Manufacturing Day, observed annually on the first Friday in October, celebrates American manufacturing and highlights the sector's importance to the economy. For Texas manufacturers, it is an opportunity to explore the strong set of government programs that support manufacturing through workforce training, equipment grants, tax incentives, and procurement opportunities.
Federal Manufacturing Programs
NIST Manufacturing Extension Partnership
The Manufacturing Extension Partnership (MEP) provides consulting and technical assistance to small and mid-sized manufacturers. The Texas Manufacturing Assistance Center (TMAC) is the state's MEP center, offering lean manufacturing, quality systems, supply chain, and cybersecurity assistance.
SBIR/STTR for Manufacturing
Manufacturers developing new products, processes, or technologies may qualify for federal R&D grants. DOD, DOE, and NIST all fund manufacturing innovation through SBIR and STTR programs.
R&D Tax Credit
The federal R&D Tax Credit is especially relevant for manufacturers that develop new products, improve processes, or create custom tooling. Engineering, prototyping, testing, and production process development commonly qualify.
State Manufacturing Programs
Texas Enterprise Fund
The TEF has supported manufacturing relocations and expansions with deal-closing grants. Manufacturing projects creating significant jobs and capital investment compete strongly for TEF awards.
Skills Development Fund
Manufacturing is one of the most common industries using Skills Development Fund training grants. Community colleges across Texas partner with manufacturers for customized training in welding, CNC, industrial maintenance, quality control, and safety.
Manufacturing Sales Tax Exemption
Texas provides a sales tax exemption for machinery and equipment used directly in manufacturing. This exemption can represent significant savings on major equipment purchases.
Freeport Exemption
Manufacturers holding raw materials, work-in-process, or finished goods for interstate or international shipment may qualify for property tax exemption under the Freeport provisions.
Equipment and Facility Programs
SBA 504 Loans
The SBA 504 program is well suited for manufacturers purchasing machinery, expanding facilities, or acquiring commercial real estate. Terms include 10% down, fixed rates, and up to 25-year terms for real estate.
TCEQ TERP Grants
Manufacturers operating diesel-powered equipment, generators, or fleet vehicles may qualify for TERP grants covering equipment replacement with cleaner alternatives.
USDA REAP
Rural manufacturers may qualify for REAP grants covering up to 25% of energy efficiency or renewable energy improvements to manufacturing facilities.
Procurement Programs
- HUB certification: Texas manufacturing procurement goals create opportunities for certified businesses.
- Federal supply chain: DOD and other federal agencies actively seek domestic manufacturers.
- SBA Manufacturing 8(a): Qualifying manufacturers may access sole-source contracts up to $4 million.
Manufacturing Day Action Steps
- Contact TMAC: Free assessment of manufacturing improvement opportunities.
- Review R&D Tax Credit: Process improvements and product development may qualify.
- Explore Skills Development Fund: Partner with community colleges for workforce training.
- Check sales tax exemptions: Ensure you are claiming manufacturing equipment exemptions.
- Evaluate SBA 504: Equipment and facility investments may benefit from SBA financing.
Find Programs That May Fit Your Business
Texas manufacturers often qualify for more programs than they realize. Our screening report matches your business against grants, tax credits, loans, and incentives specific to manufacturing. Start your free screening →