Regional Review: Southern States Are Hub for Foreign Automakers & Suppliers

Beth Mattson-Teig (Location USA / April 2013)

Over the past decade, the South has emerged as a manufacturing hub for big automakers. Major international firms such as Mercedes-Benz, Toyota, and Volkswagen are just a few of the players that have a strong and growing presence in the South. As the auto industry continues to recover, that formidable industry cluster is fueling growth across Alabama, Arkansas, Kentucky, Louisiana, Mississippi, and Tennessee. More

The States Leading the U.S. Manufacturing Resurgence

Mark Crawford (Q1 / Winter 2013)

Exhibiting know-how and innovation, U.S. manufacturers are adding to their payrolls and economic growth across the nation. We have identified 19 states where manufacturing is leading the way... More

Rural Jobs Challenge Awards Encourage Innovative Partnerships

Beth Mattson-Teig (Fall 2012)

The grants, which were awarded in August, are part of a national competition aimed at encouraging job creation and economic growth in rural communities across the country. More

Public-Private Partnerships Illuminate a Community's Business Environment

Mark Crawford (August 2012)

Companies choosing a location where PPPs are in place can benefit from the public and private sectors commitment to economic growth. More

Regional Review: Automakers Driving Growth in Southern States

Beth Mattson-Teig (August 2012)

Major automakers such as Ford, General Motors, Toyota, and Volkswagen are just a few of the players that have a strong and growing presence in the South. As the auto industry continues to recover, that formidable industry cluster is fueling growth across Alabama, Arkansas, Kentucky, Louisiana, Mississippi, and Tennessee. More

Arkansas Basic Business Taxes 2012

Area Development Online Research Desk (2012)

Arkansas's economic development, finance and tax organizations provide a range of incentive programs to initiate new business and commercial investment. Specific programs include no property tax, sales tax of 6 percent, and tax rebates. More

Arkansas Direct Financial Incentives 2012

Area Development Online Research Desk (2012)

Arkansas' economic development, finance and tax organizations provide a range of incentive programs to initiate new business and commercial investment. Specific programs include industrial revenue bonds, industrial revenue bond guarantees, and a Community Development Block Grant Program. More

Diminishing State Budgets and Public Scrutiny Contribute to Uncertain Business Incentives Climate

Brian Corde, Managing Partner, Atlas Insight (2012 Directory)

Although some state and municipal governments have scaled back their incentives offerings, monies are still available for the "right" projects deemed to benefit their constituencies. More

ARKANSAS at a glance

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 Fund

• 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)