Business Support
Tax Incentives
Arkansas's incentives are nationally competitive, understandable and easy to use. The Arkansas Economic Development Commission will focus on your business' specific needs and design a tailored incentive package.
Laws governing Arkansas incentives were changed during the 2003 legislative session. Six incentives were enhanced, and new incentives were added.
Major revisions include the following:
- Incentives are now based on payroll instead of number of jobs.
- They are determined according to location and are more lucrative in less developed counties.
- They can be combined to allow for more flexibility.
- There are special incentives for start-up businesses in six targeted sectors:
- Agricultural, food, and advanced materials and manufacturing systems
- Environmental sciences
- Biotechnology, bioengineering and life sciences
- Information technology
- Transportation logistics
- Bio-based products
Child Care Facility Program - Sales and use tax refunds or corporate income tax credits for businesses providing eligible day care services.
Tourism Development Act - Sales tax credits and corporate income tax credits for eligible businesses initiating approved tourist attraction projects.
Additional Incentives - Available for recycling and other job creation efforts.
Financing Available
- Municipal and County Industrial Revenue Bonds
- General Obligation Bonds
- State Loan/Guarantee Programs
- Development Finance Corporations
- Diamond State Ventures (Venture Capital)
Free Port Law
No tax on goods in transit or raw materials and finished good destined for out-of-state sales.
Foreign Trade Zones (FTZ)
A Foreign Trade Zone is located at the Little Rock Port. Subzones are located in El Dorado, Forrest City and West Memphis.
Labor Laws
Right-to-work law forbids compulsory union membership for employment. Minimum wage is set by state and federal laws.
