Manufacturing – Page 6 – Swanson Reed | Specialist R&D Tax Advisors

Invent and Manufacture in America Act: the bipartisan, bicameral bill that could change the landscape of R&D Tax

Since 2000, the United States has lost over five million manufacturing jobs, more than 70,000 manufacturing plants, and only 1 in 10 Americans work in manufacturing compared to 1 in 4 back in the 1960s. The causes for the depreciating manufacturing sector stem from outsourcing labor to other countries as well as the increased use of automation to replace workers. In an effort to revive the industry, a bipartisan, bicameral bill was introduced earlier this year: the Invent and Manufacture in America Act.

The bill was introduced by U.S. Senators Chris Coons (D-DE) and Pat Roberts (R-KS) in June 2017, and U.S. Representatives Mike Kelly (R-PA) and Ron Kind (D-WI) brought a companion bill in the House. If passed, the Invent and Manufacture in America Act would offer an increased tax cut for companies conducting research and development in the United States and who manufacture their products domestically. According to Representative Kelly, “If you want to do something, you usually incentivize any good behavior. So, we’re looking at the loss of jobs we’ve had — manufacturing jobs, the number of manufacturing plants have closed, and when you ask them why is it that you’ve closed … why did you choose to actually assemble it someplace else, it’s usually because of a more favorable tax situation.”

The Invent and Manufacture Act has significant ramifications for the R&D Tax Credit in creating this favorable tax situation. While the R&D Tax Credit is still under-claimed for most industries, the manufacturing sector has been shown to benefit the most from the R&D Tax Credit, comprising 39.5% of the credit’s claimants and receiving nearly 61% of the total amount claimed from the credit across all industries. Coupled with the fact that innovation prompts nearly 50 percent of economic growth in the United States, the manufacturing industry has much to benefit from more investment in R&D. If passed and made into law, the Invent and Manufacture in America Act would increase the R&D Tax Credit up to 25 percent for companies that engage in R&D and manufacture domestically.

The proposed bill has been lauded by most innovators in the country. Keith Roe, president of American Society of Mechanical Engineers, said, “When American innovations are manufactured abroad, we surrender our competitive advantage. This bill will strengthen innovation at home and make the United States more competitive globally by encouraging more domestic R&D and manufacturing.”

Still Have Questions about the New Tax Changes?

Swanson Reed regularly hosts free webinars and provides free IRS CE credits as well as CPE Credits for CPA’s. For more information please visit us at www.swansonreed.com/webinars. To find out more, please contact a Swanson Reed R&D Specialist today.

President Trump Helping Our Competitors: Eco-Unfriendly Solar Panels

Source: Solaryna

So What’s the Deal?

If President Trump approves to subsidize China in solar panels- its a win for the environmentalists groups. Solar Panels appear to be a new investment trend, growth in free trade and manufacturing jobs, and renewable energy. Therefore, homeowners and businesses are jumping on the bandwagon to save some money and help the environment.

However, in September, the US International Trade Commission stated that US solar panel manufacturers are hurting because of foreign competition. Because of this, Trump considers to apply 35% tariffs on any foreign solar panels purchased by Americans.

In addition to this, President Trump seemed to pay China huge subsidies to create solar panels. They have now become our largest competitors. However, back in 2009, while Obama was in Office, Congress passed the $787 Billion American Recovery and Reinvestment Act. This essentially ended up not boosting U.S. solar manufacturing and paid companies to import them abroad.

Unfortunately, these foreign solar panels shown to have burned a lot of coal, created more green house gases, and taken long periods of time traveling the world to arrive in the U.S. So much for using ” this is environmentally friendly”, as your selling point. Over time, these would not be helping the environment, and America would benefit buying directly from American solar panel companies.

In addition to this, America could use of a lot more jobs. Tariffs or not – Asian labour has been loosing it’s lead in the past few years. Over time, solar panel manufacturing will end up back to the U.S.

Currently, R&D and manufacturing for solar panels are growing. Also, if you are involved advancing products like this or simply have a start up, you might be eligible to qualify for R&D Credit.

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source: Forbes

Therefore, you may receive up to 14% on your expenses. To find out more, please contact a Swanson Reed R&D Specialist today.

Swanson Reed regularly hosts free webinars and provides free IRS CE credits as well as CPE credits for CPA’s. For more information please visit us at www.swansonreed.com/webinars or contact your usual Swanson Reed representative.

Clean and Pristine: Fort Worth-based Clarus Glassboards Changing the Way We Write on Walls

Ever been ready to brainstorm with your team but you end up spending more time cleaning the conference room’s filthy whiteboard that still has smudges from the past decade? Clarus Glassboards understands that frustrating feeling and created innovative dry-erase glass surfaces so that “Yesterday’s presentation will no longer be today’s distraction.”

