Since Jan. 2023, when we published the first edition of this guide to US government grants that help small and medium-sized manufacturers (SMMs) invest in digital technology, funding opportunities have expanded significantly. A sizable portion of the Biden Administration’s $1.1 trillion funding for climate, infrastructure, semiconductor, and pandemic relief has been directed toward manufacturing modernization. According to a Politico report, as of April 2024, 17 percent of the $1.1 trillion has reached spending entities such as manufacturers, universities, states, and municipalities. Assuming the funding programs remain intact in the next administration, we can expect many more years of Federal assistance to manufacturers, much of which filters down to state programs.
In this report, we have updated our survey of grants that help smaller manufacturers transition to Industry 4.0. We focus primarily on state grant programs for IT purchases, but also cover Federal grants and federal and state tax breaks, loans, and training and consulting services for SMMs. In this edition, our guide to state funding has expanded to provide resource summaries and links for all 50 states (see farther below).
We expanded the list because even if a state does not provide state grants for IT purchases now, the continuing influx of Federal funds will likely encourage many to do so in the future. Unlike federal grant agencies, state governments are not necessarily required to pre-publish upcoming grant solicitations, so it is important to check their website regularly so you do not miss out.
The increase in public funding has encouraged more private investments in US manufacturing. The motivations for onshoring include supply chain problems, trade wars, and the market entry opportunities for newer industries such as clean energy, EVs, novel materials, and additive manufacturing.
The US government is taking a more active role in helping manufacturers upgrade to Industry 4.0. (image created with Stable Diffusion)
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The Many Colors Of Free Money
Most manufacturing grants support R&D, which apply only to tech purchases devoted to the development of innovative new products or processes. On the federal level, the chief R&D program for manufacturers is Small Business Innovation Research (SBIR). A similar Small Business Technology Transfer (STTR) program requires collaboration with a university or research center. Many states also offer their own R&D investment programs, most of which require prior funding from SBIR.
Most government grants are awarded competitively, so you will need to make a compelling case. Other requirements often include matching funds from the manufacturer, state residency for a minimum number of years, and size and revenue requirements below and/or above certain thresholds.
One hidden cost is the need to fill out a lot of forms, especially for federal grants. Many of the state grants are offered through manufacturing innovation centers and extension programs that can help you with the applications. These centers can also save SMMs money through free or low-cost training or consulting.
Some programs target specific industries. For example, many grants are aimed at manufacturers of clean energy products, financed in large part by the Inflation Reduction Act, or semiconductors, financed by the Chips and Science Act. Federal infrastructure funding can indirectly benefit manufacturers that make infrastructure related products. Some funds aimed at supply chain resiliency can also be applied to improving manufacturing productivity.
There are many US, state, NGO, and corporate grants and loans intended for small businesses located in low-income areas or owned by minorities or women. Some grants and loans target manufacturing startups while others are designed to lure companies from other states and countries. There are also federal and state programs for small businesses in general, typically focused on job training, as well as collaborative programs between universities and manufacturers in the same state, often drawing upon federal funding.
This report does detail all the tax credits offered by federal and state governments that encourage manufacturing modernization. Yet, they can be significant. As this May 2024 IndustryWeek story reports, the IRA offers major tax breaks for investments such as adding solar panels. The tax breaks can often be transferred to investors.
US Federal Grants for Manufacturers
One major new federal offering since our last roundup is the $22 million in funding from the federal Bipartisan Infrastructure Law (BIL) for a State Manufacturing Leadership Program (SMLP). Administered by the U.S. Department of Energy (DOE), the program helps SMMs acquire smart manufacturing technologies, high-performance computing, and data-driven tools and technologies while also encouraging reductions in harmful emissions. So far, 12 states have received funds (see state summaries farther below).
The DOE’s Office of Manufacturing and Energy Supply Chains (MESC) oversees over $20 billion in grants to manufacturers and university innovation centers to boost clean energy technologies such as batteries and critical materials. This DOE resource page lists other programs aimed at manufacturers.
