An Analysis of the New Section 199 Production Activities Deduction
In October 2005, the U.S. treasury released the second round of guidance details around Internal Revenue Code section 199. Deloitte Tax LLP's Producing Results II provides an overview of section 199 and the recently released proposed regulations.
Section 199 permits taxpayers to claim a deduction from taxable income attributable to domestic production activities. Included in the second round of guidance details are:
- Clarifications related to qualified production activities deduction
- The "item" produced by the taxpayer
- Determining domestic production gross receipts
- Clarification on manufactured "in significant part" in the United States
- "Construction" activities that qualify for the deduction
View the attachment below for an in-depth look at Section 199.
Attachments
Producing Results II (629 KB)
Read more on the new proposed Section 199 provisions.
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Last Updated: April 4, 2006
Source: Deloitte & Touche USA LLP - United States (English)