Arkansas

Sectors it is courting

• Automotive
• Information and Communication Technology

Investment it is seeking from

• Canada
• France
• Germany
• India
• Israel
• Italy
• Japan
• Netherlands
• South Korea
• United Kingdom

Site-selection services it offers

Fully staffed business development team including our Division Director, 4 Project Managers, 4 International Business Developers, a Project Coordinator, Research Manager, and a Sites and Buildings Coordinator who work together, and prospects to help with site selection and project management needs. We also partner with Entergy to maintain and promote our Arkansas Site Selection Center which houses available land and buildings for industrial and commercial development. https://arkansassiteselection.com/aedc/Search/?t=s&cert=1

Incentive programmes

• Grant

  The AEDC may partner with eligible companies (as defined in the Consolidate Incentives Act) and communities to share the cost of project infrastructure needs. These infrastructure needs can include, but are not limited to, site preparation, industrial access roads, sewer and water improvements, rail spurs, parking lots, and other necessary improvements to a facility or site that have been approved by the Commission. The AEDC shares the cost of project investments by committing grants from state and federal infrastructure funds to the company or appropriate county or city government to be used for project needs. The AEDC considers project investment at the appropriate time, once an Arkansas site is identified, specific project infrastructure costs are known and due diligence on the project and company is complete. The amount of assistance committed by the AEDC is dependent upon the due diligence, number of jobs, average wage, project investment and costs associated with facility/site improvements. The AEDC will require the company to sign a grant agreement and a grant reimbursement agreement that will include repayment terms in the event certain job, wage and investment thresholds are not met and maintained.

• Tax Credit

  The Advantage Arkansas Program is a job tax credit program for qualifying new and expanding companies. The credits earned will be equal to the appropriate percentage of the net, new payroll for a period of five years with a minimum annual payroll ranging from $50,000 - $125,000. Employees must be taxpayers of Arkansas to qualify for the credit and the average hourly wage of the new employees must be at least $14.11. The ArkPlus Program is offered at the discretion of the AEDC Executive Director. The incentive offers an income tax credit for qualifying new and expanding companies. If this incentive is offered by the Executive Director, the program provides a ten percent (10%) income tax credit based on the total investment in a new location or expansion project. The income tax credits may be used to offset 50% of a business’ income tax liability in the tax year the credit is earned. Any unused credits may be carried forward for nine years beyond the year in which the credit was first earned. Arkansas also provides a thirty percent state income tax credit to eligible companies for reimbursements the companies make on behalf of employees for approved educational expenses.

• Tax Refund or Rebate

  Act 1404 of 2013, as codified in §§ 26-52-447, 26-53-149 and 15-4-3501, establishes two options by which certain state sales and use taxes relating to the partial replacement and repair of machinery and equipment used directly in manufacturing may be refunded to eligible taxpayers beginning July 1, 2014. The Tax Back Program grants a refund of state and local sales and use taxes paid on the purchases of the material used in the construction of a building or buildings or any addition, modernization or improvement to a new or expanding eligible business. A sales and use tax refund is also allowed for the purchases of taxable machinery or equipment associated with the building or project. The Create Rebate Program is an incentive the State of Arkansas reserves for competitive projects that bring quality jobs to communities. This program is offered at the discretion of the AEDC Executive Director. The rebate benefits will be equal to the appropriate percentage (based on the tier chart on page 8) of the net, new payroll with a minimum annual payroll ranging from $1,250,000 - $2,000,000. The required payroll threshold must be met within 24 months after signing the Create Rebate agreement.

• Equity Investment

  The Equity Investment Incentive Program is a discretionary incentive targeted toward new, technology-based businesses paying wages in excess of the state or county average wage. If offered, this program allows an approved business to offer an income tax credit to investors purchasing an equity investment in the business. The income tax credit/credits issued under this program are equal to 33 1/3% of the amount invested by an investor in an eligible business. The income tax credit earned may be used to offset 50% of the investor’s Arkansas income tax liability in any one tax year. Any unused credit may be carried forward for a period of nine years. The income tax credit earned may be sold upon approval by AEDC.

• Other

  The Arkansas Historic Rehabilitation Income Tax Credit Program, administered by the Department of Arkansas Heritage, offers a 25% state income tax credit for certified rehabilitation of eligible income and non-income producing properties. AEDC is committed to meet the training needs of new and expanding businesses in the state. The AEDC’s Customized Training Grants are flexible and highly customizable, providing reimbursement for both on and off-site training for newly created positions related to an expansion or new location. Pre-employment training, new employee orientation, on- the-job training, and/or skills upgrades for new positions qualify under this program. The Arkansas Tourism Development Act provides state sales and tax credits and income tax credits to businesses initiating approved tourism attraction projects. Specialized Digital Production and Film Incentives are also available.

