City supports local businesses for tax rebate program

Systems Fab & Machine’s plans to expand its main store in El Dorado and add dozens of new jobs have received more support from local authorities.

The El Dorado City Council recently passed a resolution approving Systems’ participation in the state’s tax rebate program, which allows the Arkansas Department of Finance and Government to offer local sales and to use tax refunds on the purchase of building materials and taxable machinery and equipment to eligible persons. companies.

Systems has received approval from the Arkansas Economic Development Commission to participate in the Arkansas Advantage Program, an income tax credit incentive that is earned annually for a five-year period.

The income tax credit cannot offset more than 50% of a company’s income tax in a year and can be carried forward for nine years beyond the first tax year in which the credit was earned.

Specifically, Systems requested tax benefits that will flow from the construction.

Last month, the company announced plans to expand its main manufacturing and machinery campus in El Dorado, citing business growth centered on the U.S. steelmaking industry.

Systems specializes in fabricating, machining and drafting and drawing steel.

As part of the expansion project, Systems, located at 151 Pickering Drive, is purchasing 47 acres of land 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 when 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 approving Systems’ participation in the state’s tax rebate program.

The quorum court gave its approval on May 19.

Local government endorsements are one of many criteria businesses must meet to be eligible for the state tax incentive program.

In 2021 and 2020, the City Council and Quorum Court, respectively, also supported an application by Continental Carbonic Products, Inc., (CICC) to open a liquid CO2 and dry ice manufacturing plant in El Dorado.

Systems expects to complete its expansion project by the first quarter of 2023.