How Manufacturers Win on Taxes in 2026

Authored by: Brett Leibfried — Partner, CPA | Date Published: January 26, 2026

Investing millions in new equipment and R&D was supposed to make your manufacturing business grow. When unexpected tax bills from multiple countries land on your table, you watch your hard-earned profits get eaten. Not anymore.

Before this nightmare scenario became a permanent reality for U.S. manufacturers, Congress made an agreement that changed everything. Before tax season arrives, you’ll want to read more about how your business is about to change, for the better.

What Changed for Taxes in 2026?

Finally, 2026 brings good news for manufacturers after months of supply-chain disruptions, delays, and high industry turnover. The U.S. Treasury Department just shielded American manufacturers with its new tax agreement.

If you weren’t up to date on the Organization for Economic Co-Operation and Development (OECD) Pillar Two taxes, manufacturers were facing a global minimum tax of 15% on top of U.S. tax sovereignty because they qualified as large multinational enterprises. But thanks to Congress on January 5th, U.S.-based manufacturers have received relief by recognizing the United States’ tax sovereignty over their worldwide operations.

With all the recent changes that have created shortages, bottlenecks, delays, and other industry issues, this agreement allows U.S. manufacturers to compete on a level playing field, invest in their operations, and hire more workers.

Why the OECD Relief Matters for Your Business

Manufacturers have been waiting for the promise that this taxation would have no effect to be delivered. Now that it’s set in stone, it’s time to recognize the benefits your business will gain.

Let’s look at the three key changes:

Protection from Double Taxation: Your company won’t face overlapping tax obligations from operating in multiple countries, making it easier to compete and invest.
Safeguard R&D Incentives: Valuable U.S. research credits will be preserved to continue encouraging innovation and job creation.
Fair Competition: According to the National Association of Manufacturers, this gives manufacturers a fair chance at competing and investing in operations.

When the NAM President calls this agreement a “massive triumph” for manufacturers, you know that manufacturers are closer to reaching their full business potential. For this industry, growth is looking like an upward tick this year.

Unsure if your business qualifies?

Are You Ready for the 2026 Tax Season?

With these major changes to international taxes, plus existing complexities in manufacturing tax law, now is the time to make sure your tax strategy is optimized.

Manufacturing businesses face unique considerations, including:

Section 179 and bonus depreciation for equipment purchases
R&D tax credits for innovation and development
Domestic production activity deductions
International tax compliance and transfer pricing
Energy-efficient equipment incentives

Read more about checking your 2026 business compliance.

These tax complexities should prompt you to seek professional help. Luckily for you, MBE CPAs has a team of industry specialists who understand your niche challenges. We stay current on tax developments so you can focus on operations without worrying about the incentives you might be missing. Like this 2026 tax change.

By working with MBE, here are the services you’ll gain:

Maximized credits and deductions available to manufacturers.
Compliance support for complex international operations.
Year-round advisory to inform your business decisions.
Preparation for the upcoming tax season with new regulations in mind.

Tax laws affecting manufacturers are constantly evolving, and this recent agreement is just one example of how quickly things can change. Working with an accountant who specializes in manufacturing checks not only your compliance status but also takes advantage of every opportunity to reduce your tax burden.