The US Chamber of Commerce’s Economic Development Administration (EDA) offers a variety of programs that distribute funds from the American Rescue Plan (AKA Build Back Better). The Chamber of Commerce publishes a guide to grants, loans, and other resources for small businesses. You can also search Grants.gov for information on specific grants and check out Manufacturing.gov and USGrants.org for overviews of federal programs.
SBIR and STTR are the major federal R&D grant programs. SBIR offers a Federal and State Technology (FAST) Partnership Program with over 40 participating states.
The National Institute of Standards and Technology (NIST) sponsors Manufacturing USA, an organization that comprises 16 regional centers that assist 2,300 member organizations. Manufacturers represent 63% of those members, and 72% are small manufacturers. Manufacturing USA collaborates on over 670 major technology and workforce R&D projects, engages over 106,000 people in advanced manufacturing training, and invests $416M in these activities from state, industry, and federal funds.
In March 2024, NIST announced an open competition for a new Manufacturing USA institute focused on using AI in manufacturing. NIST anticipates that $70 million in federal funds will be invested in the institute over five years, along with matching funding from private and other funding sources. NIST expects to open an AI for Resilient Manufacturing competition in early spring 2024, which will be announced on NIST’s Office of Advanced Manufacturing site.
Manufacturing Extension Partnership (MEP) is another NIST-hosted organization. This public-private partnership for SMMs hosts MEP Centers in all 50 states and Puerto Rico. In 2021, MEP Centers were said to have interacted with 34,307 manufacturers, leading to $14.4 billion in sales, $1.5B in cost savings, and $5.2B in new client investments. They also helped create or retain 125,746 jobs.
The Department of Defense sponsors an innovation center for manufacturers called MxD. The website lists no grants, but MxD provides “partnerships” with 300 companies.
State Manufacturing Resources
This guide to state funding for manufacturers focuses primarily on grant assistance to SMMs for digital transformation. Yet, we also list other programs for SMMs. Note that the funding landscape changes frequently. New programs are coming online as others run through their budgets and await new funding. The 19 states with underlined text offer direct grants for smart manufacturing purchases. These include the 12 states that are distributing federal SMLP funds, many of which also offer their own grant programs.
Jump to your state:Alabama, Alaska, Arizona, Arkansas, California, Colorado, Connecticut, Delaware, Florida, Georgia, Hawaii, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Missouri, Montana, Nebraska, Nevada, New Hampshire, New Jersey, New Mexico, New York, North Carolina, North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, South Carolina, South Dakota, Tennessee, Texas, Utah, Vermont, Virginia, Washington, West Virginia, Wisconsin, Wyoming
Alabama
Alabama – Alabama provides manufacturers with tax credits and other incentives, but does not appear to offer direct state grants for smart manufacturing. The Innovative Alabama Supplemental Grant Program, however, provides supplemental funding to companies that have an active SBIR or STTR federal grant for R&D. There is also a new $30M funding program for industrial site development.
Alaska
Alaska – The Alaska Center for Innovation Commercialization and Entrepreneurship (Center ICE) hosts Alaska FAST, an SBIR R&D support program that provides wrap-around services such as grant matching and proposal submission and execution assistance. Center ICE also offers a variety of industry/academia partnerships. We saw no state programs for smart manufacturing purchases. Federal grants available in Alaska may be found at this Alaska Federal Funding page.
Arizona
Arizona – There does not appear to be any state funding for smart manufacturing. However, the Arizona Commerce Authority and Arizona State University have partnered to provide an Arizona Advanced Manufacturing Facilities Grant of up to $75K per company for startups in the semiconductor and hard materials space. Other Commerce Authority programs include a Venture Ready Accelerator, an Arizona Innovation Challenge, and more. The federal Chips & Science Act is heavily investing in Arizona microchip fabs, including an $8.5B investment in Intel and a $6.6 billion investment in TSMC. Smaller manufacturing partners of these recipients are likely to benefit.
