Congress should create a “U.S. Manufacturing Digitalization Investment Fund” that would provide repayable, low-interest loans to American SME manufacturers to help finance upfront investment in digital manufacturing technologies and solutions.

To Do: Provide Loans to SME Manufacturers to Help Finance Digitalization

Congress should quadruple the budget for the Energy Department’s Office of Manufacturing and Energy Supply Chains (MESC) to fund SME digital upgrading.

To Do: Quadruple the Budget for the Office of Manufacturing and Energy Supply Chains

Congress should create a Super CHIPS Tax Credit for advanced-industry R&D and production firms’ purchases of machinery, equipment, and buildings.

Partly Done: Create a Super CHIPS Credit

Congress should pass the Support the Small Business R&D Act to require the Small Business Administration and IRS to expand knowledge-sharing and training on how the R&D an alternative minimum credits work.

To Do: Pass the Support the Small Business R&D Act

The administration should direct the Manufacturing Extension Partnership (MEP) to provide assessment tools to help SME manufacturers identify and close gaps in their digital workflows.

To Do: Provide Assessment Tools to Help SME Manufacturers Digitize

Congress should expand the refundable R&D credit to allow pre-profit start-ups to cover payroll taxes.

Partly Done: Expand the R&D Credit for Pre-Profit Start-Ups

The One Big Beautiful Bill Act, signed into law by President Trump on July 4, 2025, expanded the 48D “Advanced Manufacturing Investment Credit” from 25 percent to 35 percent and extended it to construction that begins by the end of 2026.

Done: Extend the Semiconductor-Sector Investment Credit

Congress should establish an advanced manufacturing scale-up capital program that provides project financing and associated assistance through grants, loans, loan guarantees, and other instruments.

To Do: Establish an Advanced Manufacturing Scale-Up Capital Program

Congress should allocate funds for the departments of State and Commerce to educate developing nations on digital regulation and its repercussions.

To Do: Create Tax Credits for SME and Supplier Digitalization

Recommendation

Details

Editors’ Recommendations

Accelerating Digital Technology Adoption Among U.S. Small and Medium-Sized Manufacturers

Related

To Do: Provide Loans to SME Manufacturers to Help Finance Digitalization

To Do: Quadruple the Budget for the Office of Manufacturing and Energy Supply Chains

Partly Done: Create a Super CHIPS Credit