POPULATION: 2,915,918 (2010 estimate)
LABOR FORCE:1,353,100 (2010 annual average)
RIGHT TO WORK: Yes
TRADITIONAL INDUSTRIES:Food and kindred products,
metals, paper, rubber/plastics,
timber, transportation, agriculture
EXPANDING INDUSTRIES: Business services/telecommunications,
health services/infotechnology,
transportation equipment,
biotechnology, aerospace, alternative
energy
COLLEGE GRADUATES: (Age 25 and over) 19%
BASIC BUSINESS TAXES:
Corporate Income Tax: 1 percent
of net income on first $3,000;
2 percent on next $3,000; 3 percent
on next $5,000; 5 percent on
next $14,000; 6 percent on next
$75,000; income over $100,000 is
taxed at 6.5 percent
Corporate Organization and
Qualification Fees: Domestic corporations
— $50 for filing articles
of incorporation; $100 for filing
articles of merger or share
exchange; foreign corporations —
$300 for filing application for certificate
of authority
Corporate Franchise Tax:
Domestic — 0.30 percent of proportion
of subscribed capital stock
employed in the state; foreign —
0.30 percent of proportion of capital
stock representing property
owned and used in business
transactions in the state; minimum,
$150
Sales (gross receipts) and Use
Tax: 6 percent gross proceeds of
retail sales of tangible personal
property, certain selected services
and accommodations, with
exemptions
Property Tax: Real and personal
property is subject to taxation by
cities, counties, and improvement
districts at various rates; the
assessed value is 20 percent of
market fair value, and the average
millage rate is 45.97 (2010)
BUSINESS INCENTIVES:
Financing:
• Industrial revenue bonds
• Bond guaranty programs
• Economic Infrastructure Fund
• Small Business Loan Program
• Arkansas Science and
Technology Authority
Investment Fund (seed capital)
• Arkansas Capital Corporation
(loans, shared risks, venture
capital)
• Venture Capital Investment
• Tax increment financing
Investment and job creation
incentives:
• Advantage Arkansas
(income tax credit)
• Tax Back
(sales and use tax refund)
• InvestArk
(sales and use tax credit)
Discretionary incentives
(negotiated by the AEDC
in highly competitive situations):
• Create Rebate Program
(payroll rebate)
• ArkPlus (income tax credit
based on total investment)
• Targeted Businesses (income
tax credit based on payroll)
• Research and Development
(income tax credit)
• Nonprofit Incentives
• "Super Project" Amendment
Specialized incentives:
• Child Care Facility Tax Incentive
• Customized training incentives
• Recycling Equipment Tax
Credit
• Tourism Development
• Tuition Reimbursement
Tax Credit
• Freeport Law
