Factory Automation Grants - How They Help Your Business
From the federal government to state and local governments, there are over $80 billion dollars available in free government money that manufacturers can tap into to help automate their operations.
Eligible companies can apply for grants up to $25,000 for specialized hardware or software
in the Industry 4.0 technology groups. Or for grants up to $50,000 for specialized equipment
designated to help manufacturers increase productivity, efficiency, and competitiveness.
Many manufacturing companies rely heavily on computers to manage their operations and require specialized software to effectively manage the production flow. They also require expertise and the proper training to install and maintain the machinery.
“Manufacturers can look at these grants as a possible solution to staffing shortages too," comments Jenny Smith, CPA, CFE, and Director at McGowen, Hurst, Clark Smith. "Purchasing specialized equipment aids in managing production flow, while increasing productivity."
There are currently two types of Iowa manufacturer grants available:
- Manufacturing Innovation Equipment Grants of up to $50,000 to purchase specialized equipment to increase productivity, efficiency, and competitiveness. This is used to purchase equipment (like 3D printers, 3D scanners, and post-printing technologies) for the manufacturing process.
- Manufacturing Industrial Internet of Things (IIoT) Infrastructure Investment Grants of up to $25,000 to purchase Industry 4.0 hardware or software to improve cybersecurity, data analytics, visualization, etc. This grant is used toward the purchase of specialized hardware or software – including CAD Software.
Applicants can apply for one or both grants as long as the lifetime maximum amount of awards does not exceed $75,000 per applicant.
Filling out an application and contacting the organization is the best way to determine if you are eligible for factory automation grants.
In general, to qualify for a grant, manufacturers should meet the following guidelines:
- Small- and medium-sized manufacturers (SMEs) with a minimum of three employees and fewer than 75 full-time employees across all locations.
- Iowa manufacturers with NAICS codes 31-33, used in the Manufacturing 4.0 report
- A minimum of 51 percent of the applicant’s revenue must be derived from the sale of manufactured goods
- Applicants must have been in operation for at least three years
Before applying for factory automation grants, be sure to do your research. Identify what the organization needs to purchase and if those items are eligible for that particular grant.
With global marketplace competitiveness such a strong driver for Iowa manufacturers, now is the time to consider one of these grants. Reach out to McGowen Hurst Clark Smith for assistance with your application process and any other accounting- or tax-related needs your company has.