State Relocation Incentives
Taxes
Real & Personal Property
The combined city, county and school tax rate is $0.03899 of 20% of assessed
(market) value. Manufacturing inventories and goods of retailers, wholesalers,
and distributors are not subject to property tax.
Income
Arkansas corporate income tax ranges from 1.0% to 6.5% of net income. Arkansas
personal income tax varies from 1.0% to 7.0% of taxable income.
Sales
State Sales Tax: $.04625
County Sales Tax: $.02
Machinery and equipment used in manufacturing and purchased for a new manufacturing
facility or to replace old machinery or equipment are exempt from sales tax. Finished
products and component parts delivered out-of-state are exempt from state sales tax.
Pollution control equipment is exempt from State sales tax.
Enterprise Zones
The Arkansas Aeroplex is designated an Enterprise Zone. Companies locating
in an Enterprise Zone and meeting certain requirements are eligible for tax exemptions
and credits.
Visit the Arkansas Dept. of Finance page for more info.
Business Incentives
Bond Financing
The Blytheville-Gosnell Regional Airport Authority is authorized to issue revenue
bonds and mortgage bonds to finance the development of industrial, distribution,
education, and training facilities as well as aviation related facilities.
The City of Blytheville may offer industrial development revenue bond financing to
industries and is authorized under State law to negotiate an agreement for payments
in lieu of taxes.
The State of Arkansas through the
Arkansas Department of Economic Development and the Arkansas
Development Finance Authority (ADFA) may provide revenue bond financing
to manufacturers and aerospace companies for the acquisition of land,
buildings, and new equipment.
Venture Capital Program
The Arkansas Science and Technology Authority (ASTA) provides venture capital
financing. A $1.8 million fund provides seed capital for new and developing
technology-based companies through loans, limited stock purchase, and royalty
agreements.
Bond Guarantee Program
Bond financing guarantees up to $6 million ($2 million from ADFA) are available
through these agencies. The program provides credit enhancement which lowers
interest to the issuer.
Industrial Training
Under the Arkansas Industry Training Program customized industrial training is
provided for new industry employees without cost to the employer. Pre-employment or
on-the-job training is available. Arkansas also assists with Quality Management
through an organized program of seminars, executive roundtables, and a comprehensive
resources center. Training in basic skills is available through the Mississippi
County Community College and the Cotton Boll Technical Institute.
Arkansas Tax Incentives
Exemption from sales and use taxes on machinery and equipment used directly in
manufacturing or processing. Exemption from sales tax on pollution control equipment.
Exemption from inventory or property tax on required pollution control equipment.
Exemption form inventory or property tax on goods in transit or finished goods destined
for out-of-state customers. Exemption from sales tax on raw materials which become a
recognizable part of a manufactured product.
Arkansas Aerospace Program
Qualified aerospace companies with at least 50 net new employees within a sixty month
period may claim a State income tax credit of $2000 per net new employee. Aerospace
companies may also claim a sales and use tax credit on materials used in construction
of a business facility and on equipment and machinery used in connection with the
business. Parts or other personal property incorporated in commercial jet aircraft
components or sub components are exempt from sales and use tax. Services associated
with the alteration, addition, cleaning, refinishing, replacement or repair of
commercial jet aircraft or components are exempt from the State gross receipts tax.
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