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Incentives

LOCAL INCENTIVES

In order to facilitate location of a project in Pine Bluff or Jefferson County, several local incentives can be used to offset start-up costs for a new location.  These incentives are over and above those offered by the State of Arkansas:

  • Jefferson County voters approved a 3/8-cent sales tax in February 2011 to generate funds for economic development incentives and workforce training.  Collection of the tax began in July 2011.  Although the tax sunset in 2018, revenues accumulated and will be considered, on a case-by-case basis by the county oversight board, for distribution based on the number of jobs created and capital investment of individual projects.
  • If the client uses revenue bond financing for the project, Alliance staff can assist the company in its negotiations with the county for a payment in-lieu of property taxes agreement (PILOT) up to 65%.
  • Alliance staff can facilitate contact with City permitting authorities.
  • Alliance staff can facilitate contact with AEDC regarding State of Arkansas incentives.

STATE INCENTIVES

The State of Arkansas operates the way businesses do, proactively anticipating opportunities and quickly responding to challenges in innovative ways. This approach, combined with incentive programs, makes Arkansas a profitable choice for locating or expanding a business.

Arkansas' performance-based incentives are naturally competitive and easy to use. The Arkansas Economic Development Commission (AEDC) will focus on your business's specific needs, conduct a cost-benefit analysis, and design a tailored incentive package.

Though AEDC, Arkansas offers several programs for qualifying new and expanding companies. Below is a summary of state programs. More information is available at www.arkansasedc.com.

ADVANTAGE ARKANSAS PROGRAM: Advantage Arkansas is an income tax credit program. The credits earned will be equal to the appropriate percentage (based on tier map) of the net, new payroll for a period of five years. Jefferson County, as a Tier 4 county, is eligible for the most program benefit.

ARKPLUS PROGRAM: This incentive, at the discretion of the executive director of AEDC, offers and income tax credit for qualifying new and expanding companies. It provides a 10% income tax credit based on the investment in a new location or expansion project.

CREATE REBATE PROGRAM: The State of Arkansas reserves this incentive for projects that bring quality jobs to communities. Offered at the discretion of the AEDC Executive Director, it provides a cash rebate based on the eligible net new payroll of a qualifying company.

Qualified and approved projects may be granted incentives in the following categories:

Tax Back Program. This program grants a majority refund of state and local sales and use taxes paid on the purchases of materials used in construction of a building or buildings or any addition, modernization or improvement to a new or expanding eligible business. A sales and use tax refund is also allowed for the purchases of taxable machinery or equipment associated with the building project.

Infrastructure Assistance. AEDC often partners with companies and communities to share the cost of project infrastructure needs. Two programs are available: Community Development Block Grants and Governor’s Quick Action Closing Fund.

Customized Training Incentives. AEDC’s Customized Training Grants are flexible and highly customized and provide reimbursement for both on- and off-site training for newly created positions related to an expansion or new location. These funds are offered at the discretion of the executive director of AEDC.

Other Incentives include Recycling Tax Credit, Research and Development Tax Credits, Early Stage Knowledge-Based Programs, and Tuition Reimbursement Tax Credits.

FREE PORT LAW: This law exempts from property tax those finished goods and raw materials in transit or awaiting shipment to out-of-state customers.