The manufacturing incentives benefits is a federal program designed for companies that perform manufacturing in the United States. This program is listed under Section 41 of the Internal Revenue Code(IRC) and continues on an annual basis. This is an engineering based program that focuses on company’s operations and processes in order to determine their qualification for incentives. The manufacturing incentives benefit provides an avenue to receive a tax refund back from prior years while also reducing current taxable income on dollar to dollar basis.

Who Qualifies for Manufacturing Incentives

Companies with an annual payroll of one million or more, meet IRS Product or Process requirement, follow link for details Product and Process Guidelines .  Profitable in at least 1 of the last 3 years or will be profitable in the current year.

Information Needed for Manufacturing Incentive

  • W2 tax report for all employees and job description of each employee
  • Tax returns for the past three years of the corporation if a C corporation
  • Tax return of all partners or member’s if company files taxes as entity where the profits are passed through to personal returns