What began as an idea born out of a Fort Worth garage in 2009 has since expanded across the country and the globe. Founded by Robby Whites and Jeremy Rincon, Clarus Glassboards’ major clients include AT&T, Macy’s, Apple, Texas Instruments, Tesla, Twitter, and Amazon. The founders, along with Clarus President Andrew Philipp, were recognized in 2015 as EY Entrepreneurs of the Year.

Whites and Rincon started the company after they lost their jobs in the financial services industry. Because of their experience during the Great Recession, they pursued manufacturing instead of high-tech because they wanted to build a product that was more hands-on. As Whites described, “When we lost our jobs, we want to make something tangible; if you dropped it on your foot it would hurt.”

Made from Vitro’s Starphire glass, Clarus Glassboards would not only hurt if you dropped it on your foot, it probably won’t break either. The Glassboards are anti-glare, durable, and as easy to clean as a bathroom mirror. Better yet, these surfaces come in customizable sizes and colors to fit clients’ diverse needs, whether it’s in the classroom, the office, or the hospital. The company even developed a limited edition ping pong table.

Part of the secret to the company’s success? It builds its product right here in the United States rather than outsource. Whites explained, “Clients appreciate our being able to make a product and ship it quick; they appreciate customization; they appreciate high quality. We have to own and control the manufacturing process.” When Amazon requested hundreds of Glassboards within a few days for its newly opened office in Romania, Clarus was able to respond immediately because it manufactured at home. “No one else in the world could have done that for [Amazon],”Philipp said.

Clarus Glassboards’ product and manufacturing process are a result of constant innovation. Did you know the company’s innovative experiments are considered R&D and could be eligible for the R&D Tax Credit? If you are conducting similar experiments, you could be eligible for the R&D Tax Credit and receive up to 14% on your expenses. To find out more, please contact a Swanson Reed R&D Specialist today.

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“Sitting is the New Smoking” and DFW company Varidesk is helping you quit

An average American will spend 10 hours a day sitting, whether it’s at a desk, in a car, on a bus, or in front of the TV. Add that with 8 hours of sleep and you’ve got an entire population spending nearly 75% of the day not moving. Sitting has been linked to increased back pain and health concerns like obesity, high blood pressure, and high cholesterol. To get Americans moving again, Jason McCann and Dan Flaherty came up with a unique standing desk solution for the office: Varidesk.

The idea came to them in 2012 when Varidesk chairman Flaherty was diagnosed with sciatic nerve pain. A physical therapist suggested using a standing desk at work and Flaherty experimented with different standing desk options. Varidesk CEO McCann recalled, “He would literally put a brown box on top of his desk and felt a lot better.” But the range of standing desk choices were limited and so the two innovated their own alternatives. McCann said, “I remember Dan sitting there describing the product: ‘Can it come out of a box and sit on top of my desk and not have to be bolted down? Can it just pop up in a second?’”

And with that, Varidesk was born. The company has since created a series of different standing desks to fit a variety of needs in the workplace. With a patented spring lifting mechanism, each Varidesk is easy to lift and alter to find the right ergonomic fit. The company’s product line ranges from fully adjustable desks to smaller desktops that can convert existing desks into standing ones. You can also find solutions for tight cubicle spaces and laptops. At present, Varidesk has 50 new products and 200 more in the works.

Coupled with an efficient shipping process, Varidesk has become a huge success and is making the office workspace healthier. In 2017, McCann and Flaherty were awarded EY Entrepreneur of the Year for the Southwest Region. The company made its millionth sale this month and can proudly claim that over 95% of the Fortune 500 are their clients. Their latest high-profile client is the Mark Cuban, owner of the Dallas Mavericks.

Did you know Varidesk’s experiments and prototyping are considered research and development, and are therefore eligible for the R&D Tax Credit? If you are conducting similar experiments, you could be eligible for the R&D Tax Credit and receive up to 14% on your expenses. To find out more, please contact a Swanson Reed R&D Specialist today.

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Living on the edge: How R&D helped DFW-based entrepreneur to build the Single Edge Razor 2.0

After quitting his job selling fighter jets around the world, Patrick Coddou launched a new company based in Fort Worth called Supply and developed its signature product: the Single Edge Razor. Now, two years since the company’s inception, Coddou is back with the Single Edge Razor 2.0.

Coddou told D Magazine he came up with the idea for the Single Edge Razor because of his sensitive skin: “I used to hate shaving and using those five blade razors. So my search brought me to this old style of razor. I loved it so much that I thought, you know, I think I can make one of these and show more people what these are.” With the Single Edge Razor 2.0’s release this summer, Supply offers a new razor that is more durable and comfortable than existing multi-blade razors on the market.

