Manufacturing Consulting and Accounting Services

Section 179 enables manufacturers to write off qualifying fixed asset purchases in the year those purchases are made. The Section 179 deduction applies to tangible personal property (such as machinery, equipment, and office furniture) which is purchased for use in a trade or business.

Recent legislation increased the scope of Qualified Improvement Property (QIP) to include the following improvements to non-residential property after the date the property was first placed in service: roofs, heating, ventilation, air-conditioning, fire protection, and alarm and security systems.

BIZ TIP: How Manufacturing Companies Can Benefit from the Section 179 Expensing Deduction

Bonus Depreciation to 100% became available with the Tax Cuts and Jobs Act (TCJA). Effective for assets acquired and placed in service after September 27, 2017, the provision applies to both new and used property. As such, this provision heightens the importance of cost segregation studies.

Costs identified as tangible personal property and land improvements are eligible for immediate expensing whether the property is new construction or acquired property. The 100% expensing is available through 2022, after which it begins phasing out by 20% per year.

BIZ TIP: 5 Depreciation Methods Business Owners Need to Know

Businesses and individuals have specific foreign reporting requirements and, in some cases, U.S. withholding is required on payments made to a foreign entity or person. Significant penalties can apply if you are not aware of these requirements and fail to meet these reporting and withholding obligations.

Our professionals can assist you in meeting these obligations and in international tax planning through our network of specialists and international affiliates. Here are a few of the areas we can evaluate for your business:

• Aliens and Expatriates IRS Rules
• Entity Selection for International Businesses
• Transfer Pricing Rules
• Structuring of Transactions

The Research and Development (R&D) Tax Credit is calculated as a percentage of the expenses related to R&D activities. These activities could include:

• Improving a current process
• Creating a new production process
• Developing a new technology or improved product

SVA can help you through the complex calculations and documentation needed to benefit from this often underused tax credit.

SVA's Supply Chain Management education and consulting services focus on your specific organization, the challenges you face, and the objectives you are working towards. Together, we strategize and instruct in the following areas:

• Supply Chain Planning Process
• Inventory Management
• Logistics

BIZ TIP: How to Reduce Negative Effects from Poor Manufacturing Inventory Management Processes

Nexus, also known as sufficient physical presence, determines whether an out-of-state business selling products into a state is liable for collecting sales and use tax on sales into the state.

Nexus is required before a taxing jurisdiction can impose its taxes on an entity. Congress enacted Public Law 86-272 which protects companies with only minimal state activities from being taxed.

Our professionals can assist you in determining your company's multistate tax situation, take steps to insulate your activities from overzealous states, and minimize your overall state tax liability.

BIZ TIP: What Manufacturers Should Know in the Wake of Wayfair vs. South Dakota

IC-DISC is a powerful tax-savings opportunity for U.S. businesses who export a minimum of $1 million in goods annually. Companies who export less than $1 million may also benefit from this tax-savings opportunity with a review of costs vs. benefits to determine the best options.

It is available to manufacturers and distributors and it offers them permanent tax savings primarily resulting from a reduction in the tax rate on qualified dividends.

Through 2025, taxpayers can deduct up to 20% of their QBI from a pass-through entity (sole proprietorship, LLC, partnership, or S corporation).

Phaseouts begin when taxable income exceeds $164,900 for single taxpayers or $329,800 for married couples (other limitations also apply).

BIZ TIP: IRS Attempts to Clarify Section 199A Qualified Business Income Deduction in FAQs

Everyone is familiar with sales tax and the role it plays as a consumer. However, understanding the complexities and laws involved with sales and use tax as it applies to business is another story.

Reduce the impact of sales tax on not only your business but your customers by proactively planning for the tax consequences of your business-related activities.

The Wisconsin Manufacturing Tax Credit applies to those businesses that own or rent and use real and personal manufacturing or agriculture property in Wisconsin. If the company is a partnership, LLC, or an S corporation, the credit will pass through to its owners.

The credit is 7.5% of "eligible qualified production activities income." With a maximum Wisconsin tax rate of 7.65% for individuals, this credit will virtually eliminate the Wisconsin tax on manufacturing and agriculture income.

If you hire individuals from a specified disadvantaged targeted group, you could be eligible for a credit worth 25-40% of their wages. Find more information on the tax credit extension.

BIZ TIP: Manufacturers: Hire Workers From These Target Groups to Claim the WOTC