Manufacturing tax
Greywood CPA plans and prepares taxes for manufacturers and distributors. The biggest issues are usually sales tax in the states you sell into, research credits for product and process development, equipment depreciation and, for exporters, IC-DISC planning. Every plan is prepared and reviewed by a senior CPA.
Since the Supreme Court's 2018 Wayfair decision, states can require sellers to collect sales tax based on their sales into the state, even without a physical presence. Distributors and manufacturers selling directly to customers in many states often have filing obligations they don't know about.
Last reviewed: November 2026
The federal research credit isn't only for labs. Manufacturers often qualify for designing new products, improving processes, building prototypes and tooling, and solving production problems through testing. Many states offer their own credits too. Federal rules for deducting research costs changed in 2025, and we apply the current rules to your return and document the qualifying work.
Machinery and equipment purchases can often be deducted largely in the year placed in service through bonus depreciation or Section 179, subject to the rules in effect and your income. Facility improvements may qualify for shorter lives. We plan purchase timing before year-end and keep book and tax depreciation reconciled for your lender and auditor.
Companies exporting U.S.-made products may benefit from an interest charge domestic international sales corporation (IC-DISC), which can convert part of export profits into qualified dividends taxed at lower rates for owners. It requires a separate entity and annual filings, so we model the benefit first.
Larger producers capitalize indirect costs into inventory under UNICAP; businesses under the small business gross receipts threshold are generally exempt. Some manufacturers benefit from LIFO in inflationary periods. We review the method that fits your size and margins. See inventory and costing.
Possibly. Since the 2018 Wayfair decision, states can require collection once your sales into the state pass their economic nexus threshold, even without a physical presence.
Often, yes. Designing new or improved products and processes, building prototypes and tooling, and testing to solve technical uncertainty can all qualify, if documented.
A separate entity that exporters of U.S.-made products can use to convert part of export profits into qualified dividends taxed at lower rates for owners. It requires annual filings and works best above a certain level of export sales.
When you need it anyway, timing the purchase can accelerate deductions through bonus depreciation or Section 179, depending on the rules in effect and your income.
We quote one fixed fee in writing before any work starts, based on the entities, states and credits involved.
Talk to us before year-end. A senior CPA will send a fixed-fee proposal within 1–3 business days.