Don't leave money on the table! This comprehensive
checklist will help you identify overlooked tax deductions and credits
that could save your manufacturing business thousands or even hundreds
of thousands of dollars annually. Use this guide to assess your
eligibility and take action on missed opportunities.
R&D Tax Credit
Innovation & Process Improvements
186% Deduction
or 10-20% Tax Credit
Developing new products or improving existing ones
Including modifications to meet customer specifications,
enhanced functionality, or improved performance
characteristics.
Potentially qualifies for significant R&D credits
Creating or enhancing manufacturing processes
Process improvements, automation development, quality
control enhancements, or efficiency optimizations.
Often overlooked but highly valuable
Experimenting with new materials or techniques
Testing alternative materials, developing new formulations,
or implementing novel manufacturing techniques.
Material R&D qualifies for credits
Developing custom software or automation systems
In-house development of manufacturing software, control
systems, or automation solutions.
Software development often qualifies
Prototype development and testing
Creating prototypes, conducting tests, and iterating designs
to resolve technical uncertainties.
Prototype costs typically qualify
Section 179 Equipment Expensing (US)
Immediate Equipment Write-offs
Up to $1.22M
Immediate Deduction (2024)
Manufacturing machinery and production equipment
CNC machines, presses, lathes, assembly equipment, and other
production machinery purchased in 2024.
100% immediate write-off available
Computer hardware and software
Business computers, servers, off-the-shelf software, and IT
infrastructure used in manufacturing operations.
Technology investments qualify
Office furniture and equipment
Desks, chairs, filing cabinets, and other office equipment
used for business purposes.
Often forgotten but qualifying
Business vehicles (with limitations)
Commercial vehicles, delivery trucks, and other business-use
vehicles, subject to specific limitations.
Partial deductions available
Equipment placed in service by December 31st
Ensuring all qualifying equipment is installed and
operational before year-end to claim the deduction.
Critical timing requirement
Bonus Depreciation (US)
Accelerated Asset Depreciation
60% in 2024
Phasing down annually
New qualifying property purchases
New machinery, equipment, and other qualifying assets that
exceed Section 179 limits.
60% immediate deduction in 2024
Used equipment purchases (if new to your business)
Previously owned equipment that hasn't been used in your
business before and meets other requirements.
Used equipment can qualify
Strategic timing of asset purchases
Planning major purchases to maximize bonus depreciation
benefits before the phase-out continues.
Act now - benefits decreasing
Section 179D Energy Efficiency (US)
Building Energy Improvements
Up to $5.00/sq ft
Energy Efficient Improvements
LED lighting system upgrades
Converting to energy-efficient LED lighting systems
throughout manufacturing facilities and offices.
High-impact energy savings
HVAC system improvements
Installing high-efficiency heating, ventilation, and air
conditioning systems or upgrading existing systems.
Major energy cost reductions
Building envelope enhancements
Improved insulation, energy-efficient windows, doors, and
roofing systems that reduce energy consumption.
Long-term energy savings
Energy management and control systems
Smart building controls, automated systems, and energy
monitoring technology that optimize energy usage.
Technology-driven efficiency
State & Local Manufacturing Incentives
Location-Specific Opportunities
Varies
By Location & Project
Property tax abatements or reductions
Local programs that reduce property taxes for manufacturing
facilities, equipment, or improvements.
Ongoing operational savings
Job creation and training tax credits
State incentives for hiring new employees, expanding
workforce, or investing in employee training programs.
Workforce development benefits
Investment and capital expenditure credits
State programs that provide tax credits for significant
capital investments in manufacturing equipment or
facilities.
Rewards for growth investments
Sales tax exemptions on manufacturing equipment
State exemptions from sales tax on machinery, equipment, and
materials used directly in manufacturing processes.
Immediate cost savings
Export and trade incentives
Programs supporting manufacturers engaged in international
trade or export activities.
Global competitiveness support