Business Incentives
State:
Arkansas's performance-based incentives are nationally competitive and user-friendly. The Arkansas Economic Development Commission will focus on your business's specific needs, and design an incentive package to accommodate your needs.
The Consolidated Incentive Act of 2003 updated many of Arkansas's incentive programs to locate them under one code of law, ยง15-4-2701 et seq., and make the combination of incentives more flexible. Arkansas's job-creation incentives are based on payroll instead of number of jobs and use a tier system to determine the qualification criteria and benefits (Drew County and Monticello are Tier 3), depending on where the business locates or expands their operations in Arkansas. Arkansas's tier system ranks each county, based on poverty rate, unemployment, per capita income and population growth. Tiers are assigned annually on July 1, based on the previous year's statistics.
In addition to an array of competitive incentives, when a business locates in Arkansas, it can take advantage of the following additional benefits:
- Favorable unemployment insurance and workers' compensation rates;
- A reduced sales tax rate on manufacturing utilities;
- A sales/use tax exemption on manufacturing machinery and equipment;
- A right-to-work state, as guaranteed by the Arkansas Constitution; and
- Favorable individual and corporate income tax rates.
For further information regarding State Incentives please visit www.arkansasedc.com
Local:
Companies utilizing either tax-exempt or taxable industrial revenue bond financing may negotiate for a Payment In Lieu of Taxes (PILOT). The negotiated payment can be up to 65%, but not less than 35% of the property taxes that would have been paid if the property were on the tax rolls.
Monticello Economic Development Commission works with prospective companies to develop a local incentive package based on facilities investment and number of new jobs created at a strong living wage. This package can include but is not limited to:
- City Council resolution for company participation in the Tax Back Program
- MEDC owned industrial park sites/spec building acquisition
- Permitting and inspections
- Water main tap fee provision
