AEDC Rules and Regulations 2011

Arkansas's job-creation incentives are based on payroll and use a tier system based on poverty rate, unemployment, per capita income and population growth to determine qualification criteria and benefits. Tiers are assigned annually on July 1, based on the previous year's statistics.

Consolidated Incentive Act Rules

AEDC Project managers work on new-business projects throughout the state and can assist with questions regarding the state’s incentives.

INVESTMENT INCENTIVES

Tax Back (Sales and Use Tax Refund)

Advantage Arkansas participants investing at least $100,000 are eligible for the Tax Back program. This program provides a refund of sales and use taxes for building materials and taxable machinery and equipment associated with the approved project.

The business must sign a job-creation agreement under the Advantage Arkansas program within 24 months of signing the Tax Back agreement.

Applicants for Tax Back must obtain an endorsement resolution from the local governing authority that authorizes the refund of its local taxes. Applicants must meet the same qualification criteria as Advantage Arkansas and must be approved by the Arkansas Economic Development Commission.

Eligibility

The Tax Back incentive is available for non-retail businesses engaged in commerce for profit that fall into one or more of the following categories:

• Manufacturers in NAICS codes 31-33
• Businesses primarily engaged in the design and development of prepackaged software, digital content production and preservation, computer processing, data preparation services or information retrieval services. Eligible computer-related businesses must derive at least 75 percent of their revenue from out-of-state sales
• Businesses primarily engaged in motion picture production that derive at least 75% of their revenue from out-of-state sales
• Distribution centers, including e-commerce distributors, that derive at least 75% of their revenue from out-of-state sales
• Office sector businesses that derive at least 75% of their revenue from out-of-state sales
• National or regional corporate headquarters as classified in the NAICS code 551114
• Firms primarily engaged in commercial, physical and biological research as classified in the NAICS code 541710
• Scientific and technical services businesses. The firms must derive at least 75% of their revenue from out-of-state sales. The average hourly wage paid by these businesses must exceed 150% of the county or state average hourly wage, whichever is less.

If you have any questions concerning the Tax Back Program, please call 1-800-ARKANSAS.

InvestArk (Sales and Use Tax Credit)

The requirements for InvestArk are the same for all tiers. The InvestArk sales and use tax credit is available to businesses established in Arkansas for two years or longer which invest $5 million or more at a single location in plant or equipment for new construction, expansion, or modernization. A credit against the business' state direct-pay sales and use tax liability, equal to one-half percent (1/2%) above the State sales and use tax rate in effect at the time of application, is earned based on the total eligible project cost. In any year, tax credits claimed under this program cannot exceed 50% of the business' sales and use tax liability on taxable purchases. All reported expenditures are subject to audit by the Department of Finance and Administration to determine eligibility, which may result in a reduction of credit or a tax liability.

The credit is earned in the year the eligible expenditure is made and can be applied against the business' state direct-pay sales and use tax liability in the year following the year of expenditure. Any unused credits may be carried forward for a period of up to five (5) years. Total project expenditures must be incurred within four (4) years of the date the project is approved by the Commission.

The business must be approved for the program prior to beginning construction or incurring eligible project costs. The business must obtain a direct-pay sales and use tax permit from the State of Arkansas. All project expenditures must be incurred within four (4) years of the project eligibility date. All projects will be audited upon completion to confirm the tax credits.

The sales and use tax credit earned under the InvestArk program is based upon a percentage of eligible project cost. The percentage of credit that may be authorized is equal to ½% above the state sales and use tax rate in effect at the time a financial incentive agreement is signed. Currently the percentage that may be earned as credit is 6.5% of eligible project expenditures.

The credit may be used to offset up to 50% of the business' sales and use tax liability on taxable purchases. The credit is earned in the year the eligible expenditure is made and can be applied against the business's state direct-pay sales and use tax liability in the year following the year of expenditure. If the entire credit cannot be used, the remainder may be carried forward for five (5) years.

An application for the InvestArk program may be obtained by contacting AEDC's Business Development Division at (501) 682-7675.

