Arkansas lawmakers passed HB1832, the Arkansas New Markets Tax Jobs Act, which was created to help companies that meet certain criteria receive financing at below-market rates. The Act encourages private sector investment in small businesses, particularly in low-income regions, by providing tax credits tied to private capital investments.
Arkansas Capital Corporation has applied to participate and is expecting to receive a sizable Quesportion of the $166 million state allocation. Arkansas Capital is now actively seeking projects eligible for investment.
Arkansas Capital partners with an organization’s local community bank and works with developers to identify and access alternative project financing options such as the New Markets Tax Credits in a joint effort to create successful ventures for Arkansas.
Companies that are planning to expand and create or retain jobs or companies that are facing financial challenges, are encouraged to contact Arkansas Capital Corporation to see if these New Market Tax allocations can be beneficial to their organization.
The Arkansas New Markets Tax Credit Allocation:
- Allows the Arkansas Economic Development Commission authority to review applications and award state new market tax credits allocation of $166 million starting July 2013
- Any allocation received can be used by the applicant to support formation of a pool of capital for eligible businesses located in qualified census tracts.
Companies must have a job creation or retention aspect and show a positive economic impact to the state’s economy through an econometric model.