From extensive research, Supply found that multi-blade razors caused irritation when shaving because these are often built as a “one-size-fits-all” product and the blades cut below the skin’s surface and pull up the hair to cut which results in discomfort and ingrown hairs. The razors are also more difficult to wash thereby prompting bacterial buildup in the blade and the material is usually cheap plastic that does not last. Supply’s Single Edge Razor 2.0, in contrast, developed three blade designs to account for distinct skin types: mild, classic, and aggressive. Mild was built for sensitive skin and short beard growth, aggressive was made for long beard growth and wiry hair, and classic for everything in between. The Single Edge Razor 2.0 is designed to shave just at the surface of the skin, ensuring a closer shave and comfort, and is cleaned easily to avoid bacterial buildup. As well, the blades are 100% stainless steel and twice as thick as the average multi-blade razor, guaranteeing it is rust-resistant and unbreakable.

Additionally, the Single Edge Razor 2.0 was designed at a closer distance and angle between the blade and the safety bar than its predecessors. While single edge razors have existed for decades, they have often been difficult to use because the blade must be held at the same angle throughout the entire shaving process or else there is risk of cutting and nicks. With the Razor 2.0, the angle is built-in for the user to handle with ease.

Coddou’s company is still constantly finding ways to improve its product. Supply employed an entirely new manufacturing process for the Single Edge Razor 2.0 by adopting methods used in aerospace and medical device manufacturing. In particular, the company used the Metal injection Moulding process which built products with extreme accuracy and ensures quality of the product. The company hopes to continue to invest in this type of manufacturing and to expand to create more razors and even an entire line of grooming products, from shaving cream after-shave to body wash. You can find the company’s product on Kickstarter.

Supply’s expenses incurred during the design stage of building a new razor and improving the manufacturing methods are all eligible for the R&D tax credit. If you are also engaging in R&D to develop new products or improve existing processes, you could be up to 14% back on your expenses. To find out more, please contact a Swanson Reed R&D Specialist today.

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Ericsson chooses Austin as site of new design center for city’s “bustling tech and start up scene”

When deciding where to open its next 5G design center, the Swedish telecommunications juggernaut Ericsson knew that Austin was the right choice.

With its highly skilled talent and growing reputation as a leader in the start-up tech industry, Austin has attracted many processor manufacturing companies and now Ericsson is joining the neighborhood. Many of Ericsson’s partners and suppliers are also based to Austin, making the city an obvious choice instead of California’s Silicon Valley. In an interview with Fierce Wireless, Sinisa Krajnovic, Head of Development Unit Networks at Ericsson, said, “We did analysis across the whole world. We had considered several places seriously and our choice was Austin for this.” Similarly, “Austin is one of the fastest-growing cities in the US with a bustling tech and start-up scene,” Niklas Heuveldop, Head of Ericsson North America, told Business Insider. “We want to capture the great talent on-hand there, enabling us to increase digital ASIC capabilities even further and be close to some of our key global customers.”

Ericsson’s new design center in Austin will focus on testing and developing the Application Specific Integrated Circuit (ASIC), a microelectronics processor. Intended for cell phones and mobile devices, these are 100 times faster and more cost and power efficient than the average personal computer processor. Located in Austin’s tech neighborhood, the new design center will collaborate with nearby silicon manufacturing plants to design solutions and prepare for the commercialization of the 5G network. Joining the company’s teams in Sweden and China, the Austin design center is part of Ericsson’s global strategy to develop “faster, better, and greener 5G products to bring into the Ericsson portfolio by 2019,” said Krajnovic. The 5G design center in Austin is expected to be up and running by the end of this year. It is currently recruiting designers and developers.

Ericsson’s expenses from R&D experiments conducted in Austin are eligible for the R&D Tax Credit and the company could receive up to 14% in return. If you are also conducting R&D testing to develop and manufacture processors, you could be eligible for the R&D Tax Credit. Contact a Swanson Reed R&D Specialist today.

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“The future is all electric” – General Motors announces a lineup of electric cars by 2023

Auto industry leader General Motors announced yesterday that it aims to introduce a lineup of 20 electric cars by 2023 with two electric models to appear on the market within 18 months. Mark Reuss, GM’s Executive Vice President of Global Product Development, Purchasing, and Supply Chain, said, “General Motors believes the future is all electric.”

The announcement follows a growing pattern in the auto industry where other major players like Volvo, Jaguar Land Rover, and Mazda are committing to electric cars. Volkswagen and Audi likewise shifted their focus from diesel to electric. This trend is fuelled in part by several countries’ decision to ban internal combustion engines powered by diesel and gas in the future. Countries include China, India, and the United Kingdom.