Eligibility

The InvestArk Arkansas incentive is available for non-retail businesses engaged in commerce for profit that fall into one or more of the following categories:

• Manufacturers in NAICS codes 31-33
• Businesses primarily engaged in the design and development of prepackaged software, digital content production and preservation, computer processing, data preparation services or information retrieval services. Eligible computer-related businesses must derive at least 75% of their revenue from out-of-state sales
• Businesses primarily engaged in motion picture production that derive at least 75% of their revenue from out-of-state sales
• Distribution centers, including e-commerce distributors, that derive at least 75% of their revenue from out-of-state sales
• Office sector businesses that derive at least 75% of their revenue from out-of-state sales
• National or regional corporate headquarters as classified in the NAICS code 551114
• Firms primarily engaged in commercial, physical and biological research as classified in the NAICS code 541710
• Scientific and technical services businesses. The firms must derive at least 75% of their revenue from out-of-state sales. The average hourly wage paid by these businesses must exceed 150% of the county or state average hourly wage, whichever is less.

JOB CREATION INCENTIVES

Advantage Arkansas

(Income Tax Credit)

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.

 In all tiers, in order to qualify for the Advantage Arkansas program, 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 $10.48.

The payroll threshold for qualifying for Advantage Arkansas and the benefit received depends on the tier in which the business locates or expands.

Arkansas's counties are ranked into four tiers based on poverty rate, population growth, per capita income and unemployment rate. (See Tier Map)

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 must be Arkansas taxpayers.

If you have any questions concerning the Advantage Arkansas program, please call 1-800-ARKANSAS.

Eligibility

The Advantage Arkansas incentive is available for non-retail businesses engaged in commerce for profit that fall into one or more of the following categories:

• Manufacturers in NAICS codes 31-33
• Businesses primarily engaged in the design and development of prepackaged software, digital content production and preservation, computer processing, data preparation services or information retrieval services. Eligible computer-related businesses must derive at least 75% of their revenue from out-of-state sales
• Businesses primarily engaged in motion picture production that derive at least 75% of their revenue from out-of-state sales
• Distribution centers, including e-commerce distributors, that derive at least 75% of their revenue from out-of-state sales
• Office sector businesses that derive at least 75% of their revenue from out-of-state sales
• National or regional corporate headquarters as classified in the NAICS code 551114
• Firms primarily engaged in commercial, physical and biological research as classified in the NAICS code 541710
• Scientific and technical services businesses. The firms must derive at least 75% of their revenue from out-of-state sales. The average hourly wage paid by these businesses must exceed 150% of the county or state average hourly wage, whichever is less.

DISCRETIONARY INCENTIVES

(Negotiated by the Arkansas Economic Development Commission in highly competitive situations)

Create Rebate Program

The Create Rebate program may be offered at the discretion of the director of the Arkansas Economic Development Commission in highly competitive situations.

Create Rebate provides annual cash payments based on a company's annual payroll for new, full-time, permanent employees. The benefit depends on the tier in which the company locates. (See Tier Map)

In all tiers, a minimum payroll of new, full-time, permanent employees of $2 million annually is required. The minimum payroll threshold must be met within 24 months of the effective date of the financial incentive agreement.  No benefits may be claimed until the $2 million annual payroll threshold is met.

The Create Rebate benefits are available after the business certifies to the Arkansas Department of Finance and Administration that it has fulfilled the minimum payroll requirements and the reported payroll has been verified by the Arkansas Department of Finance and Administration.

Eligibility

The Create Rebate incentive is available for non-retail businesses engaged in commerce for profit that fall into one or more of the following categories:

• Manufacturers in NAICS codes 31-33
• Businesses primarily engaged in the design and development of prepackaged software, digital content production and preservation, computer processing, data preparation services or information retrieval services. Eligible computer-related businesses must derive at least 75% of their revenue from out-of-state sales
• Businesses primarily engaged in motion picture production that derive at least 75% of their revenue from out-of-state sales
• Distribution centers, including e-commerce distributors, that derive at least 75% of their revenue from out-of-state sales
• Office sector businesses that derive at least 75% of their revenue from out-of-state sales
• National or regional corporate headquarters as classified in the NAICS code 551114
• Firms primarily engaged in commercial, physical and biological research as classified in the NAICS code 541710
• Scientific and technical services businesses. The firms must derive at least 75% of their revenue from out-of-state sales. The average hourly wage paid by these businesses must exceed 150% of the county or state average hourly wage, whichever is less.

