Tennessee proves popular with companies leaving California
NASHVILLE, Tenn. (Will Chappell) -- Tennessee became the second most popular destination for companies moving their headquarters from California between 2018 and June of 2021, according to a report from the Hoover Institute.
The report showed that 25 companies had relocated to Tennessee from California in that period, trailing only Texas which had received 114. Previously, Arizona or Nevada had been the most popular destination for California companies behind Texas.
This rise in popularity came as more companies sought to leave the Golden State. More than twice as many companies decamped their headquarters from California during the first six months of 2021 compared to the same period in 2020.
Tennessee attracted companies with its low tax rates, cost of living, labor and operational costs, and relaxed regulatory environment. These factors combined to make Tennessee the third best state for business in the country, according to a survey by Chief Executive magazine.