Arkansas
Arkansas – We saw no direct Arkansas grants for smart manufacturing. However, there is a Technology Transfer Assistance Grant Program with up to $5K funding for the transfer and deployment of innovative technology between Arkansas-based organizations. More information on Arkansas small business funding may be found here.
California
California – California offers numerous state and university-associated programs for manufacturers, most of which fall under the umbrella of CMTC (California Manufacturing Technology Consulting) and its CMN (California´s Manufacturing Network). CMTC is primarily a consultant, helping manufacturers transition to smart and lean manufacturing processes. The organization provides an Advanced Manufacturing Technology Services – Technology Assistance Services (AMTS – TAS) program that funds pilot programs for Industry 4.0 technology adoption. In Feb. 2024 CMTC launched California's Sourcing & Procurement Platform (CSPP), a digital marketplace designed for manufacturers. Also under the CMTC’s overview is the California Network for Manufacturing Innovation (CNMI) for SMMs.
Colorado
Colorado – The state’s Advanced Industries Accelerator Programs include an Early-Stage Capital and Retention Grant for up to $250K, as well as other programs designed to “support job creation and innovation” for advanced industries, including “advanced manufacturing.” More Colorado state grants for businesses may be found at the Colorado Office of Economic Development and International Trade.
Connecticut
Connecticut — The Nutmeg State offers a $75M Manufacturing Innovation Fund via the Connecticut Department of Economic & Community Development and AdvanceCT that includes matching funds for federal R&D grants and training services. There is also an Industry 4.0 IoT Integration Voucher Program (IVP), which awards grants of up to $25K for obtaining “new equipment and the expertise they need to become more efficient, productive, and competitive.” IVP is administered by the Connecticut Center for Advanced Technology, Inc. (CCAT), which offers consulting, training, and technology demonstrations. State funding for Connecticut’s manufacturing innovation programs was refreshed in 2023. The state is one of 12 to receive federal SMLP funding for manufacturing modernization.
Delaware
Delaware – Delaware sponsors the Delaware Manufacturing Extension Partnership (DEMEP), which offers consulting and training services for “lean enterprise, quality management and top line growth.” We saw no state grants for smart manufacturing.
Florida
Florida – Florida does not appear to offer smart manufacturing funding. However, in Jan. 2023, the Florida Department of Economic Opportunity (DEO) announced that $142 million in new capital would be available for small businesses and startups through Florida’s State Small Business Credit Initiative (SSBCI). There is also a High Impact Business Performance Incentive Grant for businesses that are expanding or relocating to Florida.
Georgia
Georgia – The Peach State sponsors the Georgia Center of Innovation, which delivers consulting and training services to manufacturers. Quick Start, a division of the Technical College System of Georgia, has established a Georgia Advanced Manufacturing Center near Savannah that provides local manufacturers with customized workforce training. There is also a state R&D tax credit that might apply to some IIoT projects.
Hawaii
Hawaii – The HTDC and Hawaiʻi Technology Development Corporation has established an 80/80 Initiative for creating tech jobs that includes a MAP program with 20% matching grants up to 100K for manufacturers to upgrade equipment, train employees, and initiate energy efficiency projects and manufacturing feasibility studies. 80/80 also awards matching grants of up to 50% for recipients of SBIR federal R&D grants. Hawaii is one of 12 states to receive SMLP funding for smart manufacturing purchases, receiving just over $1M in funding. The program is being led by Innovate Hawaii.
Idaho
Idaho – Idaho does not offer state manufacturing grants aside from STEP grants for export promotion. The state’s workforce training funds and other programs for small businesses are detailed on this Idaho Commerce grants page, this NorthwestTAAC site, and this TechHelp guide. TechHelp, sponsored by the Idaho state university system, provides consulting services to Idaho manufacturers, including lean manufacturing assistance.
Illinois
Illinois – In May 2024, the Illinois Department of Commerce and Economic Opportunity (DCEO) and the Illinois Manufacturing Excellence Center (IMEC) awarded $1.7 million in grant funding to 40 SMMs through the new Made in Illinois Grant Program. The program provides up to $50K in matching funding to Illinois manufacturers to support innovation and strategic advancements in manufacturing. Illinois also provides R&D grants with requirements that are similar to the federal SBIR program.
