With the start of another tax season, businesses in the automation and manufacturing industries are forced to evaluate how persisting economic and industry trends have impacted their profit margins and viability.
The global chip shortage is continuing to hamper enterprises worldwide, ranging from vehicle manufacturers to mobile phone makers, as well as other consumer, business, and industrial producers.
With a seemingly endless list of qualifying activities, including scale-up process techniques, along with compatibility and stability testing, manufacturing is consistently one of the top industries claiming the Research and Development Tax Credit (R&D Credit).
The Employee Retention Credit (ERC) originally was introduced as part of the Coronavirus Aid, Relief, and Economic Security (CARES) Act in 2020, and since the passing of the Consolidated Appropriations Act of 2021 in December 2020, this provision has been expanded significantly to reward more business owners for keeping employees on the payroll throughout the pandemic.
Navigating the pandemic for a year has been no easy feat for U.S. manufacturers. 94% of Fortune 1000 companies have experienced supply chain disruptions due to the coronavirus, many of which linger to this day.
President Biden recently made an infrastructure bill counteroffer to Senate Republicans, lowering the total proposed cost from $2.3 trillion to $1.7 trillion. However, Republicans are still unsatisfied, releasing on Thursday a proposal for only $257 billion in infrastructure spending.
Last December Congress released the Consolidated Appropriations Act of 2021 which provided major tax breaks for companies that have found ways to come together with their teams to embody America’s commitment to innovation in the midst of the pandemic.
Do you remember when most product labels said “Made in the USA”? For many decades the U.S. dominated manufacturing, both at home and worldwide, but globalization is relentless.
Chairman Wyden, Ranking Member Crapo, and distinguished Members of the Committee, thank you very much for the opportunity to submit written comments in response to your important hearing to discuss the effect of the U.S. tax code on domestic manufacturing.
Although we’re several weeks into the new year, many of us are still in the process of recovering from 2020—picking ourselves up, dusting ourselves off, and trying to get our bearings before dealing with 2021.