ARKANSAS’ PERFORMANCE-BASED INCENTIVES are nationally competitive and easy to use. For the first time in its history, the city of Little Rock has also funded performance-based incentives to complement those of the state. The chamber, in partnership with the Arkansas Economic Development Commission and the city of Little Rock, focuses on a business’ specific needs, conducts a cost-benefit analysis, and designs a tailored incentive package unique to that business.
PERSONAL INCOME TAX does not exist at the city or county levels, while state rates range from 1 to 5.9%.
CORPORATE INCOME TAX does not exist at the city or county levels, while state rates range from 1 to 6.2%.
REAL AND PERSONAL PROPERTY TAX does not exist at the state level, but rates per $1,000 of assessed valuation (20% assessment ratio) for individuals and businesses are $70.10 for Little Rock, $66.80 for North Little Rock, and $62.90 for Maumelle.
CORPORATE FRANCHISE TAX is .30% times the number of outstanding capital shares by par value for Arkansas corporations and .30% times the percentage of assets applicable to Arkansas for out-of-state corporations.
RIGHT TO WORK was granted in 1944, when the people of Arkansas amended the state constitution to ensure that all Arkansans would have the right to work, regardless of their affiliation or non-affiliation with any type of labor organization.
WORKERS COMPENSATION is one of the most progressive programs in the nation, with more than 230 insurance underwriters, a 53% decrease in the state’s premiums from 1996-2012, and the fourth best combined loss ratio of all 51 jurisdictions. Unemployment Insurance averages 3.8% for existing and new businesses.
INCENTIVE PROGRAMS
• Advantage Arkansas Income Tax Credit
• ArkPlus Income Tax Credit
• Create Rebate Payroll Cash Payments
• Digital Product and Motion Picture Industry Development Act
• Equity Investment Tax Credit
• Freeport Law
• Infrastructure Grants
• Property Tax Abatement
• Recycling Tax Credit
• Research & Development
• Sales Tax Reduction for Power
• Sales Tax Exemption for Manufacturing Equipment
• Sales Tax Reduction for Repair & Replacement Parts
• Targeted Business
• Tax Back Sales & Use Tax Refund
• Training Incentives
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