Incentives

Through established partnerships, at the local, regional, and state level West Memphis is able to create a competitive business environment that facilitates success.  Each project is considered with the best interest of the company in mind.  The incentives that support industrial growth are described below:

LOCAL INCENTIVES

In order to facilitate the location or expansion of a project in West Memphis, several local incentives can be used to offset costs.  These incentives are over and above those offered by the State of Arkansas:

  • In 2011, West Memphis voters approved Ordinance #2238 in support of the levy of 0.25% sales and use tax as a source of funding for economic development projects located in or near the City of West Memphis.  The project under consideration must be assessed by the West Memphis Economic Development office. 
  • If the client uses revenue bond financing for the project, West Memphis Economic Development can assist the company in its negotiations with the county for a payment-in-lieu of property taxes agreement (PILOT) up to 65%.
  • West Memphis has municipally owned utilities with competitive rates in water, sewer, and electric.

STATE INCENTIVES

The State of Arkansas operates the way businesses do, proactively anticipating opportunities and quickly responding to challenges in innovative ways. This approach, combined with incentive programs, makes Arkansas a profitable choice for locating or expanding a business.

Arkansas' performance-based incentives are naturally competitive and easy to use. The Arkansas Economic Development Commission (AEDC) will focus on your business's specific needs, conduct a cost-benefit analysis, and design a tailored incentive package.

Though AEDC, Arkansas offers several programs for qualifying new and expanding companies. Below is a summary of state programs. More information is available at www.arkansasedc.com.

ADVANTAGE ARKANSAS PROGRAM: Advantage Arkansas is an income tax credit program. The credits earned will be equal to the appropriate percentage (based on tier map) of the net, new payroll for a period of five years. Jefferson County, as a Tier 4 county, is eligible for the most program benefit.

ARKPLUS PROGRAM: This incentive, at the discretion of the executive director of AEDC, offers and income tax credit for qualifying new and expanding companies. It provides a 10% income tax credit based on the investment in a new location or expansion project.

CREATE REBATE PROGRAM: The State of Arkansas reserves this incentive for projects that bring quality jobs to communities. Offered at the discretion of the AEDC Executive Director, it provides a cash rebate based on the eligible net new payroll of a qualifying company.

Qualified and approved projects may be granted incentives in the following categories:

Tax Back Program. This program grants a majority refund of state and local sales and use taxes paid on the purchases of materials used in construction of a building or buildings or any addition, modernization or improvement to a new or expanding eligible business. A sales and use tax refund is also allowed for the purchases of taxable machinery or equipment associated with the building project.

Infrastructure Assistance. AEDC often partners with companies and communities to share the cost of project infrastructure needs. Two programs are available: Community Development Block Grants and Governor’s Quick Action Closing Fund.

Customized Training Incentives. AEDC’s Customized Training Grants are flexible and highly customized and provide reimbursement for both on- and off-site training for newly created positions related to an expansion or new location. These funds are offered at the discretion of the executive director of AEDC.

Other Incentives include Recycling Tax Credit, Research and Development Tax Credits, Early Stage Knowledge-Based Programs, and Tuition Reimbursement Tax Credits.

FREE PORT LAW: This law exempts from property tax those finished goods and raw materials in transit or awaiting shipment to out-of-state customers.