Manufacturing Tax Incentives refer to various tax benefits designed to encourage investment and growth in the manufacturing sector. These incentives can take several forms, including tax credits, deductions, exemptions, and preferential tax rates that reduce the overall tax burden on manufacturing businesses.
For example, a common type of incentive is the Investment Tax Credit (ITC), which allows manufacturers to deduct a percentage of the cost of qualifying investments in equipment and facilities from their taxable income. Another example is sales tax exemptions on raw materials and machinery used in the manufacturing process, which lowers upfront costs for manufacturers.
Overall, these incentives aim to stimulate economic development, promote job creation, and enhance competitiveness within the manufacturing industry.
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