Applied Process Fort Smith facility approved for ‘tax back’ program

On Tuesday (June 5), the Fort Smith Board of Directors approved a resolution supporting Applied Process Fort Smith, LLC’s entry into the state “Tax Back” program authorized by the Consolidated Incentive Act of 2003.

The program allows for new or expanding businesses to request refunds of sales taxes paid on building materials, new equipment, and other eligible expenses incurred due to construction and expansion.

The Tax Back program is a state and local sales tax refund incentive to attract business growth or expansion to Arkansas. The incentive applies to capital purchases associated with construction of new facilities or expansion of existing facilities (such as equipment or building materials) and does not apply to ongoing purchases. The majority of the incentive will be derived from the state sales tax rate. However, in order to participate in the program, the local governments must also agree to the sales tax refund.

Applied Process has plans for a 51,000-square foot plant that will be an expansion of the company’s austempering heat treatment processing operations based in Livonia, Mich. It will be located at 5400 N. 6th St. and deliver to customers in the automotive, agriculture, aerospace, heavy truck, railroad, mining, and military industries in the midwestern and southern US.

The company’s upfront investment will be $7.75 million for the new facility, including $2.751 million to purchase and renovate the existing property and buildings and $4.999 million for industrial equipment. It will add 19 jobs to the region with an average wage of $23.23 per hour.