BusIness GuIde

Act 269 states: "Tangible personal property intransit for a destination within this State shallbe assessed only in the taxing district of its destination.Tangible personal property in transitthrough this State and tangible personal propertymanufactured, processed or refined in this Stateand stored for shipment outside the State shall,for purposes of ad valorem taxation, acquire nositus in the State and shall not be assessed fortaxation in this State."A unique feature of Act 269 is that goods that aremanufactured in this state and then stored in awarehouse here before distribution to points outsidethe state are not assessed for taxation inArkansas.rEsEarch anD DEvElopmEntincEntivEsEligible businesses that contract with one or moreArkansas colleges or universities in performingresearch may receive a 33 percent income taxcredit. Eligible businesses performing in-houseresearch may receive a 10 percent income taxcredit, capped at $10,000 per year. Targetedbusinesses may also earn transferable income taxcredits equal to 33 percent of approved expendituresfor in-house research.nonproFit incEntivEsOffered at the discretion of the director of theEconomic Development Commission, theprimary purpose of the Nonprofit IncentiveProgram is to encourage the location or expansionof national or regional nonprofit headquartersin Arkansas.Eligible nonprofit organizations must create apayroll for new, full-time, permanent employeesof at least $1 million and pay an average wage inexcess of 110 percent of the state or countyaverage wage (whichever is less) in the county inwhich the organization locates or expands. Inaddition, the nonprofit organization must receive75 percent of its income from out-of-state sources.If offered, this program provides an incentivepayment (payroll rebate) equal to 4 percent ofthe payroll of the new, full-time, permanentemployees for a period of up to five years.In addition to the payroll rebate, this programalso provides a sales and use tax refund foreligible projects that invest a minimum of$500,000. The refund is eligible for taxes paidon construction materials and machinery andequipment associated with the approved project.Eligibility: Organizations that have been approvedby the Arkansas Secretary of State ashaving met the qualifications for a nonprofitorganization in Arkansas and which has alsoINCeNTIvesreceived a 501(c) designation from the UnitedStates Internal Revenue Service.targEtED businEss incEntivEsTargeted business incentives are offered at thediscretion of the director of the Arkansas EconomicDevelopment Commission. Businessesthat qualify as "targeted businesses" may qualifyfor three special incentives designed to help new,knowledge-based businesses in their early years.These discretionary incentives are for start-upcompanies in emerging sectors:• Sales Tax Refund — A refund of sales anduse taxes paid on the purchase of buildingmaterials and machinery and equipmentassociated with the approved project.• Payroll Tax Credit — A transferable incometax credit equal to 10 percent of payroll forup to five years.• Targeted In-House R&D — A transferableincome tax equal to 33 percent of eligibleresearch and development expenditures.The income tax credits earned under this programmay be sold on approval by the EconomicDevelopment Commission.For more information or for eligibility requirementsof any incentive, visit www.arkansasedc.com/business_development/incentives. lEconomic DEvElopmEntblack, white and read all over{ }no matter what source you check, the results are always thesame; little rock soirée is the most read monthly magazinein central arkansas.For advertising information, callAshley James at 372-1443, Ext. 314.Source: ScarboroughLittle Rock, AR2008 Release 2Oct 2007 - Sep 2008Little Rock Regional Chamber of Commerce 2009 Business Guide 83