Shovel-ready sites

• The West Memphis I-40 Mega site is a certified Entergy Select Site. This largest site in Arkansas is an ideal location for a large industrial user, with direct access to I-40 which runs east to west across the U.S. from North Carolina to California and I-55 which runs north and south from Chicago to New Orleans. The site has a Union Pacific rail line and intermodal facility less than two miles north. Cost and timing estimates are available for all utility extensions. A Phase I Environmental Assessment, soil borings, and cultural reviews are also available on the property. A 60-minute drive time provides access to approximately 1.6 million people with a labor force participation rate of 63.3%. Located just 10 miles from downtown Memphis, your workforce will have access to an array of lifestyle and living choices.

  Site details

• 130-acre site near steel mill in Osceola, Arkansas. The site is in close proximity to I-55, the Osceola River Port, and the Burlington Northern Sante Fe class 1 railroad. Certified in April 2021 as an Entergy Arkansas Select Site (SS). This site meets the 50-point criteria for answering site location questions. See attached documents below for certification documentation.

• The REDI Arkansas Manufacturing Center is presented by AR-TX REDI, Texarkana’s regional economic development organization. A region with strong manufacturing roots, Texarkana was developed around a complex rail system more than a century ago and now has grown into a national crossroads for transportation. Under the control of AR-TX REDI, this United States manufacturing complex offers incredible opportunities for original equipment manufacturers (OEMs) who need to reach consumers or their customers on time and on schedule. Fronting Interstate 30 and U.S. Highway 67, the 1,350-acre site provides close connectivity to I-49 and future I-69 (currently I-369) as well as access to three U.S. highways including U.S 59, U.S. 71 and U.S. 82 within the region. The REDI Arkansas Manufacturing Center is within 300 miles of eight major cities including Dallas, Fort Worth, Houston, Oklahoma City, Little Rock, Memphis, Shreveport and Baton Rouge and a day’s drive to other markets such as San Antonio, New Orleans, Birmingham, Nashville, St. Louis, Kansas City and Mexico. And that means that you can reach 34 million people within 300 miles and more than 62 million within 500 miles of this site.

  Site details

Programmes for international technology startups

Arkansas’s Research and Development incentive programs are intended to provide incentives for university-based research, in-house research, and research and development in start-up, technology-based enterprises. Tax credits under these programs may be carried forward for nine years and may offset up to 100% of a business’ tax liability in a given year. At the discretion of the AEDC Executive Director, targeted businesses may be offered special incentives designed to help new, knowledge-based, start-up businesses.

Incubators and accelerators

• FIS Fintech Accelerator

  The FIS Fintech Accelerator focuses on market-validated fintech companies. In the program, the companies receive training and access to bankers, subject matter experts, and financial service executives.

• Plug and Play Tech Center

  Plug and Play NWA focuses on supply chain and logistics information, leveraging its Silicon Valley startup ecosystem with world-leading Arkansas corporations.

Additional services

The AEDC has three international offices: China, Japan, and Europe, with business developers who help strengthen our foreign business relationships and promote FDI in Arkansas. Arkansas also houses a World Trade Center, located in Rogers, Northwest Arkansas. The Arkansas Economic Development Commission houses a Small Business & Entrepreneurship Development division which assists start-ups, existing small businesses, micropreneurs, and venture companies with the business development process. The AEDC also houses a Minority and Women-Owned Business division which helps those businesses with certification and accreditation, as well as connecting them with many business resources through their vast network.

Investor account, as submitted

“Fiocchi identified Arkansas as a primary target for its expansion based on the skilled labor of the state, business climate, and geographic location. This investment is a unique opportunity for Fiocchi” said Jared Smith, Fiocchi’s General Manager.

Submitted by the economic development organisation, not independently verified.

Regional partner organisations

• Mississippi County Economic Developmentclif@cottontosteel.com(870) 532-6084
• AR TX Regional Economic Development, Inc.rob.sitterley@ar-txredi.com(903) 824-1792
• Little Rock Regional Chamber of Commercejreddish@littlerockchamber.com(501) 374-2001

Who to contact

• Olivia WomackDirector, Business DevelopmentL.Olivia.Womack@arkansasedc.com

1 Commerce Way Suite 601, Little Rock, AR 72202-2088