Offered at the discretion of the Director of the Economic Development Commission, the primary purpose of the Nonprofit Incentive Program is to encourage the location or expansion of national or regional nonprofit headquarters in Arkansas.
Eligible nonprofit organizations must create a payroll for new, full-time, permanent employees of at least $1 million dollars and pay an average wage in excess of 110% of the state or county average wage (whichever is less) in the county in which the organization locates or expands. In addition, the nonprofit organization must receive 75% of its income from out-of-state sources.
If offered, this program provides an incentive payment (payroll rebate) equal to 4% of the payroll of the new, full-time, permanent employees for a period of up to five years. In addition to the payroll rebate, this program also provides a sales and use tax refund for eligible projects that invest a minimum of $500,000. The refund is eligible for taxes paid on construction materials, and machinery and equipment associated with the approved project.
Eligibility – Organizations that have been approved by the Arkansas Secretary of State as having met the qualifications for a nonprofit organization in Arkansas and which has also received a 501(c) designation from the United States Internal Revenue Service.