Business just got a little more exciting in the state of Arkansas. The recently concluded 83rd General Assembly passed 10 legislative initiatives to enhance the state's total incentive package, says Jim Pickens, interim director of the Arkansas Dept. of Economic Development.
"Some of those were enhancements to existing incentives, such as the Arkansas Economic Development Act, which will now provide a tax credit of up to 100 percent of an eligible new or expanding company's investment in land, buildings and equipment," Pickens adds. "This incentive is offered at the discretion of the Arkansas Dept. of Economic Development director and requires that a minimum number of new employees be hired and that the company pay wages above the average for the state."
Jim Pickens
Other moves include the following:
- The Arkansas Economic Development Incentive Act (Create Rebate) expanded to include e-commerce businesses. This incentive, offered at the discretion of the director, provides annual cash payments to an eligible new or expanding business equal to 3.9 percent of payroll and requires a minimum number of new employees.
- Changes in the Emerging Technology Act allow for generous tax credits to manufacturers of emerging technologies such as fuel cells, solar cells, electric vehicle components, micro turbines, Stirling engine technology and nanotechnology.
- A new Venture Capital Investment Act gives the state the ability to raise significant amounts of venture capital for investment in startup businesses. The pool of capital, raised from traditional lenders within the state, guarantees principal and interest payments to the lenders and will be managed by a professional, under contract to the state, who has significant experience in venture capital investing.
- A bill passed to appropriate funding for a study to ensure that Arkansas remains competitive with regard to its incentive programs. The study is expected to be complete within a year.
