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Income Tax Credit
Advantage Arkansas provides a credit on state
income tax equal to between one percent and four percent of new
payroll for five years, depending on the tier of the county in which
the business locates.
To qualify for Advantage Arkansas, the business's
operations must fit one of the following descriptions continuously
and throughout the project term:
- Manufacturers in
NAICS codes 31-33 and businesses primarily engaged in
commercial physical or biological research; or
- Eligible computer-related businesses with no
retail public sales that derive at least 75 percent of their
revenue from out-of-state sales; or
- Businesses primarily engaged in motion
picture production with no retail public sales that derive at
least 75 percent of their revenue from out-of-state sales; or
- Distribution centers, including e-commerce
distributors, that derive at least 75 percent of their resources
from out-of-state sales; office sector businesses; corporate or
regional headquarters; or trucking/distribution terminals with
no retail public sales; or
- Scientific and technical services businesses
that derive at least 75 percent of their revenue from
out-of-state sales.
For the business to qualify for the income tax
credit, employees must be Arkansas taxpayers. The credit
begins in the year in which the new employees are hired. Any
unused portion of the credit may be applied against income tax for
the succeeding nine years.
Tax Back - Sales & Use Tax Refund
Advantage Arkansas participants are also eligible
for a refund of sales and use taxes for building materials and
taxable equipment connected with the eligible project.
Applicants for Tax Back must obtain an endorsement
resolution from the local governing authority, must meet the same
qualification criteria as Advantage Arkansas (above), and must be
approved by the Arkansas Department of Economic Development.
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