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Natural State Initiative Economic Opportunity Zones

The Natural State Initiative Economic Opportunity Zones were established in 2023 to encourage investment and enhance the visitor experience in four Arkansas State Parks.  In addition to the creation of these zones, the Arkansas Tourism Development Incentive Program was amended to establish higher sales and income tax credits to businesses opening or expanding in these zones.

The four zones:

1.  The area located within the boundaries of Pinnacle Mountain State Park, plus the area extending one-eighth (1/8th) of a mile immediately adjacent to the outside boundary of the park.

2.  The area located within the boundaries of Petit Jean State Park, plus the area extending one-eighth (1/8th) of a mile immediately adjacent to the outside boundary of the park.

3.  The area located within the boundaries of Delta Heritage Trail State Park, plus the area extending one-eighth (1/8th) of a mile immediately adjacent to the outside boundary of the park.

4.  The area located within the boundaries of Queen Wilhelmina State Park, plus the area extending one-eighth (1/8th) of a mile immediately adjacent to the outside boundary of the park.

Arkansas Tourism Development Incentive Program

To encourage growth in Arkansas’ outdoor recreation and tourism industries, the Tourism Development Incentive Program was created. To stimulate expansion of these industries, economic incentives are offered to qualified private development projects in the form of sales and income tax credits. Since the intent, in part, is to generate additional tourist traffic to Arkansas, each proposed project must develop a marketing plan that targets at least 25% of its visitors from out of state, meet other requirements, and submit a completed application prior to incurring any project costs.

Arkansas Tourism Development Act Rules

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% of eligible project cost for projects spending more than $1 million; credits are 25% 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 Arkansas Economic Development Commission (AEDC) to determine whether the tourism attraction project meets the intent of the Act.
• If the project locates in one of the four Natural State Initiative Opportunity Zones, the sales and use tax credits shall be determined in accordance with the following criteria:
  • Eligible minimum project costs must be $500,000, except in high unemployment counties* where it is 250,000.
  • The sales tax credits are calculated based upon 15% of eligible project cost for projects spending more than $500,000; credits are 25% of eligible project cost for the projects in high unemployment counties.*
    
    *Counties designated as ‘high unemployment counties’ in FY’24 are as follows: Ashley, Bradley, Chicot, Desha, Izard, Jackson, Jefferson, Mississippi, Phillips.

Income tax credits shall be determined in accordance with the following criteria:

• This program offers an Arkansas income tax credit equal to 4% of the payroll of each new full-time permanent employee for a period of 5 years from the effective date of the financial incentive agreement.

Eligible projects may qualify for incentive programs, such as the Tourism Development Incentive Program below. For more information, contact Katherine Andrews with the Office of Outdoor Recreation at 501-682-6829.

Opportunity to Provide Quality Guest Services

Concessionaire opportunities within Arkansas State parks provide private businesses the chance to offer a variety of goods and services to park visitors, enhancing the overall park experience. Private partners offer the ability of state parks to broaden and enhance the potential offerings within the parks. This not only benefits the parks themselves, but also the communities surrounding the parks in quality services that better the park experience and quality of life.

Active State Park Opportunities Open for Proposals

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Active State Park Opportunities Not Currently Open for Proposals

Delta Heritage Trail State Park

Queen Wilhelmina State Park

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