AR SB771

Creates income tax exemption for businesses in targeted counties beginning January 1, 2012, and ending December 31, 2027, if they expand workforce by 25% or establish new operations with at least 25 full-time employees working 40+ hours per week.

Extends income tax exemption to December 31, 2037 for businesses locating in counties with no new major business (25+ employees) in more than 5 years.

Establishes sales and use tax exemption for tangible personal property and services sold to eligible companies in targeted counties during the same timeframe, with same extended period for underserved counties.

Requires businesses to demonstrate location in counties with either poverty rate 50% above state average or unemployment rate 135% or more of state average, and no major new business opened in prior 2 years.

Mandates Arkansas Economic Development Commission approval process and certification by Director of Department of Finance and Administration before tax exemptions take effect.