AR HB1532

Creates an income tax exemption for businesses that locate or relocate their corporate headquarters to Arkansas counties with populations under 40,000 on or after the effective date.

Qualifying businesses must have had no location in Arkansas during the 6 years before relocation and must employ fewer than 100 employees in the state.

The exemption applies to the entire net income of eligible businesses and may be claimed for up to 3 years.

Businesses must remain at the new location for at least 6 years; if they relocate to another county or state within 6 years of becoming eligible, they must repay all previously exempted income taxes.

The exemption is effective for tax years beginning on and after January 1, 2019.