Value Frozen Foods, Inc. was recently able to save thousands of dollars with help from The Texas Manufacturing Assistance Center (TMAC).
TMAC - which is part of The University of Texas-Pan American Center for Entrepreneurship and Economic Development (CEED) - conducted a survey that helped the local food company qualify for a state tax exemption.
The Texas state law allows manufacturers to apply for tax exemption for utilities directly used in manufacturing, processing or fabricating on personal property.
"TMAC helped us by conducting a survey that has allowed us to exempt 90 percent of the electricity costs we use on sales taxes," said Ralph Smith, plant manager.
The survey's purpose was to list the facilities and equipment used in the manufacturing process and document the energy used.
TMAC representatives also analyzed the utility bills during the time the survey was conducted. As a result of the study, the company has saved more than $52,000 in state sales taxes.
TMAC representatives, along with Congressman Rubén Hinojosa (TX-15) were given a tour of the facility and spoke to employees and encouraged them to continue working hard in the delta area.
"I thank UTPA and TMAC for helping this plant save money because not enough funding has been given to the delta area," Hinojosa said.
Value Frozen Foods, Inc. is a division of Patterson Foods, Inc. and is located in Monte Alto, a small community about 30 miles north of the Mexican border. The plant at its peak season has 400 employees and is the largest employer in the area.
TMAC exists to enhance the competitive position of the state's manufacturing sector. TMAC's manufacturing professionals work with a wide range of industrial firms, delivering training, providing technical assistance and implementing best business practices.
For more information about TMAC, call 956/316-7011.