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Sales and Use Tax Credit
InvestArk is a sales and use tax credit available
to businesses established in Arkansas for two years or longer that
invest $5 million or more in plant or equipment for new
construction, expansion, or modernization. The business must
be approved for the program 30 days prior to beginning construction.
A credit against the business's state sales and use
tax liability is authorized equal to 1/2 percent above the state
sales and use tax rate in effect at the time a financial incentive
agreement is signed. The sales and use tax credit is a
percentage of eligible project cost. All projects will be
audited upon completion to confirm the tax credits.
The credit can be applied against the business's
state sales and use tax liability. If the entire credit cannot
be used in the year earned, the remainder may be carried forward fro
five years. Total project expenditures must be incurred within
four years of the project plan approval.
Businesses eligible for this incentive include:
- 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.
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