The Dallas-Fort Worth metroplex is one of the largest manufacturing regions in Texas, with strengths in aerospace, defense manufacturing, food processing, electronics, and advanced manufacturing. Manufacturing companies in Dallas can access state workforce training grants, federal research programs, SBA financing, tax incentives, and local economic development programs that support capital investment and job creation.
This guide covers the most relevant programs for manufacturing businesses in the Dallas metro area in 2026.
Skills Development Fund
Manufacturing employers in Dallas can partner with Dallas College or Tarrant County College to access Skills Development Fund grants for customized workforce training. Manufacturing is one of the highest-priority sectors for SDF funding. Programs can cover CNC machining, welding, quality control, lean manufacturing, and automation technology training. Skills Development Fund for manufacturing.
Texas Manufacturing Exemptions
Texas provides sales tax exemptions on manufacturing machinery, equipment, and materials consumed in the manufacturing process. The manufacturing exemption is one of the most valuable Texas tax benefits for manufacturers, covering everything from production equipment to raw materials directly used in manufacturing. Manufacturing tax exemptions guide.
SBIR/STTR Research Grants
Dallas manufacturers developing new products or manufacturing processes can apply for SBIR grants from DoD, DOE, and other agencies. Defense manufacturing, advanced materials, and automation technology are particularly strong SBIR topics for Dallas-area companies.
R&D Tax Credit
Manufacturers conducting qualifying research — developing new products, improving manufacturing processes, designing custom tooling, or testing new materials — can claim the federal R&D tax credit. The credit provides a dollar-for-dollar tax reduction for qualifying expenditures. R&D credit for manufacturers.
Chapter 380/381 Incentives
Dallas-area cities and counties offer Chapter 380/381 incentives for manufacturing companies making capital investments and creating jobs. Incentive packages can include property tax abatements, infrastructure improvements, and performance-based grants.
Freeport Exemption
Dallas manufacturers that store inventory in Texas for 175 days or less before shipping out of state can qualify for the Freeport Exemption, which eliminates property tax on qualifying inventory in transit. This exemption is particularly valuable for manufacturers with significant inventory turnover. Freeport Exemption guide.
SBA 504 Loans
Manufacturers purchasing facilities or major equipment can access SBA 504 loans with below-market fixed interest rates, 10% down payments, and terms up to 25 years. The program is particularly well-suited for manufacturing facility acquisition and expansion projects. SBA 504 for manufacturers.
Section 179 and Bonus Depreciation
Manufacturing companies can immediately expense qualifying equipment purchases under Section 179 and claim bonus depreciation on additional equipment. CNC machines, production lines, material handling equipment, and testing equipment typically qualify.
WOTC Hiring Credits
Manufacturers hiring from WOTC target populations can claim credits of $2,400 to $9,600 per qualifying hire. Manufacturing companies with significant hiring needs can generate substantial annual WOTC credit benefits.
Find Programs That May Fit Your Manufacturing Business
Dallas manufacturers can stack workforce training grants, manufacturing tax exemptions, R&D credits, equipment deductions, and local incentives to significantly reduce operating costs and support capital investment.
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