Michigan – Page 2 – Swanson Reed | Specialist R&D Tax Advisors

Sartorius AG to Open Center of Excellence in Michigan

Sartorius AG, a German laboratory and pharmaceutical equipment provider, announced their plans to expand into Michigan. This move will include the opening of a new 130,000 sqft. State-of-the-art plant in Ann Arbor in late 2023.

Theis Ann Arbor location will consolidate existing operations in Washtenaw County, creating a Center of Excellence for both the Laboratory and Bioprocess Products and Services in North America. This center of excellence will create 160 jobs from operations to product development. Product development will include the development of innovative solutions to help customers create drugs that cure, prevent, or halt the progression of diseases.

Sartorius produces their biopharmaceuticals using living cells. Their innovative methods simplify workflows and minimize human errors. Sartorius has been pioneering and setting the standards for single-use products used throughout all biopharmaceutical manufacturing processes. By expanding into Michigan and creating a center of excellence, they can help to expand innovation in the industry while contributing to the state’s economy.

Are you developing new software for an existing application? Did you know your development work could be eligible for the R&D Tax Credit and you can receive up to 14% back on your expenses? Even if your development isn’t successful your work may still qualify for R&D credits (i.e. you don’t need to have a patent to qualify). To find out more, please contact a Swanson Reed R&D Specialist today or check out our free online eligibility test.

Who We Are:

Swanson Reed is one of the U.S.’ largest Specialist R&D tax advisory firms. We manage all facets of the R&D tax credit program, from claim preparation and audit compliance to claim disputes.

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

XL Fleet Opens Fleet Electrification Technology Center

XL Fleet has announced the opening of a brand new 25,000 sq ft R&D center in Wixom, Michigan as they work to enhance their sustainable technologies for the commercial fleet industry.

Boston-based XL Fleet began in 2009 when the green transportation market was in its infancy. They started with a mission to provide simple, sustainable electrification solutions to the commercial fleet market – and this mission continues today.

The opening of this new Fleet Electrification Technology Center provides XL Fleet with the ability to expand their footprint and capacity, increasing their talent pool and technology. The center will include a component test lab with a vehicle chassis dynamometer, electronics lab, and battery testing equipment.

Alongside the creation of 50 high-skill engineering positions in Michigan, they are hoping the facility will provide the potential to further their path breaking innovations in their home state.

Are you developing new technology for an existing application? Did you know your development work could be eligible for the R&D Tax Credit and you can receive up to 14% back on your expenses? Even if your development isn’t successful your work may still qualify for R&D credits (i.e. you don’t need to have a patent to qualify). To find out more, please contact a Swanson Reed R&D Specialist today or check out our free online eligibility test.

Who We Are:

Swanson Reed is one of the U.S.’ largest Specialist R&D tax advisory firms. We manage all facets of the R&D tax credit program, from claim preparation and audit compliance to claim disputes.

OrdrAI Uses AI to Develop Smart Text-To-Order Software for Restaurants

Healthcare Startup Receives FDA approved

Jet’s Pizza has incorporated some new software into their business plan. Using OrdrAI’s new ordering software, customers can text their order, address, and details to the stores regular phone number. The system facilitates payment, processes the order and sends the information to the store to begin the process. It even sends a confirmation and estimated time of delivery to the customer.

The artificially intelligent software system is capable of answering questions about store hours, the menu, and sends out advertisements to boost sales. OrdrAI wanted to build a text-only ordering system that wouldn’t require a special app for customers to download. So they built this application to work seamlessly with just your phone. They worked with Jet’s Pizza to ensure it worked for the client in the real world, and are now hoping to expand to other restaurants.

Who We Are:

Swanson Reed is one of the U.S.’ largest Specialist R&D tax advisory firms. We manage all facets of the R&D tax credit program, from claim preparation and audit compliance to claim disputes.

Rivian Automotive Startup Takes on Tesla

The electric vehicle startup company, Rivian Automotive Inc. has raised new funds in order to scale and advance their company in the electric vehicle industry. With these new funds, Rivian Automotive hopes to launch their new electric vehicles, including the R1T (electric pickup truck), the R1S (electric SUV), and the Amazon delivery vehicles. Its vehicles feature cloud-based connectivity and all terrain capabilities.

Rivian Automotive, being an ambitious new company seeks to compete with giants in the electric vehicle industry, such as Tesla, Inc. with its plans for a new sport utility vehicle and truck. These plans, however, are met with a lot of competition since they trail behind Tesla’s release of their own cyber truck, which is scheduled to roll out at the end of this year. But the company is reaching for the top shelf as they plan to release vehicles for foreign markets and versions of vehicles with a higher mileage range on one charge and more towing capacity.

