Domestic Production Deduction
If your business is engaged in a qualifying production activity you may be able to take a tax deduction for your U.S. based business activities. The deduction is limited to income arising from qualified production activities in whole or in part based in the United States. The following are qualified production activities.
Manufacturing based in the United States, Selling, leasing, or licensing items that have been manufactured in the United States, Selling, Leasing, or licensing motion pictures that have been produced in the United States, Construction services in the United States, including building and renovation of residential and commercial properties, Engineering and architectural services relating to a US-based construction project, Software development in the United States, including the development of video games.
If you have a business that falls into any of these categories and you are not looking at this deduction, you could be missing out on a valuable tax break. Contact us to see if this deduction is for you.