Indiana
Indiana — The Indiana Economic Development Corp.(IEDC) and the state-associated, nonprofit Conexus Indiana organization run a Manufacturing Readiness Grants program for purchasing IIoT and other digital manufacturing solutions including machine vision and cloud analytics. The program has granted 526 grants totalling $57M since it launched in 2020.
Iowa
Iowa – Iowa provides a Manufacturing IIoT Infrastructure Investment Grant program for up to $25K to purchase Industry 4.0 hardware or software to improve IIoT, cybersecurity, data analytics, visualization and more. There is also a hardware-only Manufacturing Innovation Equipment Grants program for up to $50K grants “aimed at helping manufacturers increase productivity, efficiency and competitiveness.” Iowa is one of 12 federal SMLP recipients of smart manufacturing funding, receiving $2M that will be distributed through the Iowa Economic Development Authority.
Kansas
Kansas – In 2022, Kansas launched a Small Business R&D Acceleration Grants program for up to $25K R&D funding to match university R&D grants. SwiftOtter lists several other Kansas funding opportunities for small businesses, including training support progams and a High Performance Incentive Program (HPIP) aimed primarily at manufacturers. HPIP offers a 10% tax credit of at least $50K (or $1M in some counties) that covers new equipment and software purchases. There does not appear to be any direct funding for IT purchases, however. More information may be found at this Kansas business funding page.
Kentucky
Kentucky – The Bluegrass State promotes a variety of tax incentive and loan programs for small businesses, but supplies no direct funding for smart manufacturing purchases. More information may be found on this Kentucky Business Incentives page and this Resolve report on Kentucky business funding.
Louisiana
Louisiana – The Bayou State offers a general R&D tax credit for small businesses, but we saw no smart manufacturing funding. There are two tech innovation centers that deliver consulting and training services: The Cyber Innovation Center and LSU Innovation Park.
Maine
Maine – Maine provides several training and consulting programs for small businesses, including Maine MEP (Manufacturing Extension Partnership), whose services include SBIR funding assistance. More programs can be found at the Finance Authority of Maine (FAME) website. However, we saw no direct grants for smart manufacturing purchases.
Maryland
Maryland – The Maryland Manufacturing 4.0 grant program funds grants of $25K to $500K to Maryland SMMs to invest in Industry 4.0-related technologies, including big data and analytics, machinery and robotics, and digital business solutions. The pilot program was funded at $1M in the state’s fiscal year 2023 budget. Maryland also has an R&D tax credit and multiple tech innovation centers. The state is one of 12 to receive federal SMLP funding for smart manufacturing, receiving $1,010,000 that will be dispersed by Maryland MADE 4.0.
Massachusetts
Massachusetts — The Massachusetts Manufacturing Accelerate Program (MMAP) provides consulting and training services, as well as up to 200K per manufacturer matching grants for digital manufacturing purchases. Participants must prove they will create new jobs and “demonstrate operational improvements, efficiencies, and progression towards Industry 4.0.” In 2022, MMAP awarded more than $5.5M to 28 manufacturers. A Massachusetts Manufacturing Innovation Initiative (M2I2) R&D grant program has provided over $86M in grant funding to 90 organizations to “help Massachusetts organizations transition their technologies to manufacturing.” The state’s Center for Manufacturing Technology (CMT) focuses on training.
Michigan
Michigan – The Michigan Economic Development Corporation (MEDC) hosts a $3M Industry 4.0 Technology Implementation Grant matching grant program to help manufacturers adopt Industry 4.0 technologies. The grants cover up to 50 percent of technology purchases of up to $25K. Eligible technologies include additive manufacturing, artificial intelligence, cybersecurity, robotics, and automation. The Michigan Manufacturing Technology Center provides training grants, including a Global Epicenter of Mobility (GEM) initiative with $52.2M in grants to companies working in the mobility and transportation sector. Michigan is a recipient of federal SMLP funding for smart manufacturing, receiving $2M that will be dispersed by the Michigan Strategic Fund.
