The 2003 Arkansas General Assembly enacted the Arkansas Capital Development Company Act as an incentive for economic development in Arkansas. Part of that act makes provision for a State of Arkansas income tax credit, awarded for select qualified investments in approved projects.

Purpose of the Tax Incentive

1. Promote, stimulate, develop and advance the business prosperity and economic welfare of the State of Arkansas and its citizens
2. Assist in the growth and expansion of existing business and industry in Arkansas
3. Encourage and assist in the location of new business and industry to Arkansas
4. Stimulate and assist in the expansion of all kinds of business activity which will tend to promote the business development and maintain the economic stability of the State, provide maximum opportunities for employment, encourage thrift, and improve the standard of living of the citizens of this State by the promotion and advancement of cultural, industrial, technological, scientific, commercial, agricultural, knowledge-based industry, venture capital, biotechnology, economic, and recreational development in this State

What is the Commerce Capital Development Company, LLC?

Commerce Capital Development Company (CCDC) was formed under the Arkansas Capital Development Company Act and is an affiliate of the Arkansas Capital Corporation Group. The function of CCDC is to market the tax incentive program, review applicants, perform due diligence regarding the applicants' character, weigh the benefits to the state generated by a proposed investment, examine why the tax credit is needed as an incentive, and to track the allocation and utilization of the tax credit throughout its life. CCDC has an eight member governing board that ultimately determines whether to grant or deny the tax credit request. The governing board is comprised of five at-large members and the heads of the Arkansas Department of Economic Development, Arkansas Development Finance Authority, and the Arkansas Science & Technology Authority.

The issuance of a tax incentive by CCDC does not in any way indicate, directly or indirectly, that CCDC has endorsed the financial viability of a proposed project. CCDC is merely the conduit by which investors and businesses will have access to the tax credit. All participants in any transaction must be made aware of this fact to the satisfaction of CCDC.