Council recommends company for state tax rebate program

SPRINGDALE — The City Council on Tuesday night recommended Now Diagnostics for a state program providing sales tax rebates for companies expanding their operations in the state.

Now Diagnostics awaits approval of a device that quickly determines if antibodies for covid-19 are present in a patient, said Kevin Clark, the company’s chief economic officer. Clark said the presence of covid-19 antibodies indicate the person has or had the virus.

The company’s $5.3 million expansion on Shipley Road will bring to the city about 70 full-time jobs, paying $20 an hour, said Scott Edmondson, vice president of economic development for the Springdale Chamber of Commerce.

The expansion will provide a place for scaled-up manufacturing of the new equipment, Clark said.

The medical devices provide quick results of blood tests — very similar to blood glucose monitors in form and function, he said. The tests can be completed in physicians’ offices and hospitals.

Clark said the European Commission this summer approved use of the devices in 28 European Union countries, and Now Diagnostics is shipping them to Europe.

A “CE” marking indicates conformity with health,

safety, and environmental protection standards for products sold within the European Economic Area, according to the commission’s website.

New Diagnostics also has submitted its product to the Federal Drug Administration and awaits approval, Clark said.

“We’ve started shipping products to Europe, and we are ready to go when we get approval here,” he said.

The company makes similar devices checking for pregnancy. The company also is working to develop testing devices for sexually transmitted diseases, food intolerance, other infectious diseases and more, according to its website

The state offers a variety of incentives including tax refunds and tax credits based on a company’s plan. The Arkansas Economic Development Commission looks at several things such as wages and how many jobs a proposal will create.

Companies can apply to the state to file for rebates of sales taxes they spend on material and equipment included in expansions, Edmondson explained.

For a business to be eligible for the investment tax incentives, the governing body of the municipality in which the business is based must pass an ordinance to support the company’s participation, he said.

He said the Washington County Quorum Court also approved Now Diagnostics’ participation in the program. The company pays sales taxes to both the city and county and was eligible for rebates from both, he said.