Tax Break Opportunity for Cobot Implementations



cobot-lathe.jpgIn recent years, collaborative robots – or cobots – have gained much attention and interest for the many benefits they provide to manufacturers of all size and type. Now, manufacturers who implement cobots may be eligible for a significant federal tax deduction to help stretch their equipment budgets while improving production. Learn more about this opportunity below.

At the Michigan Manufacturing Technology Center (The Center), our guiding mission is to help Michigan companies manufacture smarter. As part of this goal, The Center has developed a “Real Factory 4.0” within our Plymouth office, complete with live demonstrations of Industry 4.0 technologies including sensors and IIoT, data and analysis, assistive reality, 3D design and cobotics to give manufacturers a hands-on experience with these technologies.

Each technology in our Real Factory 4.0 is sourced from local technology suppliers when possible, with our cobots coming from Ann Arbor-based Universal Robots. The Center initially invested in the UR5e robot, which is designed to help improve product quality and productivity with intuitive programming, versatile uses and nearly endless opportunities for add-ons. From there, The Center also incorporated the new UR10e robot which promises more performance and productivity, with a higher payload lift and longer reach. This robot is well-suited for a wide range of applications in machine trending, palletizing and packaging, as well as provides a return on investment in just months, not years.

These cobot demonstrations serve to show some of the real benefits manufacturers can realize through implementations, including:

  • Savings in scrap and rework
  • Reduction in inventory
  • Capacity gains
  • Customer retention
  • Improvements in employee engagement and retention, as cobots complete dull, dirty and dangerous jobs and free up workers to focus on more value-added tasks

In addition to these benefits, cobot implementation now can provide manufacturers with even more cost savings through a 100% tax deduction for any equipment that is bought, financed or leased by December 2021.

For those already using cobots, speak with your tax advisor about whether you are eligible for this opportunity. For those still considering investing in cobots, The Center’s Industry 4.0 experts can help your company identify application opportunities and calculate returns using our free Technology Opportunity Assessment. Learn more here or schedule your assessment today by contacting us at

mcgray_m-web.jpgMichael McGray, Advanced Manufacturing Program Manager

For more than 20 years, Michael has focused on finding the best applications of Information Technology to help solve critical business problems. Throughout his career, Michael’s hard work and passion for what he does have allowed him many opportunities to align his core expertise with various business sectors, including finance, marketing, sales and business administration. Now, Michael is ready to work with small and medium-sized manufacturers as they take the next technological leap into Industry 4.0.



Since 1991, the Michigan Manufacturing Technology Center has assisted Michigan’s small and medium-sized businesses to successfully compete and grow. Through personalized services designed to meet the needs of clients, we develop more effective business leaders, drive product and process innovation, promote company-wide operational excellence and foster creative strategies for business growth and greater profitability. Find us at

Categories: Advanced Manufacturing, Industry 4.0, Innovation, Technology