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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: 4.5%
County Sales Tax: 2.5%
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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