the Capitol, working closely with legislative leaders, state agencies and our contract lobbying team to advance policies that strengthen Arizona’s technology ecosystem while pushing back on proposals that could undermine investment, innovation and growth.
Advancing Workforce and STEM Education: AZTC Priority Legislation
AZTC entered the 2026 session with a clear, proactive priority: strengthen Arizona’s technology workforce pipeline.
Our top legislative priority this session is HB2764, legislation to establish a State Seal of Computer Science Proficiency for Arizona high school graduates. This bill directs the Superintendent of Public Instruction and the State Board of Education to create a voluntary, statewide recognition for students who demonstrate advanced proficiency in computer science.
For Arizona’s technology employers, this initiative represents a meaningful step toward expanding access to computer science education and increasing the number of schools offering rigorous CS pathways. It also demonstrates to colleges and employers that graduates possess job-relevant, future-ready skills. AZTC is actively leading on this legislation as part of our broader workforce and STEM strategy, reinforcing Arizona’s position as a state that prepares students not just for graduation but for high-growth careers.
Defending Data Center Incentives and Arizona’s Competitiveness
A major focus of the early session has been a slate of bills seeking to repeal or significantly weaken Arizona’s data center tax incentive framework. Multiple proposals would eliminate the transaction privilege tax and use tax exemptions for data center equipment while another measure would sunset existing incentive programs. Each bill would require a two-thirds vote by the Legislature to advance.
AZTC is actively engaged in defending Arizona’s existing data center incentives, emphasizing to lawmakers that these policies are foundational to the state’s success in attracting large-scale technology infrastructure investments. Data centers underpin Arizona’s innovation economy. They are essential to cloud computing, artificial intelligence, cybersecurity, advanced manufacturing and national defense. In addition, they anchor broader economic ecosystems that deliver high-wage jobs, construction activity and long-term tax base growth.
Our advocacy has focused on ensuring policymakers understand the competitive implications of repealing incentives midstream, particularly as other states aggressively court these same investments.
Opposing Anti-Renewable Energy Policies
AZTC is also monitoring and opposing a series of bills that would create new barriers to renewable energy development, including heightened local approval thresholds for wind and solar projects, increased taxation of renewable energy equipment and new regulatory burdens.
These proposals risk undermining Arizona’s clean-energy leadership, increasing energy costs for businesses and residents, and slowing the development of the reliable, diversified power mix required to support future growth. AZTC continues to advocate a balanced, technology-neutral energy policy that supports grid reliability, sustainability and economic growth.
Supporting Advanced Air Mobility (AAM) and Emerging Aviation Technologies
Arizona remains a national leader in advanced aviation, autonomous systems and electric aircraft policy innovations. AZTC is engaged in current legislation that would modernize state law to accommodate emerging technologies such as unmanned aircraft systems and roadable aircraft.
These measures aim to provide regulatory clarity, reduce patchwork local regulation and position Arizona as a testbed for next-generation aviation technologies, supporting innovation, manufacturing and commercialization opportunities for Arizona-based companies.
AZTC’s Role at the Capitol
Throughout the session, AZTC is serving as a consistent, credible voice for Arizona’s technology community, meeting with legislators, coordinating with state agencies, aligning with business coalitions and providing real-world industry perspective on complex policy proposals. Our approach remains pragmatic and bipartisan. We are focused on outcomes that support innovation, workforce readiness, infrastructure investment and long-term economic resilience.
As the session progresses, we will continue to keep members informed and appreciate their continued engagement as we work to advance policies that keep Arizona competitive. AZTC’s advocacy is strongest when it reflects the collective experience and priorities of Arizona’s technology leaders.