Plans by Systems Fab & Machine to expand its main shop in El Dorado and add dozens of new jobs have gotten more support from local government officials.
The El Dorado City Council recently passed a resolution endorsing Systems' participation in the state's Tax Back Program, which allows the Arkansas Department of Finance and Administration to offer local sales and use tax refunds on the purchase of building materials and taxable machinery and equipment to eligible businesses.
Systems has received approval Arkansas Economic Development Commission to participate in the Advantage Arkansas Program, an income tax credit incentive that is earned each year for a period of five years.
The income tax credit cannot offset more than 50% of a business' income tax liability in any one year and may be carried forward for nine years beyond the first tax year in which the credit was earned.
More specifically, Systems requested tax benefits that will accrue from construction.
Last month, the company announced plans to expand its main fabrication and machine campus in El Dorado, citing business growth that is centered around steel production industry in the U.S.
Systems specializes in fabricating, machining and steel detailing and drafting.
As a part of the expansion project, Systems, located at 151 Pickering Drive, is purchasing 47 acres of land that is adjacent to its shop for additional space to boost production of its patented Spray-Cooled equipment.
The equipment is used to prevent Electric Arc Furnaces from melting while producing new liquid steel.
Work on the expansion project was already underway when Systems announced it last month, as were efforts to hire 60 new employees, including welders, fitters and fabricators.
On June 9, the El Dorado City Council joined the Union County Quorum in endorsing Systems' participation in the state's tax-back program.
The quorum court gave its stamp of approval on May 19.
Local government endorsements are one of several criteria businesses must meet to be eligible for state's tax-back incentive program.
In 2021 and 2020, the city council and quorum court, respectively, similarly backed a request from Continental Carbonic Products, Inc., (CCPI) to open a liquid CO2 and dry ice manufacturing facility in El Dorado.
Systems expects to complete its expansion project by the first quarter of 2023.