Financing | Investment & Job Creation Incentives | Specialized Incentives | Taxation | Other Advantages of Arkansas

Financing
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New and expanding businesses can access a wide variety of state and federal funding sources for start-ups and expansions in Arkansas.

• Industrial Revenue Bonds
• Bond Guaranty Programs
• Economic Infrastructure Fund
  • The purpose of the Economic Infrastructure Funds (EIF) is to provide funding for grants to cities and counties to provide financial assistance necessary to undertake public works projects and/or training efforts which support private sector job creation opportunities or partially defray costs of providing access to publicly owned industrial parks. EIF grants may also be provided for expansion of the aircraft and aerospace industry and for port and waterway economic development projects. (ACT 498 of 2001)
• Small Business Loan Program Act of 1999
• Economic Development District Revolving Funds
• ASTA Investment Fund
• Arkansas Capital Corporation
• Venture Capital Investment Fund
• Tax Increment Financing

Investment and Job Creation Incentives
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Arkansas is known as a "Solutions State." We operate the way businesses do, proactively anticipating opportunities and quickly responding to challenges in innovative ways. This approach, combined with our incentive programs, makes Arkansas a profitable choice
for locating or expanding a business.

Arkansas' various incentives are nationally competitive, understandable, and easy to use. The Arkansas Department of Economic Development will focus on your business's specific needs, conduct a cost-benefit analysis, and design a tailored incentive package.

• Advantage Arkansas (Arkansas Enterprise Zone Program)
• InvestArk (Economic Investment Tax Credit Act)
• Create Rebate Program
• Arkansas Economic Development Act (AEDA)
  

Specialized Incentives
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• Biotechnology Development and Training
• Child Care Facility Tax Incentive
• Emerging Technology Development
• Customized Training Incentives
• Recycling Equipment Tax Credit
• Motion Picture Incentive
• Tourism Development
• Tuition Reimbursement Tax Credit
  • Arkansas provides a 30 percent income tax credit to eligible companies for reimbursements they make to employees for approved educational expenses. The employees must attend an accredited Arkansas post-secondary educational institution.

Other Advantages of Arkansas
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When a business locates in Arkansas, it can take advantage of the following additional benefits:

• Public Roads Improvements Credit
  
• Research and Development Tax Credit
  
• Chemical, Catalysts, & Reagents Exemption on Sales Tax
  • Catalysts, chemicals, reagants, and solutions that are consumed or used in producing, manufacturing, fabricating, processing, or finishing articles of commerce at manufacturing or processing plants or facilities; and/or to prevent or reduce air, water, and other contamination are exempt from sales tax.
    
• Freeport Law
  
  • Arkansas' Freeport Law exempts from property tax those finished goods and raw materials in transit or awaiting shipment to out-of-state companies.
• Right-to-work
  • Arkansas is a right-to-work state, as guaranteed by the Arkansas Constitution
    
• Unemployment Insurance and Workers Compensation
  • Arkansas has favorable unemployment insurance and workers' compensation rates

The above information is from the Arkansas Department of Economic Development.