Equity Investment Tax Credit
The Equity Investment Incentive Program is a discretionary incentive targeted toward new, technology-based businesses paying wages in excess of 150% of the state or county average wage. If offered, this program allows an approved business to offer an income tax credit to investors who provide a cash infusion to the previously approved business through an equity purchase or a convertible debt instrument.
The income tax credit/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 AEDC.
Research and Development Tax Credits and Incentives
Tax credits are intended to provide incentives for donations to universities, university-based research, in-house research of several kinds, and research and development in start-up, technology-based enterprises. It is important for the applicant to understand the different incentives and to select the most appropriate for the eligible research and development activity. For more information, contact Steve Stanley at [email protected]
Seed Capital Investment Program
The Seed Capital Investment Program (SCIP) can provide working capital to help support the initial capitalization or expansion of technology-based companies located in Arkansas. The program can provide working capital up to $500,000 of the company's total financing needs. Investments made by the SCIP fund are repaid through a royalty-based agreement. For more information, contact Steve Stanley at [email protected].
Technology Development Program
The Technology Development Program (TDP) provides royalty financing for qualified projects possessing a well-developed, comprehensive project plan, and which utilizes the benefits of science and technology to provide economic and employment growth potential in Arkansas.
The maximum investment is $100,000 and is repaid through a royalty-based agreement but the agreement will expire automatically after 10 years. For more information, contact Steve Stanley at [email protected].