Jonesboro Business Incentives
Doing Business in Jonesboro
Jonesboro is a vibrant place to start, nurture, and expand business operations. Not only does the city’s location in northeastern Arkansas allow for easy access to transportation, but companies are benefitted from the recent reductions in the corporate tax rate. The strong commitment to innovation targeted investment, and worker training makes it an interesting option to consider. Jonesboro boasts a workforce of over 170,000 along with a fresh source of talent from Arkansas State and other local universities. Beyond this, there are several incentives to help businesses drive growth, train employees, and make equipment/facility improvements. The combination of these factors provides an important advantage to those operating in or expanding to, the area. The details of eligibility requirements and specific benefits vary by incentive program. A high-level overview of program details is provided below.
Select Jonesboro Business Incentive Programs
- Advantage Arkansas Income Tax Credit – Facilitated by the Arkansas Economic Development Commission, eligible companies receive an income tax credit for creating new jobs. To qualify, the annual payroll of the new employees must meet a minimum threshold for the county tier in which the business is located. The amount of the credit is equal to a percentage of the annual payroll of the new full-time employees and is awarded each year for a maximum five-year period. The credit can be carried forward up to nine years and may not offset more than 50% of state tax liability in a single year.
- ARKPlus Tax Credit – This tax credit program offers tax credits of 10% of the total investment in a new location or expansion project. To qualify, a business must make both a minimum investment and incur a minimum payroll of full-time, permanent employees hired because of the project. The business must reach the investment threshold within four years of signing the financial incentive agreement. The tax credit can be used to offset 50% of state income tax liability in the year the credit is earned. Unused credits may be carried forward for nine years.
- In-House Research & Development Tax Credit – An eligible business that has conducted in-house research which qualifies for the federal R&D tax credit can qualify to receive a state tax credit. Award determination is made at the discretion of the Arkansas Economic Development Commission’s Executive Director. The credit is limited to 20% of qualified research expenses. The credit can be used to offset 100% of annual income tax liability and may be carried forward for up to nine years.
- Child Care Facility Credit – An income tax credit is available to businesses that offer on-site childcare services to employees. The credit is equal to 3.9% of the annual salary of employees that exclusively provide care or a $5,000 credit for the first year the business provides childcare services. The credit can only be used in the taxable year after the wages have been paid to childcare workers. Unused credits can be carried forward for a period of up to two years. Certification from the Arkansas Department of Education is necessary to establish eligibility.
- Tuition Reimbursement Credit – A state income tax credit is available for Jonesboro companies that either reimburse full-time employees or directly pay the cost of tuition, fees, and books for ongoing college education. Only expenses incurred from an accredited post-secondary institution within the state qualify. The credit is equal to 30% of the total reimbursement but may not exceed 25% of a company’s total state tax liability in a single year. The credit cannot be carried forward.