If you have any questions concerning the Create Rebate Program, please call 1-800-ARKANSAS.

ArkPlus

The ArkPlus program may be offered at the discretion of the director of the Arkansas Economic Development Commission in highly competitive situations.

ArkPlus is a state income tax credit program that provides tax credits of 10% of the total investment in a new location or expansion project.

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. Arkansas's counties are ranked into four tiers based on poverty rate, population growth, per capita income and unemployment rate. (See Tier Map)  

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 24 months of the date the financial agreement is signed.

The income tax credits may be used to offset 50% of the Arkansas income tax liability in the tax year the credit is earned. Any unused credits may be carried forward for nine (9) years beyond the tax year in which the credit was first earned.

Eligibility

The ArkPlus incentive is available for non-retail businesses engaged in commerce for profit that fall into one or more of the following categories:

• Manufacturers in NAICS codes 31-33
• Businesses primarily engaged in the design and development of prepackaged software, digital content production and preservation, computer processing, data preparation services or information retrieval services. Eligible computer-related businesses must derive at least 75% of their revenue from out-of-state sales
• Businesses primarily engaged in motion picture production that derive at least 75% of their revenue from out-of-state sales
• Distribution centers, including e-commerce distributors, that derive at least 75% of their revenue from out-of-state sales
• Office sector businesses that derive at least 75% of their revenue from out-of-state sales
• National or regional corporate headquarters as classified in the NAICS code 551114
• Firms primarily engaged in commercial, physical and biological research as classified in the NAICS code 541710
• Scientific and technical services businesses. The firms must derive at least 75% of their revenue from out-of-state sales. The average hourly wage paid by these businesses must exceed 150% of the county or state average hourly wage, whichever is less.

If you have any questions concerning the ArkPlus Program, please call 1-800-ARKANSAS.

TARGETED BUSINESS INCENTIVES

Offered at the discretion of the director of the Arkansas Economic Development Commission. Businesses that qualify as "targeted businesses" may qualify for three special incentives designed to help new, knowledge-based businesses in their early years.

These discretionary incentives are for start-up companies in emerging sectors:

• A refund of sales and use taxes paid on the purchase of building materials and machinery and equipment associated with the approved project
• A transferable income tax credit equal to 10% of payroll for up to five years
• A transferable income tax credit equal to 33% of eligible research and development expenditures

The income tax credits earned under this program may be sold upon approval by the Economic Development Commission.

Eligibility

Companies must meet the following requirements and do business in one of the six targeted emerging technology sectors listed below:

• Be less than five-years old
• Have an annual payroll between $100,000 and $1 million
• The business must show proof of an equity investment of at least $250,000
• Pay at least 150% of the lesser of the state or county average hourly wage where the business is located
• Meet requisite payroll thresholds

Emerging technology sectors are:

Advanced materials and manufacturing systems, with emphases on the following:

1. Photonics
2. Nanotechnology
3. Electronics manufacturing
4. Environmental issues related to material and manufacturing

Agriculture, food and environmental sciences, with emphases on the following:

1. Rice
2. Poultry
3. Aquaculture
4. Toxicology
5. Agricultural medicine
6. Forestry
7. Nutrition
8. Waste minimization
9. Energy reduction
10. Distributed energy generation
11. Spatial technology

 Biotechnology, bioengineering and life sciences, with emphases on the following:

1. Genetics
2. Oncology
3. Geriatrics
4. Neuroscience
5. Medical devices
6. Rehabilitation
7. Biopharmaceuticals and drug discovery
8. Protein structure and function
9. Cell molecular biology
10. Sensor technology

Information technology, with emphases on the following:

1. Knowledge and data engineering
2. Database systems
3. Distributed systems
4. Wireless systems
5. Software development
6. State of the art applications of information technology to:

1. Bioinformatics
2. Healthcare

Transportation logistics, with emphases on the following:

1. Intelligent material handling
2. Automated systems
3. Transportation management systems

Bio-based products, with emphases on the following:

1. Biodiesel
2. Ethanol
3. Methanol
4. Synthetic crude oil
5. Adhesives
6. Polymers
7. Automotive components
8. Engineered products from non-traditional biomass sources

If a business falls within one or more of the targeted areas, additional eligibility criteria are:

• The business must have an annual payroll of not less than $100,000 or more than $1 million
• The business must show proof of an equity investment of at least $250,000
• The business must pay wages that are at least 150% of the lesser of the state or county average wage where the business is located

If a business meets all of the above criteria, the director of the Economic Development Commission may offer the business additional incentives.