Minnesota
Minnesota – The Launch MN Innovations Grants program is not specific to manufacturers, but includes many manufacturers on the 2022 awards list of recipients for $386K of funding. The “Business Operations” part of the funding program provides each participant up to $35K for business operations including R&D, direct business expenses, and technical assistance. The total program, which also includes SBIR/STTR Matching Grants up to $50K for R&D, has so far released $8.2M to 247 startups. The 2023 Minnesota Legislature reauthorized the program and funded it at $3 million – $1.5 million for each fiscal year 2024 and 2025.
Mississippi
Mississippi – The state provides several small business loan programs, as detailed on this Gusto page. The big funding news this year was the injection of almost $1M of state funds in the Site Development Grant Program for property development. More funds are coming from the feds, including a $2.1M Commerce Department Economic Development Administration (EDA) grant to the town of Clarksdale for infrastructure investments that support manufacturing. We saw no grants for smart manufacturing investments.
Missouri
Missouri – The Show Me State offers several business loan programs, as detailed in this Gusto report, but no direct grants for manufacturers. In 2023, almost $15M was set aside for a Advanced Manufacturing Resiliency Grant Program that serves manufacturers that produce products that support national security. However, we saw no sign that the grant program has been renewed for 2024. This year, the DOD funded a Missouri Defense Manufacturing Consortium with $5M to modernize defense industry manufacturers. More resources may be found at the Missouri Association of Manufacturers website.
Montana
Montana – In Nov. 2023, the Montana Department of Environmental Quality (DEQ) announced it was receiving a $2M grant from the US DOE’s State Manufacturing Leadership Program. DEQ, in partnership with the Montana Manufacturing Extension Center (MMEC) and Highlands College, is using the funds to launch a Smart Manufacturing Technologies Outreach Initiative. The funds will support smart manufacturing tech purchases to help manufacturers streamline operations, reduce energy consumption, and reduce costs. Montana also provides an Automation Loan Program that will pay for 50% of the purchase price of automation equipment, not to exceed $500,000, matched with a standard automation loan from a primary lender. Other Montana programs for manufacturers may be found here.
Nebraska
Nebraska – The Nebraska Business Innovation Act (BIA) funds the Nebraska Department of Economic Development to support programs such as SBIR/STTR assistance, seed funding, and a prototype funding program. Other state programs include the Nebraska Small Business Assistance Act Program, which supports funding through the GROW Nebraska non-profit consultancy organizations. We saw no direct grants for smart manufacturing.
Nevada
Nevada – Nevada Grant Lab lists a variety of state grants, none of which appear to support manufacturing modernization. More resources may be found at the Nevada SBCD site and this Resolve summary page.
New Hampshire
New Hampshire – The New Hampshire Department of Business and Economic Affairs (BEA) manages a few grants such as a $1.5M grant for the Paper and Pulp industry that supports equipment purchases. The big funding news for Granite State manufacturers was the May 2023 announcement of a $400K federal NIST MEP grant for improving the supply chain, which is being managed by the NH Manufacturing Extension Partnership (NHMEP). NHMEP hosts other programs such as a Sector Partnerships Initiative to help manufacturers with hiring.
New Jersey
New Jersey – The New Jersey Manufacturing Voucher Program (MVP) is administered by the New Jersey Economic Development Authority. This $20M program provides grants up to $250K for hardware purchases. A more recent MVP Phase II offering has stopped accepting applications. It is unclear if there will be a Phase III program.
New Mexico
New Mexico – The Land of Enchantment offers many grants and tax credits to small businesses, but nothing specific to IT equipment purchases for manufacturers. Intel, however, received federal Chips and Science Act funding for improvements to New Mexico semiconductor operations, and five clean energy manufacturers were recently awarded over $1M each of DOE Phase II SBIR/STTR funding. There are also tax credits to help high-technology research or manufacturing operations, including an investment credit, angel investment credit, alternative energy credit, and an R&D credit.
