Targeted Business Incentives

A refund of sales and use taxes paid on the purchase of building materials and machinery and equipment associated with the approved project A transferable income tax credit equal to 10% of payroll for up to five years A cash rebate equal to 5% of eligible new payroll for up to 10 years A sales or income tax credit equal to 2%-8% of eligible investment A transferable income tax credit equal to 33% of eligible research and development expenditures Eligibility To qualify as a targeted business, companies must meet the following requirements and be classified by AEDC in one of the six targeted emerging technology sectors listed below: Show proof of an equity investment of at least $250,000 Pay at least 150% of the lesser of the state or county average hourly wage where the business is located Meet requisite payroll thresholds Additional eligibility criteria may be required for individually targeted programs (sales and use tax refund for targeted businesses, payroll income tax credit for targeted businesses, payroll rebate for targeted business and targeted ArkPlus). Emerging Technology Sectors INCENTIVES Job Creation Incentives Investment Incentives Exemptions/Reductions Equity Investment Tax Credit Specialized Incentives R&D Credits & Incentives Community Development Block Grant (CDBG) Targeted Business Incentives Advanced Materials & Manufacturing Systems, with emphases on: Electronics Manufacturing Energy-Efficient Storage Devices Environmental Issues Related to Materials & Manufacturing Photonics, Nanotechnology Photovoltaics Biotechnology, Bioengineering and Life Sciences, with emphases on: Biopharmaceuticals & Drug Discovery Cell Molecular Biology Genetics Geriatrics Medical Devices Neuroscience Oncology Protein Structure & Function Rehabilitation Sensor Technology Bio-Based Products, with emphases on: Adhesives Automotive Components Biodiesel Engineered Products from Non-Traditional Biomass Sources Ethanol Methanol Polymers Synthetic Transportation Fuels Information Technology, with emphases on: Database Systems Distributed Systems Knowledge and Data Engineering Software Development State of the Art Applications of Information Technology to Bioinformatics and/or Healthcare Wireless Systems Agriculture, Food and Environmental Sciences, with emphases on: Agricultural Medicine Aquaculture Distributed Energy Generation Energy Reduction Forestry Nutrition Poultry Rice Spatial Technology Toxicology Waste Minimization Transportation Logistics, with emphases on: Automated Systems Intelligent Material Handling Transportation Management Systems Sales and Use Tax Refund for Targeted Businesses This incentive program provides a refund of sales and use taxes paid on the purchases of building materials and taxable machinery and equipment associated with the approved project for targeted businesses, as defined above. In addition to meeting targeted business eligibility requirements, the business must invest at least $100,000 and meet the eligibility criteria of the Targeted Business Payroll Income Tax Credit Program. A targeted business with an annual payroll in excess of one million dollars ($1 million) is excluded from participating in this program. The application for a sales and use tax refund must be accompanied by an endorsement resolution from the local governing authority (city council or quorum court) that authorizes the refund of its local taxes. Payroll Income Tax Credit for Targeted Businesses

A cash rebate equal to 5% of eligible new payroll for up to 10 years A sales or income tax credit equal to 2%-8% of eligible investment