Did you know that there is a tax break called the Production Deduction that benefits companies that manufacture products domestically?
It is called the DPAD or Section IRC 199. This deduction gives a qualified taxpayer a tax break of 9% of its taxable income. It was instituted by the American Jobs Creation Act in 2004 and is often referred to as the “domestic manufacturing deduction.”
In a nutshell, if you are a manufacturer, with certain qualifiers, 9% of your income could be nontaxable.
Large companies have been taking advantage of this deduction for years, but smaller manufacturers and their CPA’s may have overlooked it.
Here is a link to a site with more information:
Be sure to contact your CPA as soon as possible to see if you qualify for this beneficial deduction!