Sales Tax Refund

Act 182 of 2003 § 15-4-2706(e)(1)

This incentive program provides a refund of sales and use taxes paid on the purchases of building materials and taxable machinery and equipment associated with the approved project for targeted businesses, as defined above. This incentive is not available unless the business has been offered and signed an incentive agreement under the job creation income tax credit for targeted businesses program as authorized by § 15-4-2709.

The application for a sales and use tax refund must be accompanied by an endorsement resolution from the local governing authority (city council or quorum court) that authorizes the refund of its local taxes.

Payroll Tax Credit

Act 182 of 2003 § 15-4-2709

The payroll income tax credit for targeted businesses is offered to assist with the start-up of businesses in targeted sectors that pay significantly more than the state or county average wage of the county in which the business locates. This incentive is offered only at the discretion of the Director. In order to qualify for this incentive, the business must be included in one of six targeted business sectors as defined above.

The benefit for a qualifying targeted business is a 10% income tax credit based on its annual payroll, with a cap of $100,000 per year in earned income tax credits for a business that qualifies and is approved for this incentive. The incentive may be offered for a period not to exceed five years. The five-year period begins on the date the financial incentive agreement is signed and may not extend beyond 60 months from that date. Unlike the other incentives, this targeted payroll income tax credit may include existing employees in the calculation of payroll to qualify for this benefit.

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 the commission for the sale of credits earned under this section within one year of issuance. Upon approval by the commission, the business may sell earned income tax credits within one year of issuance. The commission may assist the business in finding a buyer for the tax credits.

Since one of the allowable costs under the research and development tax credits (discussed below) is the salary of a person performing research, a business earning job creation income tax credits for targeted businesses is prohibited from earning research and development tax credits, as authorized by § 15-4-2708 or by § 26-51-1102(b) for the same expenditure.

RESEARCH AND DEVELOPMENT INCENTIVES

Arkansas's Research and Development incentive programs are intended to provide incentives for university-based research, in-house research, and research and development in start-up, technology-based enterprises.

University Based Research and Development

An eligible business that contracts with one or more Arkansas colleges or universities in performing research may qualify for a 33% income tax credit for qualified research expenditures.

In-House Research and Development

New and existing eligible businesses that conduct "in-house" research that qualifies for federal research and development tax credits may qualify for in-house research income tax credits.  

The credit allowed is 20% of qualified research expenditures that exceed the base year, for a period of three-years and the incremental increase in qualified research and expenditures for the succeeding two years.

The income tax credit earned for in-house research and development may be used to offset 100% of the businesses' state income tax liability.  Any unused credit may be carried forward for a period of nine years.

Research and Development in Area of Strategic Value

The Strategic Value Research and Development incentives are for qualifying businesses that invest in:  1) in-house research in an area of strategic value; or 2) a research and development project offered by the Arkansas Science and Technology Authority. Research in an area of strategic value means research in fields having long-term economic or commercial value to the state, and that have been identified in the research and development plan approved from time to time by the Board of Directors of the Arkansas Science and Technology Authority.  

The income tax credit is equal to 33% of qualified research expenditures. The maximum tax credit that may be claimed by a taxpayer under this program is $50,000 per tax year. Any unused credit may be carried forward for nine years beyond the tax year in which it was earned.

