Offers a state income tax credit for job creation based on the payroll of new, full-time, permanent employees hired as a result of the project. The table above shows the job creation requirements and the available benefit under the program. The Advantage Arkansas income tax credit is earned each tax year for a period of five years. The income tax credit cannot offset more than 50 percent of a business’ income tax liability in any one year and may be carried forward for nine years beyond the tax year in which the credit was first earned.
A state income tax credit program that provides tax credits of 10% of the total investment in a new location or expansion project. This discretionary incentive is offered in highly competitive situations. ArkPlus requires both a minimum investment and a minimum payroll of new, full-time, permanent employees hired as a result of the project, depending on the tier in which the business locates. Total project expenditures must be incurred within four (4) years of the date the project is approved by AEDC.
Arkansas offers tax incentives for businesses that provide childcare for their employees. A business may choose between two state income tax credit options: 1) a credit of 3.9% of the total annual payroll of the employees working in the childcare facility, or 2) a one-time $5,000 state income tax credit for the first year that the business provides its employees with a childcare facility. Any unused credit may be carried forward two years.
Incentives are negotiated and offered at the discretion of the Executive Director of the Arkansas Economic Development Commission. Create Rebate provides annual cash payments based on a company’s annual payroll for new, full-time, permanent employees. In order to qualify, the company must create a minimum of $2 million annually in new payroll. The minimum payroll must be met within 24 months of the effective date of the financial incentive agreement. No benefits may be claimed until the $2 million annual payroll threshold is met.
Entergy’s Economic Redevelopment Rider (ERDR) offers an instant 25% discount on net monthly billing for businesses taking service in an unoccupied building in the Entergy Arkansas service territory.
– Building located in the Entergy Arkansas service territory
– Unoccupied for at least six months
– Existing electrical infrastructure with no material changes
– Anticipated monthly energy demand is between 150 kW and 500 kW
– Two-year Agreement for Electric Service
– The Economic Redevelopment Rider is available to customers with Small General Service (SGS), Large General Service (LGS), or Large General Service Time-of-Use (GST) rate schedules. Discounted rates apply for 24-month term.
Arkansas allows taxpayers to receive an income tax credit for the purchase of equipment used exclusively for reduction, reuse or recycling of solid waste material for commercial purposes, whether or not for profit, and the cost of installation of such equipment by outside contractors. The amount of the tax credit shall equal 30% of the cost of equipment and installation costs deemed eligible by the Arkansas Department of Environmental Quality. Credits may be carried forward for three consecutive years following the taxable year in which the credits accrued.
For qualifying businesses that invest in: 1) in-house research in an area of strategic value; or 2) a research and development project offered by the Arkansas Science and Technology Authority. Research in an area of strategic value means research in fields having long-term economic or commercial value to the state, and that have been identified in the research and development plan approved from time to time by the Board of Directors of the Arkansas Science and Technology Authority. The income tax credit is equal to 33% of qualified research expenditures. The maximum tax credit that may be claimed by a taxpayer under this program is $50,000 per tax 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, including a refund of sales and use taxes paid on the purchase of building materials and machinery and equipment associated with the approved project, a transferable income tax credit equal to 10% of payroll for up to five years, and a transferable income tax credit equal to 33% of eligible research and development expenditures.
Provides sales and use tax refunds on the purchase of building materials and taxable machinery and equipment to qualified businesses investing at least $100,000 and who either a) sign a job creation agreement under the Advantage Arkansas or Create Rebate programs within 24 months of signing the Tax Back agreement or b) have met the requirements of an Advantage Arkansas or Create Rebate agreement within the previous 48 months. The state tax rate is 6.5% so the eligible refund would be 5.5%.
Arkansas provides a 30% state income tax credit to eligible companies for reimbursements they make on behalf of employees for approved educational expenses. The employees must successfully complete the course at an accredited Arkansas post-secondary educational institution. The credit authorized by this program cannot offset more than 25% of the company’s state income tax liability in any tax year.
This jobs incentive program provides Louisiana income and franchise tax credits to a new or existing business located in Louisiana creating permanent new full-time jobs, and hiring at least 50% of those net new jobs from one of four targeted groups. The benefit provides either a one-time $3,500 or $1,000 tax credit for each net new job created and a rebate of state sales and use taxes paid on qualifying materials, machinery, furniture and/or equipment purchased or a 1.5% refundable investment tax credit on the total capital investment, excluding tax exempted items.
The Louisiana Industrial Ad Valorem Tax Exemption Program (ITEP) is an original state incentive program that abates, up to eight years, local property taxes (Ad Valorem) on a manufacturer’s new investment and annual capitalized additions related to the manufacturing site.
