Arkansas’ performance-based incentives are nationally competitive and easy to use. For the first time in its history, the City of Little Rock has also funded performance-based incentives to complement those of the state.
The chamber, in partnership with theArkansas Economic Development Commission and the region's cities, focuses on a business’ specific needs, conducts a cost-benefit analysis, and designs a tailored incentive package unique to that business.
Incentive and exemption programs
Advantage Arkansas Income Tax Credit
ArkPlus Income Tax Credit
Create Rebate Payroll Cash Payments
Digital Product and Motion Picture Industry Development Act
Equity Investment Tax Credit
Property Tax Abatement
Recycling Tax Credit
Research & Development Incentives
Sales Tax Reduction for Power
Sales Tax Exemption for Manufacturing Equipment
Sales Tax Reduction for Repair & Replacement Parts
Targeted Business Incentives
Tax Back Sales & Use Tax Refund
Opportunity Zones – Investment Prospectus for Pulaski County
Pulaski County has a total of eight opportunity zones which includes four in Little Rock, three in North Little Rock and one in Jacksonville/Sherwood. The Tax Cuts and Jobs Act included a new federal incentive — Opportunity Zones — that provides three tax benefits for investing unrealized capital gains in Opportunity Zones. Please see the Opportunity Zone Investment Prospectus to find out more details about the benefits of opportunity zones and where in Pulaski County these zones are located.
According to CNBC, Arkansas has the 4th lowest cost of doing business, and that ranking can be attributed to the low taxes.
Personal Income does not exist at the city or county levels, while state rates range from 1 to 7 percent.
Corporate Income Tax does not exist at the city or county levels, while state rates range from 1 to 6.5 percent.
Real and Personal Property Tax does not exist at the state level, but rates per $1,000 of assessed valuation (20 percent assessment ratio) for individuals and businesses are $70.10 for Little Rock, $66.80 for North Little Rock, and $62.90 for Maumelle.
Sales and Use tax is 6.5 percent for the state, with an additional 1 percent for Pulaski County and 1.5 percent for the City of Little Rock, 1 percent for the City of North Little Rock, and 1 percent for the City of Maumelle.
Corporate Franchise Tax is .30 percent times the number of outstanding capital shares by par value for Arkansas corporations and .30 percent times the percentage of assets applicable to Arkansas for out-of-state corporations.
Unemployment Insurance - A business with no previous employment record in Arkansas is taxed at 3.2% on the first $12,000 of each employee’s earnings until an employment record is established, usually within three years. An existing Arkansas business is taxed between 0.1% and 14%. Each business’ employment record is determined primarily by its taxable payroll and history of employee voluntary termination. The tax is determined by past experience and the amount of the reserve ratio. The reserve ratio is the excess of contributions paid over benefits charged as related to payroll. The higher the reserve-ratio, the lower the tax rate.
The Little Rock region is home to many large employers in a variety of industries. Government, healthcare, manufacturing/distribution and banking/finance are the top employers. Little Rock has seen a growth in FinTech and tech-related companies.