The Arkansas Tourism Development Act provides state sales and use tax credits and income tax credits to businesses initiating approved tourism attraction projects.
Click here for Final Tourism Rules and Regulations 2009
Sales tax credits shall be determined in accordance with the following criteria:
- Eligible minimum project costs must be $1 million, except in high unemployment counties,* where it is $500,000.
- The sales tax credits are calculated based upon 15 percent of eligible project cost for projects spending more than $1 million; credits are 25 percent of eligible project cost for the projects in high unemployment counties.*
- The sales tax credit may be applied against the business's increased sales tax liability that results from the project.
- Other review criteria may be requested by the Arkansas Economic Development Commission to determine whether the tourism attraction project meets the intent of the Act.
Additionally, eligible businesses may receive a state income tax credit equal to 4 percent of the annual payroll of each new, full-time, permanent employee.
The income tax credits begin in the year in which the new employees are hired. Any unused portion of the credit may be carried forward against corporate income tax for the succeeding nine years.
* The following Arkansas counties are designated as "high unemployment" counties based upon the 2008 statewide annual labor force statistics compiled by the Arkansas Department of Workforce Services: Arkansas, Chicot, Clay, Desha, Drew, Jackson, Marion, Mississippi and Woodruff.