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Midsized manufacturing companies

Finding essential tax credits for manufacturers

$
in tax credits received within two months of application

Two manufacturing companies were trying to manage cash flow during the COVID-19 pandemic — and feeling the sting of supply chain closures. As their long-time tax and financial advisor, Wipfli helped the companies calculate the impact and apply for qualifying tax credits.

The Challenge

A slowdown in materials disrupted production and delayed projects for two midsized manufacturing companies. They were stretched thin and forced to lean on lines of credit to meet essential cash flow needs.

The Solution

The employee retention tax credit (ERC) was expanded during the second round of stimulus funding. Some businesses that received Paycheck Protection Program (PPP) funds became eligible to claim the ERC retroactively. Wipfli alerted its clients to the change and calculated the financial impact of closures and quarantines to determine their eligibility. Then the firm prepared and submitted the requests.

We’re grateful to Wipfli for alerting us to the ERC opportunity. These funds and PPP loans have made a considerable difference in helping bridge our cash flow gaps during the pandemic. This effort is one of many proactive efforts Wipfli has delivered over 23 years as our invaluable finance consultant.
CEO of a midsized manufacturing company

The results

Due to temporary material shortages, the manufacturers qualified for the ERC in Q1 2021 — and claimed over $650,000 in tax credits. They received the funds within two months of application. And with the ERC, businesses were not required to pay back tax credits or track spending.

Services Engaged

Tax services
Tax
Tax credits and incentives
Tax credits and incentives