Are you adapting existing technology for a new application? Did you know your development work could be eligible for the R&D Tax Credit and you can receive up to 14% back on your expenses? Even if your development isn’t successful your work may still qualify for R&D credits (i.e. you don’t need to have a patent to qualify). To find out more, please contact a Swanson Reed R&D Specialist today or check out our free online eligibility test.

Who We Are:

Swanson Reed is one of the U.S.’ largest Specialist R&D tax advisory firms. We manage all facets of the R&D tax credit program, from claim preparation and audit compliance to claim disputes.

COVID-19 Vaccine To Be Manufactured in Portage

A new two square mile property in Portage Michigan has become the largest manufacturing site for Pfizer Inc. The expansion is valued at $465 million and will add around 450 jobs to Kalamazoo County.

Pfizer has announced that its vaccine seems to be 90 percent effective against COVID-19 and aims to have it in production by late November.

The vaccine can begin rollout once Emergency Use Authorization has been obtained from the FDA, which could occur this year. The vaccine will be free to Americans.

Pfizer expects up to 50 million vaccine doses to be manufactured in 2020 and up to 1.3 billion in 2021. A deal has been reached with the federal government to receive a $1.95 billion payment for the first 100 million doses, once the vaccine has FDA approval.

Michigan’s life sciences industry is worth over $28 billion and the development of the COVID-19 vaccine proves just how essential it is.

However, Michigan is one of four US states that doesn’t have the R&D tax credit. It is hoped that this will be restored in the future.

Source: Bridge Michigan

Steady Growth For Manufacturing R&D in West Michigan

The manufacturing industry is synonymous with West Michigan. This special relationship was forged by an outburst of technological innovation in the area hundreds of years ago, which included the assembly line and major developments in the transmission system and internal combustion engine.

Fast forward to today’s innovative endeavors in the United States, it isn’t implausible to assert that the state of innovation activities in the manufacturing sector in North America has been improving consistently, with West Michigan retaining its dominant role.

According to an annual report analysis made by MiBiz and filed with federal securities regulators, the nine publicly traded companies in West Michigan collectively spent more than $2 billion on research and development (R&D) in 2018: which marks a 6.5 percent increase from the preceding year.

This analysis proved that manufacturers in the arbitrary region of the state remain consistent and committed to investing in engineering, research and development activities, without overextending themselves financially.

“Even in a time of uncertainty, the local companies around here are keeping disciplined on the R&D,” Wall, director of automotive analysis in Grand Rapids at IHS Markit told MiBiz. “They do that to their credit and it should bear well for them at the end of the day when you look at the investments that they are making. Frankly, I expect all these companies to know that if they don’t, their competitors will.”

West Michigan has been very successful to date in supporting its R&D spending as a percentage of net sales (a metric also regarded to as R&D intensity); with the value ranging from less than 1% to more than 6% among the public traded firms in the analysis.

Better yet, based on the current geopolitical and economic indicators, we haven’t seen or heard anything that’s really likely to change the companies’ level of investments in relation to R&D. We should expect them (the firms) to maintain their steady approach to R&D spending in the following years.

Open-Storm Detroit Dynamics Wins The Inaugural Intelligent Water Systems Challenge

A University of Michigan and Great Lakes Water Authority team has won the first Intelligent Water Systems Challenge. The winning project, Open-Storm Detroit Dynamics, was awarded $25,000. The team used data analytics in the development of a tool to improve the efficiency of existing collection systems in Detroit, while minimizing combined sewer overflows.

The Intelligent Water Systems Challenge is hosted by a partnership between the Water Resource Foundation and WEF called the Leaders Innovation Forum for Technology (LIFT). The competition aims to give professionals, students, as well as technology experts an opportunity to innovate and find ways to deal with the numerous issues that face water and wastewater utilities. The executive director at WEF, Eileen O’Neil stated that with continued support, there would be effective adoption of smart water technologies in Detroit.

The Great Lakes Water Authority Team believed that their innovative solution could assist Detroit’s system to handle an extra 100 million gallons of water without any new construction. This alone would save an estimated $500 million, which would otherwise have been used to increase the size of storage.

The $15,000 second prize went to the Metropolitan Water Resources District of Greater Chicago. Their project developed an intelligent warning system for Odors at the Thornton-Composite-Reservoir. The $5,000 third prize was awarded to the Clean Water Services (CWS) team for their pump station optimization project. These innovations demonstrate Detroit’s commitment towards developing smart water technologies that solve current and potential future challenges.

