Congress often tinkers with the tax code, but rarely does it throw business owners a brand-new deduction. That's why last year's tax law—the American Jobs Creation Act— created such a stir. Starting in 2005, the law authorizes a new write-off for qualified manufacturers that could eventually amount to a 3 percent rate cut.
Best of all, the deduction isn't just for traditional manufacturers. It's available to many other businesses that you wouldn't think of as "manufacturers"—maybe even yours. Here's a primer on how the new deduction works and what you can do to maximize the tax payoff.
Who can qualify for the deduction?
To qualify for the domestic-production-activities deduction—we'll refer to it as the manufacturing deduction—all you have to do is fit under the tax-law definition of a "domestic manufacturer."
The IRS says the deduction is generally available for gross receipts derived from the following ...(register to read more)