State Incentive

Tax Back-Investment Incentives

Summary

Sales and use tax refunds on the purchase of building materials and taxable machinery and equipment to qualified businesses investing the minimum required based on the tier.

The Consolidated Incentive Act 182 of 2003, as amended, provides for TaxBack Program sales and use tax refunds on the purchase of building materials and machinery and equipment to qualifying businesses that create new jobs as a result of construction, expansion, or facility modernization projects in Arkansas. This incentive program is available to all eligible businesses that meet the qualifications for investment and payroll thresholds for the county tier in which it locates or expands and are approved for benefits by the Arkansas Economic Development Commission. The approval is contingent upon receipt of a complete application and a local endorsement resolution for the city, county or both which authorizes the refund of its local taxes to the eligible company. To qualify, the eligible business must invest in excess of one hundred thousand dollars ($100,000) and meet the eligibility criteria of the Advantage Arkansas or the Create Rebate job creation incentive program. The refund of state sales and use taxes shall not include the refund of taxes dedicated to the Educational Adequacy Fund and the taxes dedicated to the Conservation Tax Fund.

ACA § 15-4-2706(d) as amended by Act 327 of 2019 states, to qualify for a refund, a qualified business shall meet the minimum investment thresholds for the tier in which the qualified business expands or locates.

To receive incentives under this program, the qualifying business must apply to the Arkansas Economic Development Commission. For information regarding application into the Tax Back Sales and Use Tax Refund Program, contact Arkansas Economic Development at (501) 682-1121 or visit their website at http://arkansasedc.com/Â