The Union County Quorum Court on Thursday approved a local business’s participation in the state’s tax rebate program.
The justices of the peace voted unanimously in favor of Systems Fab & Machine Inc.’s participation in the program, a requirement for companies wishing to benefit from it.
The program reimburses sales and use taxes to participating businesses for construction materials, machinery and equipment whose purchase will create new jobs in the community in which the business is based, according to the Commission Arkansas Economic Development (AEDC).
The state requires companies wishing to participate in the program to be approved by local governments.
According to a press release from Systems Fab & Machine, Inc., AEDC has already approved its participation in the ArkansasAdvantage program, a tax credit program that companies can participate in based on hiring new employees at a salary average hourly $14.11.
The press release also announced the expansion of the company’s operations in El Dorado.
“The Systems Group continues to build on the momentum of the steel industry as more manufacturing jobs return to the country. We are delighted that The Systems Group has decided to expand its operations here in El Dorado. and that they have found the people and business climate here that will allow them to meet the growing demands of their customers,” the statement said.
El Dorado-Union County Chamber of Commerce President and CEO Bill Luther attended Thursday’s Quorum Court meeting to answer any questions regarding the company’s participation in the program.
District 5 JP Carolyn Jones asked how many employees would work in the new facility; Luther said 40 new workers would be hired as part of the expansion.
District 1 JP Mike Dumas noted the expansion is off Ponderosa Drive. Systems Fab & Machine Inc.’s original location is at 151 Pickering Dr., just off Ponderosa Drive.
“The Systems Group is a great example of why we need to invest more in our skilled workforce. The new jobs being created in El Dorado are for welders, fitters and fabricators – jobs in high demand statewide that can lead to lifelong career opportunities. We look forward to working with The Systems Group as they continue to grow,” the company statement concludes.
Earlier this year, JP supported Resolute Forest Products’ participation in the Tax Back program.