FastStart, ranked as the nation’s no. 1 state workforce training program by Business Facilities Magazine for eight consecutive years, provides customized employee recruitment, screening, training development and training delivery for eligible, new or expanding companies — all at no cost. Based on a company’s immediate and long-term workforce needs, the FastStart team crafts unique programs that ensure high-quality, flexible workers are prepared on day one and beyond.
The Quality Jobs, or QJ, program provides a cash rebate to companies that create well-paid jobs and promote economic development. The program provides up to a 6% cash rebate on 80% of gross payroll for new direct jobs for up to 10 years. Effective July 1, 2018, the rebate is available on 100% of gross annual payroll. Provides a state sales/use rebate on capital expenditures or a 1.5% project facility expense rebate on the total capital investment, excluding tax exempt items.
The Research and Development Tax Credit encourages existing businesses with operating facilities in Louisiana to establish or continue research and development activities within the state. Provides up to a 40% tax credit on qualified research expenditures incurred in Louisiana — with no cap and no minimum requirement.
The Advantage Jobs Incentive Program provides for a rebate of a percentage of Mississippi payrolls to qualified employers for a period of up to 10 years. This incentive is available to businesses that promise significant expansion of the economy through the creation of jobs. The average of all jobs included in the program must meet the minimum average wage requirements.
Provides funding to municipalities and counties for publicly owned infrastructure projects to assist with the location, expansion or retention of businesses. CDBG Economic Development funds must be tied to job creation, and municipalities and counties must apply on behalf of a business locating or expanding in Mississippi.
Provides grant assistance to counties or municipalities to finance infrastructure projects to support business locations and expansions in Mississippi. Funding from this program can be used by municipalities and counties to assist with the location or expansion of businesses. Usage of the funds must be directly related to the construction, renovation or expansion of industry.
A full exemption from property taxes may be granted by local governing authorities on personal property that is being held and stored prior to transport to a final destination outside the state. The exemption may be granted for all local property taxes and may be granted for any period of time set by the local governing authority.
The Growth and Prosperity Program is designed to encourage development in economically challenged areas of the state. The program designates specific
counties as GAP counties and provides income, franchise, sales and property tax incentives to companies that locate or expand in these areas of the state.
An exemption from property taxes is available to eligible industries that locate or expand in the state. This 10-year exemption from property taxes may be granted by local governing authorities on real and tangible personal property being used in the state. The exemption may be granted for all local property taxes except school district taxes on any property, but may not be granted on finished goods or rolling stock.
Provides grants to “at risk” industries that have been operating in the state for at least three years and that have lost jobs or are at risk of losing jobs because these jobs have been outsourced.
Jobs tax credits are credits that can be applied to state income tax to reduce an employer’s income tax liability. These credits are earned by certain types of businesses that create and sustain new jobs in Mississippi.
Existing manufacturers that have operated in Mississippi for two or more years may be eligible for investment tax credits that can be applied to the entity’s state income tax liability. To qualify, an existing manufacturer must invest $1,000,000 or more in buildings and/or equipment used in the manufacturing operation. The investment credit is calculated as 5% of the eligible investment for a project.
The Mississippi Clean Energy Initiative program allows the State of Mississippi to certify companies that manufacture systems or components used to generate clean, renewable or alternative energy. This includes nuclear, solar, wind and hydro generation. The program provides qualifying companies with a 10-year exemption from state income and franchise taxes, as well as a sales tax exemption to establish a plant or expand an existing production facility. To qualify, businesses must commit to invest a minimum of $50 million and create 250 full-time jobs.
The State of Mississippi provides a state sales tax exemption for all computing equipment and software used by companies certified as data centers by the State of Mississippi. Both new and replacement equipment qualify for the tax exemption.
A credit to Mississippi income or insurance premium tax is available for eligible investments made by Community Development Entities (CDEs) in designated low income census tracts in the state, as defined by the U.S. Census Bureau. These credits are state credits that act as companion credits to the Federal New Markets Tax Credits (NMTC) Program.
A sales and use tax exemption is available for eligible businesses that create their national or regional headquarters in Mississippi, transfer their headquarters to the state or grow their existing headquarters operations in the state. This exemption applies to component building materials used in the construction or improvement of a facility, as well as the machinery and equipment used in the facility. A minimum of 20 new headquarters jobs must be created at the location in order for a business to qualify for this exemption.
National or Regional Headquarters Tax Credits are credits equal to between $500 and $2,000 per position that can be applied to state income tax to reduce an eligible entity’s corporate income tax liability. These credits are awarded to encourage companies to establish a headquarters in Mississippi and have their executive officers and other high-level employees based in the state. These credits are also awarded to companies that already have headquarters in Mississippi and create additional jobs at their headquarters operations in the state.
An exemption from property taxes on land, building and equipment is available and is valid for up to 10 years on property purchased with industrial revenue bond proceeds from bonds issued by the Mississippi Business Finance Corporation (MBFC).
