Source: http://www.arkansasedc.com/incentives
Timestamp: 2018-02-18 10:44:51
Document Index: 88098123

Matched Legal Cases: ['§19', '§19', '§ 26', '§ 26', '§26', '§ 26']

Arkansas EDC | Incentives
When it comes to incentives in Arkansas, the numbers speak for themselves: Create Rebate can provide up to 5% payroll rebate; Targeted ArkPlus credits 2% on investments from $250,000 up to $500,000 and research that partners with an Arkansas university receives a 33% income tax credit. Filming in the Natural State? There's a rebate for that, too. The Arkansas Economic Development Commission is ready to help you find the incentive that best meets your needs.
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Up to 5% Payroll Rebate
The Create Rebate Program is offered at the discretion of the Director of the Arkansas Economic Development Commission in highly competitive situations. It provides annual cash payments based on a company’s annual payroll for new, full-time, permanent employees. Explore Job Creation Incentives, below, for more information.
The Tax Back program provides sales and use tax refunds on the purchase of building materials and taxable machinery and equipment to qualified businesses investing at least $100,000 and who either a) sign a job creation agreement under the Advantage Arkansas or Create Rebate programs within 24 months of signing the Tax Back agreement or b) have met the requirements of an Advantage Arkansas or Create Rebate agreement within the previous 48 months.
The refund of sales and use taxes shall not include the refund of taxes dedicated to the Educational Adequacy Fund provided in §19-5-1227 or the taxes dedicated to the Conservation Tax Fund provided in §19-6-484; which totals 1%. The state tax rate is 6.5% so the eligible refund would be 5.5%.
Intermodal facilities with more than one (1) mode of interconnected movement of freight, commerce, or passengers
Office sector businesses that support primary business needs and that are non-retail businesses deriving at least seventy-five percent (75%) of their sales revenue from out-of-state
Arkansas's job-creation incentives are based on payroll and use a tier system based on poverty rate, unemployment rate, per capita personal income and population growth to determine qualification criteria and benefits. Tiers are assigned annually based on current data. See Arkansas Incentives Tier Map.
Advantage Arkansas offers a state income tax credit for job creation based on the payroll of new, full-time, permanent employees hired as a result of the project. The table above shows the job creation requirements and the available benefit under the program.
In order to qualify for the Advantage Arkansas program (all tiers), the proposed average hourly wage of the new employees hired as a result of the project must be equal to or greater than the lowest county average hourly wage. Currently, the average hourly wage threshold for the Advantage Arkansas program is $10.99.
The Advantage Arkansas income tax credit is earned each tax year for a period of five years. The income tax credit cannot offset more than 50 percent of a business’ income tax liability in any one year and may be carried forward for nine years beyond the tax year in which the credit was first earned. The credit begins in the tax year in which the new employees are hired. Employees included in the new additional payroll under the project must be Arkansas taxpayers.
ArkPlus requires both a minimum investment and a minimum payroll of new, full-time, permanent employees hired as a result of the project, depending on the tier in which the business locates. Total project expenditures must be incurred within four (4) years of the date the project is approved by AEDC. New, full-time, permanent employees must be hired within 48 months of the date the financial agreement is signed.
Incentives are negotiated and offered at the discretion of the Executive Director of the Arkansas Economic Development Commission.
The income tax credit earned may be used to offset 50% of the investor’s Arkansas income tax liability in any one tax year. Any unused credit may be carried forward for a period of nine years. The income tax credit earned may be sold upon approval by AEDC.
Machinery and equipment used directly in manufacturing that are purchased for a new manufacturing facility or to
replace existing machinery and equipment are exempt. Machinery and equipment required by Arkansas law to be purchased
for air or water pollution control or for removal of sulfur pollutants from refined petroleum are also exempt.
A business may choose between two state income tax credit options: 1) a credit of 3.9% of the total annual payroll of the employees working in the childcare facility, or 2) a one-time $5,000 state income tax credit for the first year that the business provides its employees with a childcare facility. Any unused credit may be carried forward two years.
the cost of replacing existing waste reduction, reuse or recycling equipment shall be eligible for certification
only if the replacement provides greater capacity for recycling or provides the capability to collect, separate,
process, modify, convert, treat, or manufacture additional or a different type of solid waste.
