Taxes and Incentives - Metro Little Rock Alliance

Tax Climate in Metro Little Rock

A stimulating business environment in Central Arkansas.

Arkansas and Metro Little Rock offer a fair and pro-business tax system and among the lowest costs of doing business in the nation. Competitive incentives are available at the state and local level to fuel job creation, capital investment, research and development and more. ArkPlus, a state income tax credit program, provides tax credits of 10% of the total investment in a new location or expansion project. Infrastructure grants and tax refunds on the purchase of building materials and taxable machinery spur industrial development. Businesses that partner with an Arkansas university on research and development may qualify for a 33% income tax credit. Community grants and other funding are available to assist companies at the local level. For qualifying projects, Metro Little Rock economic development organizations partner with the state to develop tailored packages for businesses’ specific needs.

Taxes

Credit Where it Counts

A major indicator of a state’s business climate is its tax structure. In Arkansas, we have a fair and pro-business tax system, bringing in companies from around the world who want to take advantage of our tax rates, exemptions and credits for their businesses.
The taxation report includes up-to-date statewide data in a quick read with helpful infographics. Read about tax benefits for companies, including sales and use tax reductions, exemptions for environmentally-friendly practices, capital gains tax reductions and more.

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Incentives

Maximizing Investment

Arkansas and Metro Little Rock offer competitive incentives to spur job creation, business investment, research and development and more. Browse a sample of key incentive programs below, or read the full list of state-level incentives. For qualifying projects, Metro Little Rock economic development organizations partner with the state to develop tailored packages for businesses specific needs.

Tax Back

The Tax Back program provides sales and use tax refunds on the purchase of building materials and taxable machinery and equipment to qualified businesses.

Research & Development Incentives

Arkansas provides incentives for university-based research, in-house research, and research and development in start-up, technology-based enterprises. These tax credits may be carried forward for nine years and offset up to 100 percent of a business’ tax liability in a given year.

Create Rebate

Create Rebate provides annual cash payments based on a company’s annual payroll for new, full-time, permanent employees.

Property Tax Abatement

Businesses that use either tax-exempt or taxable industrial revenue bond financing can negotiate with cities and counties a property tax abatement for both real and personal property. The maximum amount of property tax that can be abated in Arkansas is 65 percent.

Advantage Arkansas

Advantage Arkansas offers a state income tax credit for job creation based on the payroll of new, full-time, permanent employees hired as a result of the project.

ARKPlus

ArkPlus is a state income tax credit program that provides tax credits of 10% of the total investment in a new location or expansion project.

Infrastructure Grants

The Arkansas Economic Development Commission has the ability to share the cost of project infrastructure needs by committing grants from state and federal infrastructure funds. These funds are offered at the discretion of the State. The amount of assistance committed is dependent upon the strength of the company, of jobs, average wage, project investment and costs associated with facility/site improvements.