JPs support Systems Fab & Machine participation in Tax Back program

The Union County Quorum Court on Thursday approved a local business’s participation in the state’s Tax Back program.

Justices of the Peace voted unanimously to support Systems Fab & Machine Inc.’s participation in the program, a requirement for businesses seeking the benefit.

The program refunds sales and use taxes back to participating businesses for building materials, machinery and equipment whose purchase will lead to the creation of new jobs in the community the company is based in, according to the Arkansas Economic Development Commission (AEDC).

The state requires that businesses seeking to participate in the program be endorsed by local governments.

According to a press release from Systems Fab & Machine, Inc., the AEDC has already approved its participation in the Arkansas Advantage program, an income tax credit program companies can participate in based on the hiring of new employees at an average hourly wage of $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 in the steel industry as more and more manufacturing jobs are returning to the country. We are excited that The Systems Group decided to expand their operations here in El Dorado and that they have found the people and business climate here that will enable them to meet the growing demands of their clients,” the release states.

El Dorado-Union County Chamber of Commerce President and CEO Bill Luther attended Thursday’s meeting of the Quorum Court to answer any questions about the company’s participation in the program.

District 5 JP Carolyn Jones asked how many employees would work at the new facility; Luther said 40 new workers would be hired in the expansion.

District 1 JP Mike Dumas noted that the expansion is off Ponderosa Drive. Systems Fab & Machine Inc.’s original location is at 151 Pickering Dr., directly adjacent to 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 that are in high demand throughout the state that can lead to lifelong career opportunities. We look forward to working with The Systems Group as they continue to grow,” the company’s release concludes.

Earlier this year, JPs backed Resolute Forest Product’s participation in the Tax Back program.