Business

Authority Resources for Businesses

Applied Research Grant Program

The Authority's Applied Research Grant Program is a (50:50) cash-matching effort to support applied research in science and engineering. (A match of $2 from the state is available for every $1 from an Arkansas business with 50 or fewer employees.) The goal of the Applied Research Grant Program is to stimulate the transfer of science and technology in Arkansas by enhancing opportunities for research partnerships between Arkansas colleges and universities and private industries.

Research & Development Tax Credit Program

The Authority's Research & Development Tax Credit Program allows credits against a taxpayer's Arkansas state income tax for making certain qualified research expenditures as well as certain donations or sales below cost of new machinery and equipment to a qualified research program.

Seed Capital Investment

The Authority's Seed Capital Investment Program (SCIP) can provide working capital to help support the initial capitalization or expansion of technology-based companies located in Arkansas. The program can provide working capital up to $500,000 of the company's total financing needs. Investments made by the SCIP fund can be repaid through a variety of instruments, including direct loans, participations and royalties.

Technology Development Program

The Authority's Technology Development Program provides royalty financing for qualified projects possessing a well developed, comprehensive project plan, and which utilizes the benefits of science and technology to provide economic and employment growth potential in Arkansas. The maximum investment is $ 50,000 with terms negotiated on an individual basis. These terms are a maximum five percent of net sales for a maximum term of 10 years. Qualified energy-related Technology Development projects are funded separately.

Technology Transfer Assistance Grant Program

The Authority's Technology Transfer Assistance Grant Program provides limited financial support for the transfer and deployment of innovative technology. The Authority will fund up to $3,750 of costs associated with transferring new or existing technology from a qualified applicant -- such as a public or private enterprise, laboratory, college or university -- to an enterprise based in Arkansas. Up to $5,000 of total project costs will be considered, with the first $2,500 funded by the Authority; the remaining $2,500 is cost-shared equally (50:50) between the Authority and the enterprise. Each enterprise is eligible to receive assistance for two technology transfer projects per year. Projects are evaluated on a competitive basis.

Centers for Applied Technology

The Arkansas Science & Technology Authority's Centers for Applied Technology Program is a competitive effort to support applied technology in areas of advanced materials and manufacturing systems; agriculture, food and environmental sciences; biotechnology, bioengineering and life sciences; and, information technology. The benefits of establishing a center is that an income tax credit equal to 33% of qualified research expenditures may be allowed to an Arkansas taxpayer who invests in an active project under research and development programs offered by the Arkansas Science and Technology Authority.

R & D Tax Incentives

Tax credits are intended to provide incentives for university-based research, in-house research of several kinds, and research and development in start-up, technology-based enterprises. It is important for the applicant to understand the different incentives and to select the most appropriate for the eligible research and development activity.