Hitting the Bullseye
A pro-Second Amendment state with a robust outdoor economy, Arkansas welcomes firearms and ammunitions companies looking to start up, expand, or relocate. From powder and primer to gunsmithing and shooting accessories, the Natural State has been home to companies across all sectors of the firearms and ammunition industry for decades, a legacy it will continue to grow in the years to come.
The Industry at a Glance
- Home to the Duck Hunting Capital of the World: Stuttgart, Arkansas
- 3rd in economic output per capita in the arms and ammunition industry (Source: National Shooting Sports Foundation)
- 3rd Most Gun-Friendly State (Source: Ammo.com)
- 3rd Largest Exporter of Firearms and Ammunitions in the U.S. (Source: Global Trade Atlas, 2023)
- 8 pro-gun bills passed into law during the 2023 legislative session
- $2.3B in economic output
INFRASTRUCTURE
- Three U.S. interstates connecting east and west coasts, and the Canada and Mexico borders
- 16,418 miles of state and U.S. Highways – 12th largest system in the U.S.
- Eight intermodal freight facilities with four riverports
- 2,542 miles of Class 1 rail systems
- #3 in the nation with 1,000 miles of inland, navigable waterways
- Approximately 100 public airports including Clinton National, Northwest Arkansas National, and close proximity to Memphis International and the Fed-Ex hub
Well-trained workforce
- 7th highest percentage of manufacturing employment (Source: Business Facilities)
- 1.36M skilled and trained workforce
- 12% of Arkansas’ workforce is employed in manufacturing
- 8,400+ people employed in the arms and ammunitions industry.
Business Climate in Arkansas
- #3 Least Expensive State for Starting a Small Business (Source: SimplifyLLC)
- #2 on the Cost of Living Index (Source: C2ER)
- 7th highest percentage of manufacturing employment (Source: Business Facilities)
EDUCATION
- 50 colleges, universities & 2-year colleges throughout Arkansas
- 2,100+ engineering degrees awarded each year
- 150k+ students enrolled at an Arkansas institution of higher learning
- Black River Technical College is 1 of only 11 accredited gunsmithing programs in the US – and the only institution connected to a law enforcement training academy.
- Ozarka College's Precision Machining program prepares students for a career in manufacturing, providing them with skills in manual machining and operation of CNC mills and lathes.
Firearms & Ammunition Industry
Executive Overview
Arkansas is Primed for Success
Home to the duck hunting capital of the world and the 3rd most gun-friendly state, Arkansas is the natural choice for firearms and ammunition companies to find success.
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Arkansas Offers a Business-Friendly Tax Environment
November 01, 2017When trying to decide where to locate (or relocate) your business, a state’s tax structure can tell you a lot about the business climate there. In Arkansas, we have a fair and pro-business tax system, bringing in companies from around the world who want to take advantage of those tax credits for their business.
Taxes are rarely simple, so we’ve done our best to bring you the top 10 ways Arkansas’s tax structure is friendly to new and existing businesses:
1. Arkansas’s corporate income tax is moderate, ranging from 1 percent to 6.5 percent of net income.
2. Arkansas offers competitive income tax exemptions for qualified manufacturers.
3. Businesses may be eligible for a one-percentage point refund on the 6.5 percent Arkansas sales and use tax for purchases of machinery and equipment
or replacement parts purchased to modify, replace or repair manufacturing machinery and equipment. Additional discretionary refunds are available through the Arkansas Economic Development Commission.
4. Arkansas manufacturers may take advantage of the reduced sales and use tax rate of 0.625 percent for energy (electricity and natural gas) used in the manufacturing process.
5. Businesses may claim certain exemptions from Arkansas sales and use taxes, listed here.
6. Businesses may apply to the Arkansas Department of Finance and Administration for a refund of city or county sales and use taxes.
7. A business with no previous employment record in Arkansas is taxed at 3.2 percent on the first $12,000 (starting January 1, 2018, the wage base will decrease to $10,000) of each employee’s earnings until an employment record is established, usually within three years. Existing Arkansas businesses pay an unemployment insurance tax rate between 0.1 percent and 14.0 percent, determined by past experience and the amount of the reserve-ratio.
8. The Capital Gains Tax Reduction (Act 1173 of 2015) allows for an exemption of 50 percent of net capital gains. The amount of net capital gain in excess of $10,000,000 from a gain realized on or after January 1, 2014, is exempt from the state income tax.
9. Real and personal property financed by revenue bonds and general obligation bonds may be exempt from local property taxes during the lease-amortization period in which a local government retains the title to a property. Payments by businesses to local governments in lieu of property taxes are generally encouraged and negotiated between the locality and the company.
10. Arkansas’s Freeport Law §26-26-1102 provides that all goods manufactured within the state and stored for shipment outside Arkansas shall not be assessed for taxation in the state. Also covered in this tax exemption are goods moving through the state that may be stored in a warehouse, dock, etc., which are in transit to a destination outside of Arkansas.
You're in good company
At AEDC, we know economic advancement doesn’t happen by accident. We work strategically with businesses and communities to create strong economic opportunities, making Arkansas the natural choice for success. Here are some examples of businesses that are thriving!
Arkansas offers a range of competitive incentives for businesses looking to open, expand or relocate.
