As a business owner, you understand the importance of continuous investment in your manufacturing business. But, as the manufacturing landscape becomes increasingly competitive and globally inclusive, you may ask yourself: “Where can I find the extra capital I need to drive my business forward?” One relatively straightforward way to do this is to utilize the research and development (R&D) tax credit, a dollar-for-dollar tax credit that may be applied against taxes for the generating business.
The Tax Cuts and Jobs (TCJA) has many effects and the impacts felt vary from business to business, depending on the nature of the business as well the structure. Manufacturers and distributors will most likely be impacted by a lower tax rate if they are a corporation or an individual (if they have stake in a pass-through entity). They will also be impacted by the changes in alternative minimum tax (AMT), as well as the expansion of IRS Sec. 179 and bonus depreciation for the first year.