Taxes & Incentives

Cabot has a competitive ad valorem and excise tax structure, falling near the median in Arkansas in both local excise taxes and in local ad valorem property taxes. About 75 percent of the property taxes assessed go to fund public schools. Paragould has the ability to negotiate ad valorem property tax abatements at a level to be determined on a case-by-case basis, up to 65 percent of the taxes on real property and equipment.

State Investment and Job Creation Incentives:

The state of Arkansas offers incentives for new and expanding businesses.

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Tax Back: Sales and use tax refund for building materials and taxable machinery and equipment for new and expanding industries which also are creating jobs. Local endorsement resolution required.

Advantage Arkansas: State income tax credit based on payroll of new, full-time, permanent employees hired as a result of the project.

Create Rebate: Annual cash payments for a period of years based on payroll for new, permanent, full-time jobs. This incentive is offered at the discretion of the AEDC Executive Director.

Arkplus: State income tax credit of 10 percent of total investment amount, in a new location or expansion project. This incentive is offered at the discretion of the AEDC Executive Director.

Community Development Block Grants: AEDC shares the cost of project infrastructure needs by committing grants from state and federal infrastructure funds. The amount of assistance committed is dependent upon the strength of the company, number of jobs, average wage, project investment and costs associated with facility/site improvements.

Targeted Business Incentives: For Knowledge-based businesses, providing refunds of sales and use taxes paid on building materials, machinery and equipment associated with project, as well as transferrable income tax credits based on payroll, investment and research and development expenditures. Offered at discretion of AEDC Director.

Research and Development Incentives: Arkansas’s Research and Development incentive programs are intended to provide incentives for university-based research, in-house research, and research and development in start-up, technology-based enterprises. Tax credits under these programs may be carried forward for nine years and may offset up to 100% of a business’ tax liability in a given year.

Equity Investment Tax Credit: Transferable: Transferable state income tax credit on investment in technology based businesses.

Tourism Development Incentives: State sales and use tax and income tax credits for approved tourism attraction projects.

Digital Production/Film Requirements: Each project submitted for funding under this program is evaluated on a case-by-case basis.

Tuition Reimbursement: State income tax credit to eligible companies for reimbursements they make on behalf of employees for approved educational expenses. The employees must successfully complete the course at an accredited Arkansas post-secondary educational institution.

Company Childcare Facilities: Tax incentive for businesses that provide childcare for their employees.

Recycling Equipment: An income tax credit for the purchase of equipment used exclusively for reduction, reuse or recycling of solid waste material for commercial purposes, whether or not for profit, and the cost of installation of such equipment by outside contractors.

Replacement and Repair of Manufacturing Machinery and Equipment Sales and Use Tax Refund: Certain state sales and use taxes relating to the partial replacement and repair of machinery and equipment used directly in manufacturing.

Arkansas Historic Rehabilitation Income Tax Credit: State income tax credit for certified rehabilitation of eligible income and non-income producing properties.

Sales Tax Reduction on Electricity and Natural Gas: Reduces sales tax on electricity and natural gas used directly in the manufacturing process.

Bond Financing: Approved by voters as Amendment 82 to the Arkansas Constitution allows state to issue General Obligation Bonds to finance infrastructure costs associated with eligible companies locating or expanding in Arkansas.

Opportunity Zones: An opportunity zone is an economically distressed community where new investment, under certain conditions, may be eligible for preferential tax treatment.