July is a month that freedom, including the pursuit of life, liberty and happiness is on the minds of many. For small business owners, these pursuits are often closely intertwined. Small- to medium-sized manufacturers understand how smart and calculated choices throughout the process can allow for the creation of innovative solutions and a catalyst for more business.

Innovation and Expansion

A frequently overlooked option for growing a manufacturing business is the R&D tax credit. Considered a game-changer for manufacturers of all sizes, new changes make the R&D tax credit permanent and could prove a significant boost toward business expansion. As one of the largest tax credits provided to manufacturers by the federal government, some wonder why more manufacturers aren’t taking advantage of the tax credit program. A recent article on the tax incentives, published in areadevelopment.com, suggested outdated perceptions and misunderstandings of the benefits could be to blame. According to the author, new changes in the law mean more manufacturers can benefit from the R&D tax credit.

Secondary Manufacturing

One example of this is the design of new parts by a smaller manufacturer for use by a larger manufacturer. Through the developing and prototyping process, the smaller manufacturer has the ability to improve the performance of a new or existing part, providing a possible expansion of the manufacturer’s existing operations.

Eligible Tax Credit Opportunities

Developing products using CAD tools

Improving existing products

Designing and developing tooling and equipment

Innovating existing equipment designs

Modeling and prototyping using 3D technology

Improving operational processes

Integrating improvements in performance and processes

Optimizing and reducing time in manufacturing

Accelerating yields and quality

Power to Smaller Manufacturers

Thankfully, recent changes now make it easier for small and medium sized manufacturers to take advantage of the R&D tax credit, and a December 2015 tax law provides the necessary permanence of the law. This is particularly important when you consider the impact small manufacturers make on innovation within the manufacturing space.

If you’re in the market for a deburring solution, talk to the experts at The Cleveland Deburring Machine Company.  They can provide a custom solution for gears, sprockets, aerospace and defense, power transmission, powdered metals, fluid power and one-off custom applications. Our no-charge evaluation includes a detailed report and process description in as little as 3 to 5 business days. Contact CDMC today for a deburring solution that’s right for you.