FMC Technologies Fluid Control Division received backing from the Stephenville City Council Tuesday that could add up to significant savings for the local manufacturing facility.
The council approved an ordinance designating the facility as an enterprise zone and nominating the corporation for the Texas Enterprise Zone Program.
Scott Grisham, a representative of consulting firm Deloitte Tax LLP, said approving the ordinance will allow FMC to cash in on state sales and use tax refunds that would not impact city revenue or taxes.
No cost will be incurred by the city for supporting the program, Mayor Nancy Hunter said.
The Texas Enterprise Zone Program is an economic development incentive offered by the state every two years, with 105 applications into the program being approved, according to Cindy Winsett, controller with FMC.
The program "is an economic development tool for local communities to partner with the state of Texas to promote job creation and capital investment in economically distressed areas of the state," according to www.governor.state.tx.us.
If the maximum rebate is achieved, FMC could see a savings of $1.5 million over a five-year period.
Once complete, FMC estimates the expansion project will create 80-100 new jobs.
"We are thrilled to have FMC as a great community partner," Hunter said.
The multimillion dollar project will expand the current product line, a wide range of flowline equipment used in the oil and gas industry for distribution around the globe. FMC employs approximately 700 people in Stephenville.