R&D Tax Incentives

Targeted In-House R&D

Act 182 of 2003 § 15-4-2708(c)

Businesses deemed by the commission to fit within the six business sectors classified as "targeted businesses" may enter into a financial incentive agreement for income tax credits based on qualified research and development expenditures. An eligible business may be approved for an income tax credit each year equal to 33% of the qualified research and development expenditures incurred each year for the first five years of the financial incentive agreement. This incentive is a discretionary incentive and is offered only at the discretion of the Director. The application for this income tax credit shall include a project plan, which clearly identifies the intent of the project, the expenditures planned, the start and end dates of the project and an estimate of total project costs. The Department is partnering with the Arkansas Science and Technology Authority which will review all applications for R&D tax credits and monitor projects if appropriate. The Commission will adhere to some of the federal guidelines for qualifying research for federal tax credits as a guide in determining the eligibility for this state income tax credit.

Qualified research expenditures include in-house expenses for taxable wages paid and supplies used in the conduct of qualified research. Qualified research must satisfy all of the following tests in order to qualify:

• The activity must be undertaken for the purpose of discovering information which is technological in nature;
• The application of technological information must be intended to be useful in the new or improved business component; and
• Substantially all of the activities related to the research effort must constitute elements of a process of experimentation relating to a new or improved function, performance, reliability or quality.

The following activities are specifically excluded from the definition of qualified research:

• Any research conducted after the beginning of commercial production;
• Research adapting an existing product or process to a particular customer's need;
• Duplication of an existing product or process;
• Surveys or studies;
• Research related to certain internal-use computer software;
• Research conducted outside of Arkansas; and
• Research in the social sciences, arts or humanities.

Qualified wages are taxable wages paid to a full-time permanent employee for performing qualified services. Qualified services are services of employees who are:

• Engaging in qualified research, which means the actual conduct of qualified research;
• Engaging in the direct supervision of qualified research, which means the immediate supervision (first-line management) of qualified research; and
• Engaging in the direct support of research activities that constitute qualified research.

The qualified services must be in the direct support of either A) persons engaging in the actual conduct of qualified research or B) persons who are directly supervising persons engaging in the actual conduct of qualified research.

Direct support of research activities does not include general administrative services or other services only indirectly of benefit to the research activity.

As with the job creation income tax credits for targeted businesses, the income tax credit for research and development earned by targeted businesses may be sold. The business must make application to the commission for the sale of credits earned under this section within one year of issuance. Upon application and approval by the commission, the business may sell earned income tax credits within one year of issuance. The commission may assist the targeted business in finding a buyer for the tax credits.

A targeted business earning research and development tax credits is prohibited from earning job creation tax credits, as authorized by § 15-4-2709 or research tax credits as authorized by § 15-4-2708(a), for the same expenditure.

Combination with other incentives: The income tax credit for research by a targeted business authorized by 15-4-2708(c) may not be used with:

• Other in-house research and development incentives as authorized by § 15-4-2708(b) or § 15-4-2708(d)(1)(A); or

Any other incentive in Act 182 of 2003 (Consolidated Incentive Act of 2003) for the same expenditures.

EQUITY INVESTMENT TAX CREDIT

The Equity Investment Incentive Program is a discretionary incentive targeted toward new, technology-based businesses paying wages in excess of the state or county average wage.  If offered, this program allows an approved business to offer an income tax credit to investors purchasing an equity investment in the business.

The income tax credits issued under this program are equal to 33 1/3% of the amount invested by an investor in an eligible business.   

The income tax credit earned may be used to offset 50% of the investor's Arkansas income tax liability.  Any unused credit may be carried forward for a period of nine years.

The income tax credit earned may be sold upon approval by the Commission.

Equity Investment Tax Rules

NON-PROFIT INCENTIVES

Offered at the discretion of the Executive Director of the Economic Development Commission.

The primary purpose of the Non-Profit Incentive Program is to encourage the location or expansion of national or regional non-profit headquarters in Arkansas.

Eligible non-profit organizations must create a payroll for new, full-time, permanent employees of at least $500,000 and pay an average wage in excess of 110% of the state or county average wage (whichever is less) in the county in which the organization locates or expands. In addition, the non-profit organization must receive 75% of its income from out-of-state sources.

If offered, this program provides an incentive payment (payroll rebate) equal to 4% of the payroll of the new, full-time, permanent employees for a period of up to five years.

