Allison Carter

allison.carter@indystar.com

Chief Executive magazine has named Indiana the fifth best state in the nation for business. That's an improvement of one place over last year's ranking and sets Indiana as the best in the Midwest.

The magazine asked 513 CEOs to rank the states they were familiar with on tax and regulatory regime, workforce quality and living environment. Living environment takes into account cost of living, education and local attitudes toward business. Here's how Indiana fared in those categories, according to the magazine:

No. 10 for taxation and regulation

No. 4 in workforce quality

No. 17 in living environment

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CEO comments from the survey say that “Indiana … has its act together and is impressive" and that “Indiana … [has] consistently ranked in the top 3 in offering not just competitive incentives for business, but also packages that improve the skill sets to hire a qualified, work-ready workforce.”

In terms of challenges that face the state, the survey cited slow population and income growth.

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Texas and Florida topped the list, as they have for the last 12 years. North Carolina and Tennessee round out the top five.

At the bottom of the pile, the least business friendly states according to the survey were Connecticut, New Jersey, Illinois and New York. California was dead last.

See the full list here.

Allison Carter is an engagement producer at IndyStar. Follow her on Twitter @AllisonLCarter.