The Best-Kept Secret: Free Audits Plus $300K to Implement Them
The DOE Industrial Training and Assessment Centers program is one of the least-known federal resources available to manufacturers. Here is what it provides: **Over 50 university-based centers** (plus 5 regional Centers of Excellence) conduct free, in-depth energy and process assessments of manufacturing facilities. The assessments include remote surveys, 1-2 day on-site facility visits, detailed process analysis with specific costed recommendations, and follow-up verification 6-9 months later. It is conducted by engineering faculty and students at no cost to the manufacturer. The numbers: across 21,650+ manufacturers assessed to date, the average assessment identifies **$141,400 in annual savings opportunities** per facility. But the real value is what comes after the assessment. Under BIL Section 40521(b)(3), manufacturers who receive an ITAC assessment (conducted since 2018) can apply for **implementation grants up to $300,000 per qualified recommendation**. Applications are accepted on a rolling basis with quarterly reviews. You get the free audit, then the federal government helps pay to implement the findings. **Eligibility:** Small and medium-sized manufacturers with annual energy bills generally in the $100,000 to $2.5 million range. Revenue and employee thresholds vary by center. **How to apply:** Manufacturers must be registered in SAM.gov for the implementation grant. Find your nearest center at energy.gov/eere/amo/industrial-assessment-centers. Contact them directly to schedule an assessment. The implementation grant application is separate, filed through the EERE eXCHANGE portal.
Manufacturing USA: 18 Institutes, Shared R&D Facilities
Manufacturing USA is a network of **18 public-private institutes**, each focused on a different advanced manufacturing technology. The model lets small manufacturers access cutting-edge R&D infrastructure without building it themselves. **Key institutes by technology area:** | Institute | Location | Focus | |---|---|---| | America Makes | Youngstown, OH | Additive manufacturing (3D printing) | | ARM | Pittsburgh, PA | Robotics and AI | | MxD | Chicago, IL | Digital manufacturing, cybersecurity | | LIFT | Detroit, MI | Lightweight metals | | NextFlex | San Jose, CA | Flexible hybrid electronics | | CESMII | Los Angeles, CA | Smart manufacturing | | CyManII | San Antonio, TX | Manufacturing cybersecurity | | BioMADE | St. Paul, MN | Bioindustrial manufacturing | | REMADE | Rochester, NY | Recycling and circular materials | | NIIMBL | Newark, DE | Biopharmaceutical manufacturing | **The numbers:** Over 2,900 member organizations across all institutes. 73% of the manufacturing members are small manufacturers. More than 920 major R&D projects are active. Over 150,700 people have participated in workforce training. **How it works for small manufacturers:** You join as a member of an individual institute. Benefits include access to shared R&D facilities, collaborative research projects, intellectual property developed through institute work, and workforce training. The model lets a small manufacturer experiment and prototype at institute facilities without disrupting their own production lines. **Federal investment:** $70-120 million per institute over its lifetime, with a required 1:1 non-federal match. In practice, the network achieves nearly 3:1 matching — $307 million in non-federal funds on $109 million in base federal funding in FY2022. Total network investment across all sources: approximately $539 million annually. Membership fees are set by each institute and typically scale by company size. Contact the institute relevant to your technology area directly.
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NIST MEP: 51 Centers, 17:1 ROI
The Manufacturing Extension Partnership is a national network of **51 centers** (one per state plus Puerto Rico) with approximately 460 service locations and 1,440 advisors. It provides cost-shared technical assistance to small and medium-sized manufacturers on everything from production efficiency to cybersecurity compliance. **FY2024 client impact:** $15 billion in new or retained sales, $2.6 billion in cost savings, 108,000 jobs created or retained. An independent study found MEP generates a **17.2:1 return** on the federal government's $175 million investment. **Since 1988:** 150,000+ manufacturers assisted, $96.4 billion in cumulative sales, 1.6 million jobs created or retained. MEP experienced a funding scare in early 2025 when the administration initially declined to renew 10 state contracts (Delaware, Mississippi, Hawaii, Nevada, Iowa, New Mexico, Kansas, North Dakota, Maine, Wyoming). After bipartisan backlash from 80+ House members, funding was restored for a six-month period. Long-term funding stability remains uncertain as remaining state contracts expire in phases through March 2026. **How it works:** Centers operate as a cost-shared partnership — up to 50% federal funding, the rest from state government and industry fees. Centers then provide subsidized consulting to manufacturers. Services include lean manufacturing implementation, quality management systems, supply chain optimization, export assistance, technology scouting, and increasingly, CMMC cybersecurity compliance preparation. **How to connect:** Find your state's MEP center at nist.gov/mep/centers. Services are fee-based but substantially below commercial consulting rates due to the federal subsidy.
NSF Future Manufacturing Grants
The NSF Future Manufacturing program funds research at the intersection of manufacturing innovation and three thrust areas: Cyber Manufacturing (digital/data-driven), Eco Manufacturing (sustainable/resource-efficient), and Biomanufacturing (biological systems). A 2024 update added quantum device manufacturing. **Two tracks:** - **FMRG (Future Manufacturing Research Grants):** Up to $3 million for up to 4 years - **FMSG (Future Manufacturing Seed Grants):** Up to $500,000 for up to 2 years The most recent deadline was June 18, 2025 under solicitation NSF 24-525. As of February 2026, no new solicitation cycle has been announced. Contact the NSF Future Manufacturing program for FY2026 timing. **Eligible applicants:** Universities, nonprofits, for-profit companies, state and local governments, and Tribal Nations. An investigator may only appear as PI, co-PI, or Senior/Key Personnel on one proposal per track per submission year. For broader NSF funding context, see our NSF grants guide.
