Manufacturing/Distribution Articles

U.S. Customs and Border Protection (CBP) activated the Consolidated Administration and Processing of Entries (CAPE) functionality in the Automated Commercial Environment (ACE) on April 20, 2026, marking the first operational mechanism for processing refunds of duties paid under tariffs illegally imposed pursuant to the International Emergency Economic Powers Act (IEEPA).

Determining the right form of ownership for your new manufacturing company or deciding whether to change the structure of your existing company isn’t easy.

While financial statements can provide a snapshot of your company’s financial health, a benchmarking study offers the deeper insights needed to interpret that picture and drive smarter decisions.

Given the high costs of maintaining inventory, now’s a good time for manufacturers to explore options to control them. Here are a few.

Drafting an accurate budget can improve a manufacturer’s operational discipline and position the company to respond more effectively to market changes and unexpected challenges.

Reducing waste in manufacturing improves efficiency, lowers costs, and strengthens profitability. Strategies like preventive maintenance, inventory management, and recycling help eliminate inefficiencies while boosting productivity and product quality. A commitment to continuous improvement ensures long-term operational excellence and competitiveness.

Succession planning is critical for manufacturing business owners who want to protect their company’s future. By defining goals, choosing the right ownership transfer strategy, and preparing successors through training and mentorship, you can ensure a smooth leadership transition and preserve your legacy. Starting early gives your successors time to learn, build relationships, and maintain operational stability long after you step away.

The One Big Beautiful Bill Act introduces a 100% first-year depreciation deduction for nonresidential real estate classified as Qualified Production Property (QPP), offering significant tax savings for manufacturers. To qualify, properties must meet strict usage and timing requirements, and businesses should be aware of limitations such as nonqualified areas, leased buildings, and potential recapture rules. Careful planning and IRS guidance will be essential to maximize this benefit.

OBBB has made the Qualified Opportunity Zone (QOZ) program permanent and introduced enhanced tax incentives for manufacturers building in rural QOZs, including the creation of Qualified Rural Opportunity Funds (QROFs) that offer a 30% basis step-up after five years. These changes make rural QOZs especially attractive for manufacturers seeking funding and long-term tax savings, with additional advantages such as a lower improvement threshold and extended capital gains exclusions.

Accrual-basis businesses can reduce their 2025 tax liability by recognizing expenses incurred this year, even if payment occurs in 2026 including wages, taxes, and utilities. Reviewing prepaid expenses, writing off uncollectible receivables, and properly timing income and deductions are key strategies for year-end tax planning.