Equity Investment Tax Credit (EITC)

The Equity Investment Tax Credit (EITC) is AEDC's investor-side incentive for new technology-based businesses in Arkansas. It gives the investor a 33 1/3% state income tax credit on eligible equity, and AEDC approval is required before the credit is used or sold. The program is built around technology companies that pay wages above the state or county average. The credit can offset up to 50% of annual Arkansas income tax liability and carries forward for nine years. It is available on a rolling basis and is meant for investors, not startups, so the business receiving the money is not the direct claimant. That structure matters because the tax benefit is tied to the capital provider's tax position, which can unlock a deal when cash equity alone is not enough. Within AEDC's broader incentive set, EITC is the clearest fit for an investor backing a qualifying Arkansas tech start-up that already meets the wage test. Its transferable feature is unusual, and that makes it more flexible than a plain nontransferable credit when the investor needs to realize value quickly.

Each grant below is a distinct funding opportunity with its own eligibility, scope, and deliverables.