The “manufacturers’ deduction” isn’t just for manufacturers

The Section 199 deduction is often referred to as the “manufacturers’ deduction” because it’s intended to encourage domestic manufacturing. But construction, engineering, architecture, computer software production and agricultural processing businesses also may be eligible. The deduction is 9% of the lesser of qualified production activities income or taxable income, limited to 50% of W-2 wages that are allocable to domestic production gross receipts. Contact us to learn whether you can save tax with this deduction when you file your 2016 return.

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