Reinvest Yesterday’s Manufacturing Tax Credits to Support Tomorrow’s Big Idea
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Did you know that R&D Tax Credits are among the three most overlooked tax credits and incentives for manufacturers?
Don’t leave money on the table. Boost your company’s position in the global market by using manufacturing tax credits to streamline processes and pay for needed upgrades.
Think About What’s Next
Traditionally, large enterprises have been most likely to leverage the R&D Tax Credit. But regulatory changes have made it easier than ever for small and mid-sized manufacturers to take advantage. You’re eligible for the R&D Tax Credit if you’ve improved your existing products, developed new products or advanced your plant processes (like implementing an ERP platform or applying methodologies such as Lean and Six Sigma).
While some companies rely on their tax credits as a source of cash flow, others wisely reinvest in research or operations. Think about your organization’s goals and how you can use your credits to reach them. What types of tools, resources and personnel do you need to take your organization to the next level?
Keep ROI Top of Mind
Consider every investment decision through the lens of how it will impact your bottom line. Prioritize moves that help you stay ahead of the latest trends in your industry. As a manufacturer, consider the following investment areas:
1. The Industrial Internet of Things (IIoT)
The IIoT is revolutionizing the manufacturing industry. By investing in the latest business-oriented devices and machines, you’ll enable your team to make decisions based on real-time data available on the shop floor. This greater visibility into your processes and organization will equip you to make the most of those processes.
2. 3-D Printing
In recent years, 3-D printing has rapidly advanced. Now, manufacturers can use the latest printers to produce items in a variety of plastics and metals. While this technology may not yet be suitable for full-scale production, it’s a valuable investment for designing and testing prototypes.
As time goes on, industrial robots are becoming smaller, easier to program and more affordable. This technology will empower you to improve product quality, worker safety and accuracy — while reducing production costs and human error. By investing in automation, you’ll give your organization a competitive advantage in the marketplace.
4. ERP Systems
Do you have a modern ERP system in place? If not, your organization is likely wasting valuable time and resources on managing a variety of back-office functions related to human resources, services and technology. Leverage your tax credit earnings here to gain better insights into your analytics and improve efficiencies throughout your company.
Your employees are the lifeblood of your organization. You might need to reinvest your tax credit earnings into finding employees with the right skills. And don’t forget about professional development for your current team to keep your organization ahead of the curve.
In order to be successful, you must have powerful outreach initiatives. By investing your credits into producing valuable collateral on a variety of networks and platforms, you will reach new prospects and gain new clients.
So, how will you reinvest your manufacturing tax credits for growth?