New York
New York – The Empire State´s Center for Economic Growth (CEG) dispenses grants including National Grid’s Manufacturing Productivity Program (MPP). MPP supports lean manufacturing or manufacturing assistance projects that result in eliminating waste and increasing productivity. Awardees receive a 40% reimbursement of costs up to $15K. For example, MPP grants of up to $40K are available to Finger Lakes Region Manufacturers that improve productivity, add growth or both. Grants can be applied to “lean manufacturing or manufacturing assistance projects that result in eliminating waste & increasing productivity on the shop floor…” CEG also hosts the NYSEG Manufacturing Accelerator Program (MAP). The program offers matching grants up to the lesser of $15K or 40% of the costs aimed at productivity improvement. Projects include Lean manufacturing, Lean office procedures, waste reduction, ISO quality programs, “and other projects that lower costs, improve quality and reduce lead times.” There are also numerous innovation centers in New York, such as the CATs automation innovation centers. CATs is one of several programs sponsored by NYSTAR, which also hosts a Manufacturing Extension Partnership program. CEG provides the Fuzehub Jeff Lawrence Innovation Fund, which invests more than $1M in New York manufacturing, including a grant fund that can be used for “adoption of new technology to enhance a process and/or product.”
North Carolina
North Carolina – The Tar Heel State provides many tax exemptions and grant programs, most of which are aimed at job creation. North Carolina has received $1,946,320 in SMLP grant funds for smart manufacturing purchases, distributed through the NC Department of Commerce. The state also provides a technology oriented One NC Small Business Program, which matches SBIR/STTR funds for “capital-intensive, high-risk industries in science, technology, engineering and math.” There are also several innovation centers including the North Carolina Biotechnology Center, the Polymers Center, and the textile focused Manufacturing Solutions Center.
North Dakota
North Dakota – In Mar, 2024, the North Dakota Department of Commerce announced an Automate ND Grant Program that will cover up to 50% of the cost of purchasing or leasing machinery, equipment and software for manufacturing automation projects. Funded with $5M from the federal, pandemic relief focused American Rescue Plan Act (ARPA), Automate ND will award grants of up to $500K. Other resources for North Dakota businesses may be found here.
Ohio
Ohio – This industrial powerhouse has received $2M in SMLP smart manufacturing funding distributed through the Ohio Smart and Clean Manufacturing Leadership Program. The state also hosts Ohio MEP, a partnership with NIST’s federal MEP program. Ohio MEP primarily applies to training and consulting, but also collaborates with Magnet’s Advanced Manufacturing Fund, which helps Ohio manufacturing startups “bridge the early gap in their funding needs.” The Buckeye State also offers an R&D investment loan fund up to $5M. The Innovation Ohio Loan Fund finances up to 75% of allowable project costs, with loans typically ranging from $500K to $1.5M. Eligible projects include manufacturing.
Oklahoma
Oklahoma – The Sooner State provides more than the usual R&D spending, and it’s on the rise. Yet we saw no specific grants for IT expenditures. In 2021, the state launched the Oklahoma Innovation Expansion Program, which supplies up to $15M to manufacturers for capital investment projects. There is also a $5M Oklahoma Manufacturing Reboot Program for pandemic recovery. (It is unclear if it will be renewed.) The Oklahoma Manufacturing Alliance recently received a two-year, $400,000 federal MEP grant to help optimize local supply chains.
Oregon
Oregon – We saw no Oregon grants that specifically support manufacturing IT purchases. However, Oregon offers an Industrial Development Bonds program for value-added manufacturing projects. Oregon is home to OMEP (Oregon Manufacturing Extension Partnership), which hosts a tech lab and offers free consulting services focused on Lean practices. Manufacturers can also seek help from the Oregon Manufacturing Innovation Center (OMIC), an R&D collaboration between industry, academia, and government to support applied research such as concept design, prototyping, third-party unbiased product testing, and development of innovative manufacturing methods. Finally, for smaller semiconductor manufacturers (i.e., not Intel), the State of Oregon CHIPS Manufacturing & Research program provides grants of up to $50K to organizations that plan to apply for federal CHIPS funding.
