State Incentive

Advantage Arkansas-Job Creation Incentive

Summary

State income tax credit up to five years for job creation based on the payroll of new, full-time, permanent employees hired as a result of the project. See Tier Map for program benefits and requirements, including at least $12.50 average hourly wage.

The Consolidated Incentive Act 182 of 2003, as amended, provides an income tax credit to an eligible company for creating new jobs after the company has signed a financial incentive agreement with the Arkansas Economic Development Commission. The annual payroll of the new employees must meet the payroll threshold for the county tier in which the business is located. The income tax credit earned is a percentage of the annual payroll of the new full-time permanent employees and is earned each tax year for a period of five (5) years. Unused credits may be carried forward for nine (9) years beyond the year in which the credit was first earned. The Advantage Arkansas job creation credit cannot offset more than 50% of a business’s income tax liability in any one tax year.

To claim the credit, attach a copy of the Certificate of Tax Credit issued by Tax Credits/Special Refunds Section to the tax return.

For information regarding application into the Advantage Arkansas Program, contact Arkansas Economic Development Commission at (501) 682-1121 or visit their website at http://arkansasedc.com/