Arkansas CREATE Rebate Program
Arkansas Economic Development Commission (AEDC)
3.9%-5% of AR payroll, 10 yrs
Arkansas CREATE payroll rebate — 3.9%–5.0% for new jobs
Arkansas's primary economic development incentive provides payroll rebates to manufacturers and targeted industry employers creating new full-time jobs in Arkansas. CREATE (Creating Real Economic Activity Through Employment) pays a tiered rebate of 3.9%–5.0% of new payroll for up to 10 years, depending on payroll size and project characteristics. Technology enterprises paying at least 175% of the state or county average wage qualify for the top 5.0% tier. Direct cash payments — no Arkansas income tax liability required. Requires minimum 10 new full-time jobs, a minimum new annual payroll of $2,000,000 within 24 months, and employer-sponsored health insurance.
- Funding type
- Grant
- Level
- State
- Amount range
- $20,000
- Realistic amount
- A typical Arkansas manufacturing expansion with 25 new jobs at $45,000 average wage receives approximately $43,900/year…
- Deadline
- Rolling — applications accepted year-round. Apply before hiring new qualifying employees.
- Status
- active
- States
- AR
- Payment model
- post award
Who qualifies
- Create minimum 10 net new full-time jobs in Arkansas (full-time = 30+ hours/week with benefits in AR statute)
- New jobs must pay at or above the lesser of: the county average wage or $40,000 annual wage
- Must provide employer-sponsored health insurance with employer contributing at least 50% of premium
- Business must be in an approved industry sector (manufacturing, distribution, office operations, data centers, and other targeted industries)
- Must generate at least $2,000,000 in new annual payroll within 24 months of approval
- Must obtain AEDC pre-approval before hiring qualifying new employees
- Company's new AR payroll must be subject to Arkansas withholding
- Technology enterprises paying at least 175% of the state or county average wage may qualify for the 5.0% rebate tier
Hard requirements
- Must be incorporated
What it covers
Eligible expenses
- Rebates are unrestricted cash payments based on qualifying new AR employee payroll
- No expense categorization required — rebate is a percentage of verified payroll
Ineligible expenses
- Wages for employees transferred from another Arkansas location
- Part-time employee wages (under 30 hours/week)
- Jobs without employer-sponsored health insurance
- Wages below the applicable county average or $40,000 threshold
- Retail trade or food service payroll (excluded sectors)
How to apply
-
1
Contact AEDC and confirm sector eligibility
Contact Arkansas Economic Development Commission to confirm your industry qualifies and get the current application materials. AEDC can provide a preliminary estimate of your annual rebate.
~5 hrs
-
2
Submit CREATE application to AEDC
Complete the CREATE application with: company profile, NAICS code, Arkansas facility description, projected new job count and wages, health insurance plan documentation, and timeline for hiring.
~5 hrs
-
3
Receive AEDC approval
AEDC reviews application and issues approval (typically 30–45 business days). Approval specifies the rebate percentage, qualifying wage floor, job count commitment, and 10-year program period start date.
~5 hrs
-
4
Hire qualifying employees and file quarterly reports
Hire qualifying new Arkansas employees after approval. Each quarter, submit payroll certification to AEDC documenting qualifying new employee wages and health benefit coverage. AEDC issues cash payment within 60 days of each filing.
~5 hrs
Pre-approval is mandatory — you cannot count employees hired before the AEDC approval date. The health insurance employer-contribution requirement (50%+ of premium) is often the forgotten eligibility gate. Budget 30–45 business days for approval before your planned hiring start date.
Deadline & timing
AEDC approval must be obtained before hiring the new qualifying employees — pre-approval is required. Applications are reviewed within 30–45 business days. Quarterly payroll certification required to receive each payment.
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Last reviewed 2026. GrantCompass is an independent funding-discovery tool and is not affiliated with any government agency. Always confirm details on the official program page.