McKee Bakery will pay no taxes, except for school assessments, for the first 12 years of a 15-year PILOT tax abatement agreement.
The pact was agreed by county officials as incentive for McKee to put a $505 million investment at its Collegedale and Apison sites.
County officials said it is the largest investment in the county since Volkswagen.
Steve Hiatt of the Chamber of Commerce said local officials "had some very steep competition" from Gentry, Ark., where McKee has another large facility for making Little Debbies and other popular snack cakes.
In the end, McKee management chose its longtime home town.
McKee will pay 25 percent of taxes due in year 13, 50 percent in year 14 and 75 percent in year 15.
Through the 15 years, it will pay almost $11 million in school taxes on the new investment.
There will be 125 new jobs and 482 by the end of the 15 years. Mr. Hiatt said he expects McKee will exceed those numbers.
Kurt Faires, attorney for McKee, said the company will provide the county with annual job growth numbers.