Manufacturing companies take note: How much has the subsidy for laser equipment increased this year?

In 2023, there will be a major adjustment in the subsidies for laser equipment, and manufacturers in many areas will be able to get up to 45 % of the cost of laser processing equipment covered.In this article we will explain changes to the subsidy rate, the qualifications for applying, and other points to keep in mind.

How much have subsidies gone up this year?

Recently many business owners have been asking how much of a subsidy they can get for buying laser cutting machines and welding machines.According to the data we gathered on-site in the Yangtze River Delta and the Pearl River Delta, the proportion of overall subsidies has increased by 8-12 percentage points compared to last year.For example, a city in Jiangsu Province has raised the maximum subsidy it will pay for enterprises purchasing 10,000-watt fiber lasers to 45 % of the purchase price. This is a benefit that would have been unimaginable just a few years ago.

Which companies will reap the benefits of the policy?

They have to pass the tests of registration and tax payment.

First, the company's registered and actual locations must be in the same administrative area, and the company cannot have a history of tax evasion.One of our customers who does sheet metal fabrication was stopped last year for operating outside his zone. You have to pay special attention to this.

There are also special rules for the timing of equipment purchases.

The date of the purchase receipt must be after January 1, 2010, and the product must be recommended by the Ministry of Economic Affairs.Last week, we had a customer who was in a hurry to place an order and wanted us to check whether the model number of the equipment he was interested in was on the subsidy list.

The correct way to apply for a subsidy.

Prepare materials.

Besides the usual business license and proof of tax payment, they also have to submit a description of how the equipment will be used.I suggest that you take photos of the installation site in advance, and if possible also take photos of the production environment. Last year there were companies that had to make three trips back and forth because they didn't have all the documentation.

The process has been made simpler.

This year's biggest change is the introduction of an online preliminary review channel. Applicants can submit their materials electronically on the "Government-Industry Connect" platform, and will receive notification of the preliminary review results within five working days.But I want to remind everyone not to wait until the end of the year to apply in a rush. Last month a company in Dongguan was blocked from applying by a system crash just before the deadline.

How to best use these funds.

Getting the subsidy is not the end, but only the beginning.I suggest that the money saved be invested in employee training or in improving production technology.A car parts factory in Suzhou, for example, used a subsidy to upgrade its air filtration system, and its production yield immediately rose 18 %.Of course, the specific way to plan it out will depend on the actual situation of each enterprise.

These are pitfalls you must avoid.

Recently, some agents have been found charging fees for "guaranteed" applications, when in fact there is no need for third parties to intervene.Also, the subsidy money is always directly deposited in the company's account. If anyone asks you to provide a personal account, they are definitely scammers.Lastly, don't forget to keep the shipping receipt and acceptance record. Last year one company was rejected because it didn't have a receipt.