Detroit’s Urban Farming Initiative Is Helping To Feed The Poor

Change is common in the city of Detroit. The city witnesses harsh winters and warm summers and change has been prevalent in the auto industry during the 20th century. Auto manufacturers became a large part of the city, creating numerous jobs. However, over time, cracks appeared in both the economy and culture of the city, leading to the number of residents decreasing by about half from 1950 to 2000. This was further compounded by the GFC, when unemployment levels increased to 28.4 percent in 2009.

Lately, this American underdog has been engaging in initiatives that indicate a robust comeback. The current unemployment level currently stands at 10.2 percent. The growth efforts of the city have been greatly boosted by tech-startups as they have been able to create approximately 171,000 jobs since 2013.

A partnership between Sustainable Brands, BASF and the Michigan Urban Farming Initiative has created an agrihood project in Detroit’s North End neighborhood. The urban farm won the top prize in a University of Michigan innovation challenge. Tony Gersh, university student and Founder of the Michigan Urban Farming Initiative stated that the goal of the partnership is not just to feed individuals through the use of vacant land, but to come up with new ideas about how urban spaces can be improved and developed. Since the inception of the initiative, volunteers from all over the world have given approximately 50,000 hours of their time, translating to 50,000 pounds of organic produce. This produce is then given to the neighborhood, food pantries, churches and more.

Innovative university startups are on the rise all over the country. Many sustainable products and services are being developed by students to help improve the quality of life for disadvantaged groups. Startups carrying out research and development to create a new or improved product or service can benefit from the R&D Tax Credit. For the first three years of R&D claims, companies receive a gross credit equal to 6 percent of the total qualified research expenses.

Detroit Mobility Lab Partners With Boston Consulting Group To Create Michigan Mobility Institute

Detroit Mobility Lab recently named Boston Consulting Group (BCG) as their advisory partner to assist the firm in creating a modern training hub called the Michigan Mobility Institute. The group seeks to create an institute to train professionals in the mobility sector. This sector has been on the rise in Detroit and has enormous potential to develop innovations that improve the quality of life for its citizens.

BCG will play a key role in educating employees in various jobs about concepts such as cybersecurity, robotics, artificial intelligence and other mobility-related fields. In this, it is important to point out that BCG has a rich portfolio in regards to electric, urban and autonomous mobility, futuristic digital capabilities and vast experience in economic development projects. The Co-founder of the Detroit Mobility Lab, Chris Thomas, stated that the collaborative efforts with BCG will prove beneficial as BCG is well positioned to play a major role in the strategic approach of the mobility institute.

Earlier this year, BCG involved a group of 10 entities (both public and private) in the launching of 6 mobility programs. The pilot programs focused on downtown accessibility, electric vehicle use, traffic safety and neighborhood mobility. These consisted of a low-cost car-sharing program for specific Detroit neighborhoods, an app-based demand-driven shuttle service, an electric vehicle hub with fast-charging stations and a mobile parking app that integrates dynamic pricing with an incentives program.

The partnership between the two firms is geared towards investing in the city of Detroit and the state of Michigan to become a leader in the mobility sector.

Detroit To Participate In Self-Driving Vehicle Project

Detroit will benefit from a share of $5.25 million for a project aimed at helping cities adjust to the self-driving car revolution. The other cities that have been chosen alongside Detroit include San Jose, Miami, California, Pittsburg and Long Beach. Each city will share their findings at regular meetings.

The cities are to be engaged in a five-year plan by the John S. and James L. Knight Foundation initiative in an effort to enable citizens to understand the concepts of self-driving vehicle technology. Detroit’s main focus will be to connect citizens to employment hubs. This is a challenge which was well described in 2015 in a press story entitled “James Robertson’s 21-mile walking commute”. This piece discussed about the awful transport frameworks in the southeastern region of Michigan. The Chief of Mobility Innovation for the Detroit Mayor’s Office, Mark de la Vergne, stated that the details of how much each city will get from the foundation are still being decided.

The grant money will be used to integrate autonomous vehicles with more traditional services. Citizens will be engaged in a multiyear conversation on the future of mobility through autonomous vehicle projects. Pilot projects will be conducted to iron out issues. These projects will engage the community to ensure that local needs are met. The initiative will help the city stay up-to-date with the increasing rate of testing and deployment of self-driving vehicles across the globe.

Photo by Harald Felgner on Foter.com / CC BY-NC-SA