For new or expansion projects in the state that have a private capital investment in excess of $100,000,000, a negotiated fee can be set that is paid in place of the standard property tax levy. This incentive is provided to encourage development with local communities and must be agreed to by the local board of supervisors and municipal authorities prior to being awarded.
Research and Development Skills Tax Credits are credits equal to $1,000 per employee per year for a five year period and can be used to reduce an eligible entity’s income tax liability. These credits are available for any position requiring research or development skills.
Rural Economic Development (RED) Credits are credits that can be used to reduce Mississippi corporate income tax. These credits are created based on the amount of bond-related debt service paid on industrial revenue bonds issued by the Mississippi Business Finance Corporation (MBFC).
To encourage construction and expansion within the state, the Mississippi Business Finance Corporation may issue industrial revenue bonds for financing approved projects. Once projects are induced in the bond program, a sales tax exemption is available for all purchase made with bond proceeds.
A sales and use tax exemption is available for eligible businesses that construct a new facility or expand an existing facility in the state.
Skills training tax credits are credits that can be applied to state income tax to reduce an employer’s income tax liability. These credits are earned by certain types of businesses that offer training to their employees in Mississippi.
Chapters 380 (cities) and 381 (counties) of the Local Government Code respectively grant cities and counties broad discretion to make loans and grants of public funds or the provision of public services, at little or no cost, to promote all types of business development including industrial, commercial and retail projects. Each agreement may be uniquely tailored to address the specific needs of both the local government entity and the business prospect.
Applies to state sales and use tax on certain items necessary and essential to the operation of a qualified data center. The exemption is for state sales tax only. Local sales taxes are due on purchases of these qualifying items.
Provides assistance to Texas communities, businesses and workers affected by, or vulnerable to, the closure or realignment of military installations and the reduction of federal defense contracting expenditures. Designated readjustment projects are eligible to apply for a state sales and use tax refund on qualified expenditures. The Defense Economic Readjustment Zone Program is administered through the Office of the Governor, Economic Development Bank.
A freeport exemption is a property tax exemption. A community may choose to offer the freeport exemption for various types of goods that are detained in Texas for a short period of time. Freeport property includes goods, wares, merchandise, ores and certain aircraft and aircraft parts. Freeport property qualifies for an exemption from ad valorem taxation only if it has been detained in the state for 175 days or less for the purpose of assembly, storage, manufacturing, processing or fabricating. For certain aircraft parts, a community, by official action, may extend the deadline to 730 days.
Provides state sales and use tax exemptions to taxpayers who manufacture, fabricate or process tangible property for sale. The exemption generally applies to tangible personal property that becomes an ingredient or component of an item manufactured for sale, as well as taxable services performed on a manufactured product to make it more marketable. Natural gas/electricity exemptions require a “predominant use study” that shows that at least 50% of the electricity or natural gas consumed by the business is used directly in the manufacturing process. Manufacturing exemptions are administered by the State Comptroller of Public Accounts.
The incentive provides an exemption from property taxation for pollution control equipment. Compliance with environmental mandates through capital investments do not result in an increase in a facility’s property taxes. To qualify, a facility must first receive a determination from the Texas Commission on Environmental Quality (TCEQ) that the property to receive the exemption is used wholly or partly for preventing, monitoring, controlling or reducing air, water or land pollution. The Pollution Control Equipment Incentive is administered through the Texas Commission on Environmental Quality.
Various tax exemptions, franchise tax exemptions and franchise tax deductions are available for renewable energy equipment and systems. Renewable energy encompasses solar, wind, ethanol and biodiesel energy.
Companies engaged in research and development activities can receive reductions in either applicable sales tax or franchise tax (not both). Certain qualifications apply. The R&D tax credit is administered through the Comptroller of Public Accounts.
The Skills Development Fund pays for the training, the college administers the grant, and businesses create new jobs and improve the skills of their current workers.
Encourages large-scale manufacturing, research and development, renewable energy, nuclear and integrated gasification combine cycle electric generation facilities and other large capital investment projects in the State of Texas. Companies invest a specified amount of money to qualify for a 10-year limitation on the appraised value of a property for the maintenance and operations portion of the school district property tax. The qualifying investment amount is determined on a sliding scale that begins at $100 million for large urban areas and $30 million for rural areas.
The fund is a cash grant used as a financial incentive tool for projects that offer significant projected job creation and capital investment and where a single Texas site is competing with another viable out-of-state option. Since its inception in 2004, the TEF has awarded 140 grants totaling $600 million across a wide variety of industries and projects.
Approved projects are eligible to apply for state sales and use tax refunds on qualified expenditures. The level and amount of refund is related to the capital investment and jobs created at the qualified business site. The Enterprise Zone Program is administered through the Office of the Governor, Economic Development Bank.