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The state of Arkansas operates the way businesses
do, proactively anticipating opportunities and quickly responding to
challenges in innovative ways. This approach, combined with
incentive programs, makes Arkansas a profitable choice for locating
or expanding a business.
Arkansas' performance-based incentives are
nationally competitive and easy to use. The Arkansas
Department of Economic Development (ADED) will focus on your
business's specific needs, conduct a cost-benefit analysis, and
design a tailored incentive package.
Arkansas' incentives are based on payroll instead
of number of jobs and are determined according to location.
Counties are divided into four tiers, based on poverty rate,
unemployment, per capita income, and population growth; incentives
are more lucrative in less-developed counties. Tiers are
assigned annually on July 1, based on the previous years'
statistics. Jefferson county is a tier three.
Tax incentives may be combined to allow for more
flexibility.
Tax
Credits and Incentives
Super Projects
Arkansas will issue general obligation bonds for
projects that can create 500 jobs and $500 million in investment.
Bonds are limited to 5 percent of net state general revenues during
the most recent year--currently approximately $180 million in bonds.
The governor and legislature will decide to issue
bonds, based on an economic impact analysis provided by ADED and the
Arkansas Development Finance Authority.
The Bioplex site is currently undergoing
certification to be considered a super site location.
Advantage Arkansas
Income Tax Credit
Advantage Arkansas provides a credit on state
income tax equal to between once percent and four percent of new
payroll for five years, depending on the tier of the county in which
the business locates.
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.
Click here for more information
and qualifications for Advantage Arkansas Incentives
InvestArk
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.
Click here for more
information and qualifications for InvestArk Incentives
Customized Training Incentives
The Business and Industry Training Program of
the Arkansas Department of Economic Development (ADED) provides
pre-employment training for Arkansas workers to meet the skills
needed in the state's new and expanding businesses.
The Existing Workforce Training Program
provides financial assistance to Arkansas' businesses and eligible
consortia of businesses for upgrading the skills of the existing
workforce.
Arkansas provides a 30 percent Tuition
Reimbursement Tax Credit to eligible companies for
reimbursements they make to employees for approved educational
expenses.
Click here for
more information on Training Incentives and Tuition Reimbursement
Discretionary Incentives
Create Rebate Program
Under terms
negotiated by the Arkansas Department of Economic Development, this
program provides businesses a financial rebate from 3.9 to 5 percent
of the annual payroll of the new, full-time, permanent employees
depending on the tier rating of the county.
ArkPlus
The basic
incentive provided by the ArkPlus program is a state income tax
credit that provides tax credits of 10 percent of the total amount
of the new investment.
Research and Development Tax Credits
The state of
Arkansas will grant a tax credit for taxpayers who pay for research
performed in Arkansas universities, as well as for those companies
performing in-house research.
Click here for details and
qualifications for Discretionary Incentives |
