AEDC Proposes Updates to Consolidated Incentives Rules

The Arkansas Economic Development Commission has proposed a number of revisions to its Consolidated Incentives Act rules. These lengthy proposed changes generally implement the numerous changes made by Act 327 of 2019, which was a once-in-a-decade updating of the Consolidated Incentives Act of 2003, Ark. Code Ann. §§ § 15-4-2701 et seq. Businesses considering economic development projects should be careful that they understand and are following the updated law. In many cases the changes slightly expanded the incentives, but in some areas requirements were tightened (Tax Back, R&D credits). [More]

Final AEDC Rules Provide Path for Tax Credit for Donations for Equipment for Higher Education

Arkansas's longstanding donation of equipment tax credit program to encourage partnerships between industry and higher education was substantially expanded in the 2019 session to allow the credit for cash donations instead of only in-kind donations. Effective June 29, 2020, the Arkansas Economic Development Commission has promulgated rules for the program, which is fully operational. Businesses that collaborate with state community colleges or universities for training or research should leverage this program to generate income tax credits equal to 33% of the contribution. [More]

Arkansas Economic Development Commission Redeploys $19 Million to Help Businesses Hurt by Coronavirus Outbreak

In a shift from offense to defense, the Arkansas Economic Development Commission (AEDC) is redeploying funds typically used for job creation projects to instead support existing Arkansas businesses that are being hurt by the business declines associated with the coronavirus outbreak. The state is offering bridge loans, generally of up to $250,000, to businesses. The funds come from two pools of money normally used for job creation economic development grants: the state Quick Action Closing Fund (QACF) and the federal Community Development Block Grant (CDBG) program. Businesses needing capital to sustain operations should consider working with AEDC. [More]