Pennsylvania
Pennsylvania – The Catalyst Connection, a non-profit backed in part by NIST and the State of Pennsylvania, has established a Digital Bridge Initiative that offers multiple services that promote “Industry 4.0 technologies in products, processes, logistics, and human resources.” These include up to $35K in funding via matching funds from the Economic Development Administration and Build Back Better (BBB) initiative, including a $10K fund that provides “technical assistance for assessment and evaluation of Industry 4.0 investments and advanced manufacturing technologies.” The Catalyst Connection also provides services including clean energy manufacturing funding up to $10K, a Maker-to-Manufacturing Commercialization Center, and a Manufacturing Technology Loan Fund (MTLF). Pennsylvania hosts a Pennsylvania First Program (PA First) that offers funding to businesses, municipalities, and state agencies to support equipment purchases, as well as a Manufacturing PA Initiative focused primarily on training. Finally, Pennsylvania is receiving $2M in SMLP smart manufacturing funding distributed through the Smart Manufacturing and Advanced Retooling Team for Pennsylvania (SMART PA).
Rhode Island
Rhode Island – Polaris MEP, a non-profit consulting and training organization for Rhode Island manufacturers, offers several funding programs for SMMs. The organization, which is also a NIST MEP affiliate and a business unit of the University of Rhode Island Research Foundation, funds programs such as RI Made, which awards up to $50K, DOD-funded grants to small manufacturers that are part of the defense manufacturing ecosystem. The state is set to receive just shy of $2M in SMLP smart manufacturing funding distributed through the Rhode Island Commerce Corporation and involving Polaris MEP and other organizations. In 2023, Polaris MEP received $400K in CHIPS and Science Act funding to expand supply chain services, including providing manufacturers with “technology scouting, acceleration and deployment support to improve production.” A state-funded STAC Innovate RI Fund helps start-ups defray the costs of applying for federal SBIR/STTR R&D grants and to match Phase I and Phase II awards. Finally, Rhode Island is home to the tech-oriented 401 Tech Bridge incubator and facilitator for SMMs.
South Carolina
South Carolina – The South Carolina Commerce Department oversees several programs for SMMs. Its Catalyst program offers SMMs in the DOD ecosystem assistance with implementing “Advanced Manufacturing Technologies (AMT), Quality Management Systems (QMSs), and Lean Manufacturing tools and techniques,” and provides funding for purchases of QMS and lean manufacturing technologies. There is also an R&D focused Innovation project that supports innovative startups with SBIR/STTR grant support and investment assistance. South Carolina is home to the South Carolina Manufacturing Extension Partnership (SCMEP), which provides free consulting to SMMs on lean manufacturing, quality/Six Sigma, and more. The state also provides an R&D tax credit, as well as various grants to small businesses that are primarily aimed at land acquisition and workforce development.
South Dakota
South Dakota – South Dakota Manufacturing & Technology Solutions (MTS), which is partially funded by NIST MEP, offers consulting services to SD SMMs, including consulting on automation projects. The state has various tax credits and financing programs for industry, including a GOED loan program that recently authorized $9.7M in loans to SMMs. However, there do not appear to be any specific grants for IT purchases. More information can be found in this Gusto report.
Tennessee
Tennessee – Fund Tennessee manages a variety of grants and resources as part of the federal SSBCI (State Small Business and Credit Initiative) program, including InvestTN (equity investment), LendTN (loans), and AssistTN (consulting). We saw no direct investments for manufacturing IT purchases. More state grant funding resources may be found here.
Texas
Texas – The Lonestar State provides a variety of investment incentives, but none appear to be specific to IT spending for manufacturing. Texas offers an R&D tax credit that applies to software and other technology used for R&D. In June 2023, the state launched a $1.4 billion Texas CHIPS Act (PDF) that applies federal Chips Act funds to microchip R&D funding in the state. The Texas Economic Development Corp. hosts an Advanced Manufacturing in Texas site that offers more information on funding. Tech innovation centers are located in Austin, Houston, and other cities.
