Non-Profit Incentives

Offered at the discretion of the Director of Economic Development Commission.

The primary purpose of the Non-Profit Incentive Program is to encourage the location or expansion of national or regional non-profit headquarters in Arkansas.

Eligible non-profit organizations must create a payroll for new, full-time, permanent employees of at least $500,000 and pay an average wage in excess of 110 percent of the state or county average wage (whichever is less) in the county in which the organization locates or expands. In addition, the non-profit organization must receive 75 percent of its income from out-of-state sources.

If offered, this program provides an incentive payment (payroll rebate) equal to 4 percent of the payroll of the new, full-time, permanent employees for a period of up to five years.

In addition to the payroll rebate, this program also provides a sales and use tax refund for eligible projects that invest a minimum of $250,000. The refund is eligible for taxes paid on construction materials, and machinery and equipment associated with the approved project.

Rules

Organizations that have been approved by the Arkansas Secretary of State as having met the qualifications for a non-profit organization in Arkansas and which has also received a 501(c)(3), 501(c)(6), or 501(c)(9) designation from the United States Internal Revenue Service.

If you have any questions concerning the Non-Profit Incentive Program, please call Michael Almond at the Arkansas Economic Development Commission at 501-682-5277.

Click here for Non-Profit Incentive Final Rules 2009

Source: Arkansas Economic Development Commission