Incentives

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 

Tier
Benefit Based on Payroll
of New, Full-time,
Permanent Employees
1
3.9%
2
4.25%
3
4.5%
4
5.0%
(See Tier Map)

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 Michael Almond at the Arkansas Economic Development Commission at 1-800-ARKANSAS or 501-682-5277.

 

ArkPlus

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

Tier
Minimum Investment
Minimum Payroll
1
$5,000,000
$2,000,000
2
$3,750,000
$1,500,000
3
$3,000,000
$1,200,000
4
$2,000,000
$800,000
( See Tier Map) 

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 Michael Almond at the Arkansas Economic Development Commission at 1-800-ARKANSAS or 501-682-5277.