Taxpayers receiving credit under this Act for the purchase of machinery and equipment shall not be entitled to any
other state or local tax credit or deduction based on the purchase of the machinery or equipment, except normal
The first option, which provides for a refund of one percentage point (1%) of the 5.875% sales and use taxes levied under §§ 26-52-301, 26-52-302, 26-53-106 and 26-53-107, may be claimed by a taxpayer for the purchase and installation of certain machinery and equipment used directly in manufacturing and processing. To qualify for this refund, a taxpayer must hold a direct pay sales and use tax permit from the Arkansas Department of Finance and Administration (DFA).
The second option, which provides for an increased refund of all sales and use taxes (5.875%) levied under §§ 26-52-301, 26-52-302, 26-53-106 and 26-53-107, is a discretionary incentive that may be offered by the Director of the Arkansas Economic Development Commission (AEDC) to a taxpayer who undertakes a major maintenance and improvement project to purchase and install certain machinery and equipment used directly in manufacturing and processing. To qualify for this discretionary refund, a taxpayer must:
Enter into a financial incentive agreement with the AEDC for the major maintenance and improvement
Expend at least $3 million on an approved major maintenance and improvement project that includes the
purchase of tangible personal property and services that are either exempt or subject to partial refund of tax
under §§26-52-402, 26-52-447, 26-53-114, or 26-53-149;
File a completed Manufacturing Replacement and Repair Sales and Use Tax Refund Application with the
AEDC;
Receive approval from the Director of the AEDC to receive the increased refund of sales and use taxes for
the major maintenance and improvement project.
(A.C.A. § 26-51-2201 et seq.) as amended by Act 567 of 2015
The Arkansas Historic Rehabilitation Income Tax Credit Program, administered by the Arkansas Historic Preservation Program, an agency of the Department of Arkansas Heritage, offers a 25% state income tax credit for certified rehabilitation of eligible income and non-income producing properties. The program has an annual aggregate cap of $4 million in credits; per project caps of $125,000 in credits for income producing properties and $25,000 in credits for non-income producing properties.
Credits are transferrable and may be carried forward for up to five years.
For additional information and application information, including program rules, please reference http://www.arkansaspreservation.com/Preservation-Services/rehabilitation-tax-credits.
For more information on this particular incentive, please contact Christopher Crane, Arkansas Film Commissioner, at (501) 682-7676 or .
*The following Arkansas counties are designated as “high unemployment” counties based upon the 2013 statewide annual labor force statistics compiled by the Arkansas Department of Workforce Services: Ashley, Chicot, Clay, Crittenden, Desha, Drew, Lee, Mississippi, Phillips, St. Francis, and Stone.
The income tax credits earned under this program may be sold upon approval by AEDC.
Additional eligibility criteria may be required for individual targeted programs (sales and use tax refund for targeted businesses, payroll income tax credit for targeted businesses, payroll rebate for targeted business and targeted ArkPlus)
A unique feature of this incentive is the ability of the business that earns the targeted business income tax credit to sell the credits. The business must make application to AEDC for the sale of credits. Upon approval by AEDC, the business may sell earned income tax credits.
The credit amount shall be two percent (2%) of the investment up to five hundred thousand dollars ($500,000) plus four percent (4%) of the investment in excess of five hundred thousand dollars ($500,000) up to one million dollars ($1,000,000) plus six percent (6%) of the investment in excess of one million dollars ($1,000,000) up to two million dollars ($2,000,000); and,
The credit amount shall be two percent (2%) of the investment up to five hundred thousand dollars ($500,000) plus four percent (4%) of the investment in excess of five hundred thousand dollars ($500,000) up to one million dollars ($1,000,000) plus six percent (6%) of the investment in excess of one million
dollars ($1,000,000) up to two million dollars ($2,000,000) plus eight percent (8%) of the investment in excess of two million dollars ($2,000,000).