SPRINGDALE -- An expansion for Springdale company TruTrak Flight Systems is taking off.
City Council members voted 7-0 Tuesday night to participate in the tax refund program on behalf of TruTrak Flight Systems. Through the program, the sales and use tax TruTrak pays to the city during its expansion can be reimbursed, explained Scott Edmondson, vice president of economic development for the Springdale Chamber of Commerce.
On the web
• Arkansas Department of Economic Development
• Springdale Chamber of Commerce
• TruTrack Flight Systems
The state's Tax Back program provides sales and use tax refunded for companies making an investment of at least $100,000, according to information on the website of the Arkansas Economic Development Commission. Sales taxes on building material, machinery and equipment could be reimbursed at 5.5 percent, if itemized and presented to the commission.
TruTrak can make a similar appeal to Washington County, Edmondson said.
TruTrak makes autopilot systems to retrofit into classic airplanes, which are categorized as "experimental" by the Federal Aviation Administration, said Moss Foster said Tuesday afternoon. Foster is general manager of TruTrak.
More recently, the company has added systems for "certified" aircraft to its product line. A "certified" aircraft would be one with a brand name bought from a dealer -- a Cessna for example, Foster said.
TruTrak needs more space and employees to meet the needs of the new market, Foster said.
The company plans for a $1 million to $2 million expansion of 10,000 to 16,000 square feet at its facility at the Springdale Municipal Airport, although the project is still in the planning phase, Foster said.
"And we will add staff accordingly," he added. He said he expects about 10 jobs in the next year.
The rebates are available "to qualifying businesses that create new jobs as a result of construction, expansion or facility modernization projects in Arkansas," according to the AEDC site.
"But the only way a company can be part of this program is to piggy back on another program aimed at job creation by the AEDC," Edmondson added.
The Advantage Arkansas program provides a state income tax credit for companies creating jobs. The credit is based on the payroll for new, full-time employees hired as a result of the project, according to information from the AEDC.
The state's Tax Back and Advantage programs are a good incentive for companies to stay in Arkansas, Foster said. "It's keeping growth here. The area is becoming known for its aerospace technology."
NW News on 07/11/2018