In addition to the payroll rebate, this program also provides a sales and use tax refund for eligible projects that invest a minimum of $250,000. The refund is eligible for taxes paid on construction materials, and machinery and equipment associated with the approved project.

Rules

Organizations that have been approved by the Arkansas Secretary of State as having met the qualifications for a non-profit organization in Arkansas and which has also received a 501(c)(3), 501(c)(6), or 501(c)(9) designation from the United States Internal Revenue Service.

If you have any questions concerning the Non-Profit Incentive Program, please call the Arkansas Economic Development Commission at 501-682-5277.

Non-Profit Incentive Final Rules 2009

TOURISM DEVELOPMENT INCENTIVES

The Arkansas Tourism Development Act provides state sales and use tax credits and income tax credits to businesses initiating approved tourism attraction projects.

Rules

Final Tourism Rules and Regulations 2009

Sales tax credits shall be determined in accordance with the following criteria:

• Eligible minimum project costs must be $1 million, except in high unemployment counties,* where it is $500,000.
• The sales tax credits are calculated based upon 15% of eligible project cost for projects spending more than $1 million; credits are 25% of eligible project cost for the projects in high unemployment counties.*
• The sales tax credit may be applied against the business's increased sales tax liability that results from the project.
• Other review criteria may be requested by the Arkansas Economic Development Commission to determine whether the tourism attraction project meets the intent of the Act.

Additionally, eligible businesses may receive a state income tax credit equal to 4% of the annual payroll of each new, full-time, permanent employee.

The income tax credits begin in the year in which the new employees are hired. Any unused portion of the credit may be carried forward against corporate income tax for the succeeding nine years.

* The following Arkansas counties are designated as "high unemployment" counties based upon the 2010 statewide annual labor force statistics compiled by the Arkansas Department of Workforce Services: Arkansas, Chicot, Clay, Crittenden, Dallas, Desha, and Mississippi.

SPECIALIZED INCENTIVES

Arkansas provides a 30% state income tax credit to eligible companies for reimbursements they make on behalf of employees for approved educational expenses. The employees must successfully complete the course at an accredited Arkansas post-secondary educational institution. The credit authorized by this program cannot offset more than 25% of the company's state income tax liability in any tax year.

Digital Production/Film

Arkansas offers financial incentives to foster the development of the digital and traditional film industry in Arkansas.

Arkansas Digital Product and Motion Picture Industry Development Act

(Act 816 of 2009) Rules and Regulations

Tuition Reimbursement

A tuition tax credit is offered in Arkansas.

Tuition Reimbursement

Child Care Facilities

Arkansas offers a tax incentive for businesses that provide childcare for their employees.

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. The income tax credit may be carried forward for two years or until used entirely, whichever occurs first.

In addition to either option, businesses may receive a refund on sales and use taxes on construction materials and furnishings purchased to equip an approved childcare facility.

To qualify for these incentives, the business must be approved to operate an early childcare program. Eligibility is determined by the Arkansas Department of Human Services, Division of Child Care and Early Childhood Education. The business may choose to operate the facility or contract the operations.

Equipment Recycling

Arkansas allows taxpayers to receive an income tax credit for the purchase of equipment used exclusively for reduction, reuse or recycling of solid waste material for commercial purposes, whether or not for profit, and the cost of installation of such equipment by outside contractors. Such equipment must be used in the collection, separation, processing, modification, conversion, treatment or manufacturing of products containing at least 50% recovered materials of which at least 10% is post-consumer waste.

The amount of the tax credit shall equal 30% of the cost of equipment and installation costs deemed eligible by the Arkansas Department of Environmental Quality. Credits may be carried over a maximum of three consecutive years following the taxable year in which the credits accrued.

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 depreciation.

Bond Financing (Amendment 82)

Amendment 82 provides eligible companies bond financing to assist with infrastructure costs associated with locating their operations to Arkansas. The state can issue bonds to fund a prospect’s infrastructure needs through the Arkansas Development Finance Authority, limited to 5% of net general revenues during the most recent fiscal year.

AEDC will perform a comprehensive cost-benefit analysis to determine the level of incentives the state can use to compete for the project and still obtain a good return on the state’s investment.