Is your manufacturing company on the cutting edge? It's important to keep pace with the competition, especially if you're trying to carve out a niche in a new marketplace.
Fortunately, federal tax law allows manufacturers to claim a generous tax credit for qualified research expenses. The credit generally offsets income tax liability on a dollar-for-dollar basis.
Now there's some extra tax incentive: The Inflation Reduction Act (IRA) expands the ability of qualified small businesses to use research credits to offset federal payroll tax instead of income tax.