IRA Manufacturing Tax Credits After the OBBBA
The Inflation Reduction Act created two major manufacturing tax credits. Both survived the One Big Beautiful Bill Act, with modifications. **Section 45X — Advanced Manufacturing Production Credit** A per-unit production credit for domestic manufacturing of clean energy components. Credit rates: $35/kWh for battery cells, $0.04/watt for solar PV cells, 10% of cost for inverters, plus specific rates for wind components and critical minerals. What survived: Solar, battery, critical mineral, and inverter credits remain intact. Phase-out begins in 2030 (unchanged). Credit transferability (the ability to sell credits for cash) survives. The semiconductor/microelectronics credit was actually **increased from 25% to 35%** for property placed in service after December 31, 2025. What changed: Wind component credits are unavailable after December 31, 2027 (accelerated from 2030). New Foreign Entity of Concern (FEOC) restrictions prohibit credits for manufacturers under control of or receiving material assistance from entities in China, Russia, Iran, or North Korea. Treasury must issue FEOC guidance by December 31, 2026. **Section 48C — Qualifying Advanced Energy Project Credit** 30% investment tax credit for facilities that manufacture clean energy equipment, re-equip facilities to reduce greenhouse gas emissions, or install carbon capture. All $10 billion in allocation authority from the two IRA rounds has been awarded to projects across 30+ states. No third round has been announced. **Section 48D — CHIPS Investment Tax Credit** 25% investment tax credit for semiconductor manufacturing facilities. The OBBBA **increased this to 35%** for property placed in service after December 31, 2025. See the CHIPS section below. For full IRA tax credit details, see our IRA clean energy guide.
CHIPS Act: $33 Billion Committed, Disbursements Ongoing
The CHIPS and Science Act of 2022 provided $52.7 billion for semiconductor manufacturing, research, and workforce development. Of that, approximately $39 billion went to direct manufacturing incentives. The Commerce Department has committed $33 billion in grants plus up to $7.15 billion in loans to 35 companies across 52 projects. **Major awards (all finalized late 2024):** | Company | Award | Status | |---|---|---| | TSMC | $11.6 billion (grants + loans) | 3 fabs in Phoenix: first fab (4nm) certified complete June 2025 | | Intel | $7.86 billion (grants) | 2 fabs in Arizona, 2 in Ohio, packaging in NM, R&D in Oregon | | Samsung | $11.15 billion | 2 logic fabs + packaging in Taylor, TX; Austin expansion | | Micron | $6.1 billion | 4-fab facility in NY, 1 in Idaho, modernization in Virginia | | GlobalFoundries | $1.575 billion | New 300mm fab in Malta, NY; Vermont revitalization | Disbursements are milestone-based (tied to construction and hiring benchmarks), meaning much of the $33 billion remains undisbursed as fab construction proceeds. The administration reportedly renegotiated terms with Intel in 2025, converting a portion from grant to equity stake. No finalized award agreements have been rescinded. The semiconductor industry reports over **$640 billion in announced private semiconductor supply chain investments** as of January 2026, attributing much of this to CHIPS Act incentives. For manufacturers in the semiconductor supply chain, the relevant pathway is through Tier 1/2 supplier relationships with CHIPS Act recipients, not direct CHIPS funding. Monitor your regional economic development agency for semiconductor supply chain programs. For critical minerals manufacturing specifically, see our critical minerals guide.
State Manufacturing Programs
States offer the most accessible direct grants for manufacturers. **Maryland Manufacturing 4.0:** Grants for Industry 4.0 technology investments. Small manufacturers (3-50 employees): 75% of project costs covered, $25,000-$500,000. Mid-sized manufacturers (51-250): 50% of costs, same range. 20% of funds reserved for small manufacturers. The 2025 round awarded $5 million to 43 businesses. Application windows typically open in August. **Maryland Build Our Future Grant:** Separate program, $7 million for FY2026. Matching grants up to $2 million per project for strategic industries. **Michigan:** The state helped 100+ manufacturers access $17 million in grants and loans in a single 2025 initiative. DTE Energy and Consumers Energy commit a combined $3.5 billion annually to purchase from Michigan-based businesses. Michigan's Skills Enhancement Fund covers up to 50% of eligible workforce training costs. **How states typically structure these programs:** - Matching grants (most common): State covers 50-75% of project costs for qualifying investments in equipment, automation, robotics, digital systems, and workforce training - Training subsidies: State covers a percentage of employee upskilling costs - Tax credits: Credits against state taxes for qualifying capital investments - Below-market loans: Through state economic development finance authorities Contact your state economic development agency for current manufacturing programs. Programs change annually and are often undersubscribed because manufacturers do not know about them.
DOD Manufacturing Programs
The Department of Defense funds manufacturing technology through its ManTech enterprise and sponsors multiple Manufacturing USA institutes. **DARPA Electronics Resurgence Initiative (ERI):** $1.5 billion commitment for advanced microelectronics manufacturing capability. ERI 2.0 consists of 32 programs with a total cost of $710 million, covering photonics integration, new circuit architectures, and secure fabrication. **DOD additive manufacturing budget:** $970.5 million for FY2026, a 23.1% increase over FY2025. This funds 3D printing technology development and production across all military services. **Defense Production Act Title III:** Gives DOD authority to provide direct loans, loan guarantees, and purchase commitments to expand domestic production of critical defense materials and components. Used recently for domestic nickel-cobalt mine production and munitions manufacturing. An executive order in March 2025 invoked Title III for domestic mineral production. For defense contracting opportunities, see our defense contracts guide. For manufacturers pursuing DOD work, CMMC certification is now required as of November 2025. Small manufacturers may also qualify for SBIR/STTR research grants.