Targeted Business Incentives
Targeted business incentives are offered at the discretion of the Director of the Arkansas Economic Development Commission. Businesses that qualify as "targeted businesses" may qualify for three special incentives designed to help new, knowledge-based businesses in their early years.
These discretionary incentives are for start-up companies in emerging sectors:
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Sales Tax Refund – A refund of sales and use taxes paid on the purchase of building materials and machinery and equipment associated with the approved project
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Payroll Tax Credit – A transferable income tax credit equal to 10% of payroll for up to five years
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Targeted In-House R&D – A transferable income tax equal to 33% of eligible research and development expenditures
Companies must be less than five years old, have an annual payroll between $100,000 and $1 million, show proof of an equity investment of at least $250,000, pay at least 150% of the lesser of the state or county average hourly wage where the business is located, meet requisite payroll thresholds, and do business in one of the six targeted emerging technology secotors identified by AEDC.
The income tax credits earned under this program may be sold upon approval by the Economic Development Commission.
For more information, Joey Dean (Vice President, Economic Development; Executive Director, Metro Little Rock Alliance), 501.377.6006.