Domestic Production Activities Deduction
Starting with tax year 2005, certain companies can take a 3% deduction for US-based business activities.
“Every small business is the manufacturing industry should be looking at this as a tax deduction. While Section 199 comes with a very complex set of rules, chances are small businesses will qualify for the deduction much easier than the rules depict,”
Paul Schlather, a senior tax partner with PricewaterhouseCoopers’ Private Company Services practice.
The Interest Charge Domestic International Sales Corporation (IC-DISC) provides a 20% tax savings for qualifying U.S. exporters. The IC-DISC is an entity which serves as a vehicle for export tax savings.
Schedule a free tax consultation to see how you can qualify for these and other tax breaks.