POPULATION: 2,959,373 (2013 estimate)
LABOR FORCE: 1,326,528 (2013 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, steel
COLLEGE GRADUATES: (Age 25 and over) 20.6 % 2013-ACS-1 Year Est
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: 6.5 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 46.53
BUSINESS INCENTIVES:
• Industrial revenue bonds
• General Obligation State Bond Financing (Amendment 82)
• 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
• Advantage Arkansas (income tax credit)
• Tax Back (sales and use tax refund)
• InvestArk (sales and use tax credit)
• Create Rebate Program (payroll rebate)
• ArkPlus (income tax credit based on total investment)
• Targeted Businesses (income tax credit and sales and use tax refund)
• Research and Development (income tax credit)
• Nonprofit Incentives (payroll rebate and sales and use tax refund)
• Child Care Facility Tax Incentive
• Customized training incentives
• Recycling Equipment Tax Credit (income tax credit)
• Tourism Development (sales and use and income tax credits)
• Tuition Reimbursement Tax Credit (income tax credit)
• Freeport Law
• Equity Investment Tax Credit (income tax credit)
