Smart manufacturing technologies can drive significant improvements in efficiency, energy savings, and productivity for facilities. To support these upgrades, a range of financial incentives are available to help offset some of the initial costs. Manufacturing facilities can leverage federal, state, and local incentive programs to help fund the integration of advanced technologies into their processes. These programs provide crucial financial support, enabling manufacturers to adopt smart manufacturing solutions more affordably. Below are some key incentive options designed to aid manufacturers in reducing the costs associated with smart manufacturing technology upgrades.
If you know of any additional financial incentives for manufacturers that should be included, we invite you to share them with us. Please email us at smartmanufacturing@mwalliance.org with the details for consideration.
Federal Incentives
Industrial Research and Assessment Center Implementation Grants | U.S. Department of Energy
- The Industrial Training and Assessment Centers Implementation Grant Program is designed to help small- and medium-sized manufacturers (SMMs) implement recommendations made in Industrial Training and Assessment Center or Onsite Energy CHP-TAP assessments since 2018, and recommendations made in assessments that DOE has deemed equivalent may be eligible.
Qualifying Advanced Energy Project Credit (48C) Program | U.S. Department of Energy
- The 48C credit is a tax credit for investments in advanced energy projects. The Department of the Treasury and the Internal Revenue Service, in partnership with DOE, have announced up to $6 billion in a second round of tax credit allocations for projects that expand clean energy manufacturing and recycling and critical materials refining, processing and recycling, and for projects that reduce greenhouse gas emissions at industrial facilities.
Manufacturing Capital Connector Initiative | U.S. Department of Energy
- The Manufacturing Capital Connector is a platform that connects companies applying to DOE-administered clean energy manufacturing programs to a range of capital providers seeking high-quality projects. DOE announced their initial cohort of participating financial institutions who have experience in funding similar opportunities.
Funding Opportunity Announcements | U.S. Department of Energy
- The U.S. Department of Energy (DOE) supports manufacturing innovation through its Funding Opportunity Announcements (FOAs). The DOE continuously releases new FOAs, each tailored to specific manufacturing needs and sectors, allowing organizations to find funding aligned with their project goals.
State Incentives
Economic Activity Stabilization and Enhancement (EASE) Program
The EASE program is aimed at supporting technology and operational advancements in Indiana’s manufacturing industry, which has long been a key driver of the state’s economy.
Made in Illinois Grant Program
Launched by the Illinois Department of Commerce and Economic Opportunity (DCEO) and the Illinois Manufacturing Excellence Center (IMEC), this program provides up to $50,000 in matching funds for small to mid-sized manufacturers. This funding can support innovation projects that boost productivity, efficiency, and technological advancement.
KY-Manufacturing Extension Partnership Catalyst Equipment Match
Provides up to 50% reimbursement for eligible capital equipment and technology investments. This includes advanced manufacturing technologies like CNC machines and robots, as well as smart technologies such as 3D printing, cobots, AI, and big data analytics tools.
Small Manufacturers Retooling
Michigan’s Department of Environment, Great Lakes, and Energy (EGLE) offers matching grants to accelerate the implementation of energy efficiency for small manufacturers, through the Retooling Program. This program will help fund manufacturing process improvements that reduce energy use and cost per unit produced.
Industry 4.0 Technology Implementation Grant
The Michigan Economic Development Corporation Industry 4.0 Technology Implementation Grant program will provide 50% reimbursement for qualifying Industry 4.0 technology costs up to $25,000 for eligible Michigan manufacturers.
Capital Access Programs
The Michigan Economic Development Corporation Capital Access Programs is made up of several programs that can help small business throughout Michigan receive loans from banks and lending institutions to help their businesses grow and succeed. MEDC works directly with lenders who in turn can provide traditional financing to small businesses. Key target customers for these programs include small manufacturers.
Local Incentives
Kane County Manufacturing Grant Program
Kane County has partnered with IMEC to launch the Kane County Manufacturing initiative that will bring the future of manufacturing to facilities in Kane County Illinois. Through two pillars of focus, this grant will help manufacturers sprint towards organizational success and help the manufacturing workforce thrive.
Cook County Illinois Manufacturing Reinvented Grant
The Manufacturing Reinvented Grant reimburses manufacturers for the implementation of projects designed to improve productivity, develop future leaders, train their workforce, and grow their business.