Arkansas Food & Beverage Industry ResourcesAugust 30, 2018
Arkansas’ ease of doing business is just as well known as our having invented cheese dip and making the best sweet tea around. Arkansas is a business-friendly state with an abundance of resources to help food and beverage businesses succeed.
Companies opening new businesses, relocating, or expanding existing operations are finding Arkansas full of food and beverage advantages. From cash rebates to research and development tax credits, Arkansas business incentives encourage job creation and investment, and many companies in the food and beverage industry are eligible.
Job Creation and Investment Incentives
Arkansas’ job creation incentives are based on payroll of new, full-time, permanent employees as a result of a project. These programs use a tier system based on poverty and unemployment rates, per capita personal income and population growth to determine qualification criteria and benefits. You can find the Arkansas Incentives Tier Map here and explore our website to learn more about job creation incentives.
Qualified businesses investing at least $100,000 and who meet other eligibility requirements can take advantage of the Tax Back program, which provides sales and use tax refunds on the purchase of building machinery and equipment. Learn more here.
Arkansas Tax Exemptions and Reductions
Several exemptions from sales and use taxes may be available to qualifying food and beverage businesses, like machinery and equipment required by state law to be purchased for air or water pollution control; for businesses that provide childcare for their employees; and for the purchase of equipment used exclusively for the reduction, reuse or recycling of solid waste material for commercial purposes.
Other Arkansas tax advantages beneficial to qualifying food and beverage manufacturing businesses include refunds on the replacement and repair of manufacturing machinery and equipment and sales tax reduction on electricity and natural gas used directly in the manufacturing process.
And Arkansas’ Freeport Law provides that raw materials and finished goods in transit or awaiting shipment to out-of-state customers are exempt from property tax.
Get more information about tax exemptions and reductions here; and visit this page for targeted business incentives, including those for emerging technologies in agriculture, food and environmental sciences.
Training and Consulting
AEDC’s Manufacturing Solutions works with businesses across industries to provide training, hands-on implementation and expert coaching to instill a sustainable culture of operational excellence and innovation. Modern food processing and packaging companies are likely to find many helpful resources from our Manufacturing Solutions division.
Arkansas company Packing Specialties, Inc., was founded in Fayetteville, Arkansas, in 1974. They pioneered the use of printed PVC stretch films for poultry products and carried this packaging technology to the produce and red meat industries, and beyond. After attending several Manufacturing Solutions workshops, events and certificate series, Packaging Specialties increased their overall equipment effectiveness from 26 percent to 33 percent at a cost savings of $200,000.
A Strong Business Climate
Arkansas has the nation’s lowest cost of doing business and an affordable cost of living. AEDC works diligently to help food and beverage companies looking to start, expand or relocate, find the very best incentives so companies go from spending money to making money quickly and efficiently.