GM’s lineup will include a broad array of vehicles, from pure electric-powered cars to hybrids and even vehicles using hydrogen-fuel-cell technologies. Traditionally, hybrids with their gasoline-powered engines and electric batteries have demonstrated a safe option to break into the fuel-efficient market. Hydrogen-fuel-cell power, in contrast, poses a greater market risk. This technology involves converting compressed hydrogen into energy and releases only water vapor as waste. However, major improvements to existing infrastructure is needed before hydrogen-powered cars can enter mainstream use. Currently, only California, particularly in Los Angeles and the Bay area, has the infrastructure to maintain hydrogen cars.

Despite controversy surrounding hydrogen power, GM has been working on a hydrogen cell battery since 2015 and hopes to begin production by 2020. Building on its Chevy Bolt electric car technology, GM recently introduced the Silent Utility Rover Universal Superstructure (SURUS). The SURUS is a hydrogen powered vehicle with a four-wheel drive that runs on two electric motors. GM hopes the SURUS will be used as delivery trucks and even ambulances in the future. There is still of course, room for improvement. As Reuss told The Verge, “Whatever we do, from an electrification stand point, the next version will be better than the version we have on the road.”

Are you experimenting with prototyping different electric and hydrogen powered vehicles? You could be eligible for the R&D tax credit even if you haven’t begun production yet. To find out more on the R&D tax credit, please contact a Swanson Reed R&D Specialist today.

Swanson Reed regularly hosts free webinars and provides free IRS CE credits as well as CPE credits for CPA’s. For more information please visit us at www.swansonreed.com/webinars or contact your usual Swanson Reed representative.

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2017: The Best Year for Texas Manufacturing Despite Hurricane Harvey

As the month of September comes to a close, the Federal Reserve Bank of Dallas (Dallas Fed) released its monthly Texas Manufacturing Outlook Survey earlier this week. Even in the aftermath of Hurricane Harvey, September’s survey results were clear: the manufacturing industry in Texas is still going strong.

Industry executives throughout Texas contribute to the survey on the monthly basis, providing data for indicators such as employment, orders, prices, output, and so forth. Dallas Fed then calculates this data and releases an index for each indicator to reveal the health of the state’s economy. Any index below zero demonstrates a decrease while a score above zero means growth.

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Hitachi discusses strategy in R&D initiatives around the world

Conglomerate giant, Hitachi, operates in several industries around the world and invests heavily in research and development across many sectors. As a for-profit company, Hitachi funds their own research and development, and so must strategize in choosing which R&D projects or industries to invest in to be most effective and lucrative.

According to Hitachi’s co-head of Social Innovation Business, Patrik Sjoestedt, Hitachi’s strategy is to address major issues that have the biggest affect on society. These issues and their affects vary greatly by region, but typically these projects tackle issues such as climate change, water management and energy use. Hitachi addresses modern day problems with technology to create solutions for society, such as developing sensors to deal with traffic congestion.

Determining which issues to invest R&D in is heavily influenced by region. For example, in Southeast Asia, development is heavy as cities are being built up, and so importance of research and development is on issues such as energy efficiency and security. Another example exists in Germany, where manufacturing is one of the biggest industries. Here, R&D would aim to solve issues resulting in reducing waste, optimizing energy, managing pollution and increasing overall efficiency. Similarly, in cities such as London and New York, transport (including transport of goods) is a major contributor to issues like pollution and congestion. R&D invested in transportation would aim to reduce emissions and optimize transport loads, perhaps through technologies such as self-driving vehicles.

Hitachi will continue innovating to solve major issues faced around the world today through R&D. The R&D tax credit is another strategy available to Hitachi any other companies developing new and improved products and processes, allowing a credit of up to 14% of eligible spending.

If you would like to find out how your company could benefit from Research and Development Tax Credits, please contact a Swanson Reed R&D Specialist today.

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Automated Vehicles- The Next Big Thing for R&D in Fort-Worth Region

Self-driving cars are set to be the next big thing in Texas, specifically in the Forth Worth region as congestion is a major issue. The U.S. ranks 16th overall for congestion, making the market for self-driving cars needed. The development of this product is something that is completely new and innovative. It requires experimentation in regards to safety, maintenance, etc. Research and development (R&D) tax credits is something that will be very useful in this industry.

Thomas Bamonte, the automated vehicles program manager is a team of one in the Fort-Worth region and is looking into the legality of having more vehicles on roads but increasing traffic flow at the same time with self-driving cars. Bamonte believes that before self-driving cars hit the market, there has to be a few changes. The focus may change from cement and road structure to back-end computing systems, digital technology within signs, traffic lights etc. R&D tax credits will benefit this industry due to the highly technological changes that will need to happen.

The changes that will need to happen to make the autonomous vehicle industry flourish are ongoing and still in the design stages. If your company is experimenting with new products or technologies contact a Swanson Reed R&D Tax Advisor today.

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