Utah
Utah – Utah provides state grants including an Industrial Assistance account (mostly for rural economic development) and a Utah Tech Innovation Funding for small companies developing novel tech. It is unclear if we will see a return of the $10M Utah Manufacturing Modernization Grant, which applied to establishing new factories and modernizing old ones.
Vermont
Vermont – A variety of tax breaks and incentive programs for industry include an R&D credit, but we saw no specific funding for technology purchases. Vermont hosts several innovation centers, including VMEC (Vermont Manufacturing Extension Center), which offers free or low-cost consulting and training, with a focus on lean techniques. In 2023, VMEC received $400K in funding from NIST MEP to improve the manufacturing supply chain, which also applies to consulting for manufacturing modernization. The Vermont Seed Capital Fund hosts a VCET investment consulting program for entrepreneurs in general.
Virginia
Virginia – The state is receiving $2M in SMLP smart manufacturing funding distributed through the Virginia SMART Manufacturing Accelerator (VSMA). There is also a Virginia Investment Partnership grant program that awards discretionary performance incentives to larger manufacturing companies that are increasing productivity, modernizing, or creating, developing, or utilizing advanced technology. Many of Virginia’s business investment programs are aimed at relocating businesses to the state, such as the Virginia Economic Development Partnership (VEDP), which awards a Virginia Investment Performance Grant (VIP) for manufacturers and R&D companies for adding “capacity, modernization, increased productivity, or the creation, development, and utilization of advanced technology.” Companies must prove active competition for the project from another state or country. Other funding opportunities are available from Virginia SBDC, an organization of 26 local Small Business Development Center offices. Virginia also provides industrial tax credits and grants including R&D tax credits and sales tax exemptions for manufacturing equipment and software. There is also a privately financed Go Virginia program for business/government collaboration that offers several grant programs.
Washington
Washington – Despite the state’s reputation for high technology, we saw no IT specific funding for manufacturers.The state hosts an Evergreen Manufacturing Growth Grants program that offers $2 million in grants for manufacturing and R&D businesses that can promise significant job growth, as well as the potential to spur technological advances. The grant supports companies delivering “a significant business expansion or proposed cutting-edge development work.” Impact Washington is a non-profit organization affiliated with NIST MEP that offers grants including a Small Manufacturers Growth and Support Grant for consulting and training expenses. Washington is home to multiple innovation centers, and offers a Manufacturing Machinery and Equipment sales and use tax exemption for testing operations and R&D.
West Virginia
West Virginia – The state provides several industrial tax credits and grant programs, but nothing specific to manufacturing IT purchases. More funding opportunities may be found on this WV Grants page.
Wisconsin
Wisconsin – The Wisconsin Economic Development Corporation (WEDC) hosts innovation centers, investment programs, consulting services, and technology development loans. We saw no specific grants for purchasing technology, however. In March, the Department of Workforce Development (DWD) announced almost $4 million in Wisconsin Fast Forward worker training grants. More resources for Wisconsin grants and loans can be found at the Wisconsin Technology Council.
Wyoming
Wyoming – The Impact 307 incubator network offers a network of centers with incubator and consulting services. More grant resources may be found at the Wyoming Business Council. However, we saw nothing specific to smart manufacturing technology.
Guides And Reports On Manufacturing Grants
One of the best public sources we found for tracking state resources for manufacturers comes from the Reshoring Institute.
California´s CMTC (California Manufacturing Technology Consulting) extension organization has published a guide to applying to US manufacturing grants.
Lakeview Consulting offers an overview of state and federal manufacturing grants.
Resolve, a B2B commerce company, has posted numerous profiles of state funding resources for businesses.
Gusto, a payroll services company, offers state resource guides for businesses.
Please inform us about any major grant programs or other resources for SMMs that we may have missed on our contact page.
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