expertise in manufacturing and distributing has allowed us to develop a unique
focus for tool builders. As industry leaders, we focus on our clients’ needs,
participate in industry associations and regularly publish articles and columns
in trade publications.
team can help determine if your tool shop is eligible for several opportunities
including the ones below:
- Research & Experimentation Tax Credits
The Research and Experimentation Tax Credit
builders for developing custom tooling designs or experimenting with tool-specific
processes or fixturing. Tool builders and
moldmakers may see a positive impact on their tax filings with new regulations.
Our team explains inMold Making Technology - New Regulatory
- Export Incentives (IC-DISC)
The Interest Charge – Domestic International Sales Corporation (IC-DISC) is available to both manufacturers and
distributors, and it is not limited to any specific type of entity. An IC-DISC
can enable a tool builder to reduce overall income tax liabilities related to
their exports, however, proper planning is necessary to ensure that the IC-DISC
is established correctly and that tax benefits are maximized each year. Find out how Mueller Prost helps our clients in
this issue of Mold Making Technology - Permanent Tax Savings
- Manufacturer's Deductions (DPAD)
The domestic production activities deductions (“DPAD”), also known as
the Manufacturer’s Deduction, is an extremely beneficial provision of the
Internal Revenue Code for companies that operate in the moldmaking industry in
the U.S. The team at Mueller Prost can help companies ensure they are
calculating the proper amount of DPAD, as well as help establish procedures
that substantiate such positions in the event of an IRS examination. Partner
Michael Devereux offers Steps to compute DPAD in Mold Making Technology - Tax Benefits from Manufacturing in the U.S.
- Accounting Methods
Our team will help you determine the most advantageous method of accounting
for your tool shop. We’ll analyze long-term vs. short-term contracts, cash
vs. accrual, and more in order to ensure your shop is reporting the proper
amount of income each year. Commonly used methods are discussed in Mold Making Technology - The Bottom Line: A Method to the Tax Madness
- Fuel Excise Tax Credit
Do you use forklifts
fueled with propane gas? Our professionals will determine if you are eligible
for an Alternative Fuel Tax Credit of $.50 per gallon for all of the propane
gas used in forklifts.
- Hiring Incentives (WOTC)
Many of our clients
benefit from the Work Opportunity Tax Credit (WOTC) credit when they employees
in targeted groups.
A common targeted group is veterans. In
general, the maximum WOTC for hiring a qualifying veteran is $2,400. However,
it can be as high as $4,800, $5,600 or even $9,600, depending on a variety of
factors. Partner Michael Devereux explains in his column, Mold Making Technology - The Bottom Line: Hire a Veteran
Contact us to learn about other targeted groups
and how to use the WOTC.
In addition to the tax savings opportunities listed above, Mueller Prost offers additional services to tool builders:
To schedule a consultation, or to learn more, contact Mike Devereux II, CPA, CMP