Entrepreneurs looking for a business-friendly environment might consider relocating to the Rust Belt, as Ohio has been ranked the most business-friendly state in the country by CNBC in its 20th annual America's Top States for Business rankings.

Ohio’s rise to the top spot reflects a sustained effort since 2012 by lawmakers in the Buckeye State to attract new businesses through regulatory easing. Key measures include a bill that established a 150-day deadline for the Ohio Power Siting Board to review complete applications, a reduction in the property tax rate on new energy generation and conversion equipment from 25 percent to 7 percent, and a lowered tax rate on new transmission, distribution, and pipeline infrastructure to 25 percent, down from the 85 to 88 percent charged on existing assets.

CNBC’s rankings evaluate states based on seven categories important to businesses: infrastructure, economy, workforce, cost of doing business, tech and innovation, quality of life, and business friendliness. This year, infrastructure was weighted most heavily, incorporating factors such as grid reliability, energy capacity, and ease of permitting.

North Carolina, Virginia, Texas, and Minnesota rounded out the top five states. Notably, North Carolina, also known as the Tar Heel State, finished second in 2026 after securing first place in 2025 for the third time in four years.

Minnesota made significant strides in 2024 by simplifying its environmental review process, a move expected to reduce permitting times for energy projects by nine months to a year and cut project approval timelines by at least 50 percent, according to Utility Dive.

These rankings underscore the effectiveness of permitting reform in boosting business sectors, though states continue to grapple with balancing tax incentives for favored industries.

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