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Author: Tax Policy Services Group, Deloitte Tax LLP
Congress approved and President Bush signed into law the American Jobs Creation Act of 2004, legislation to repeal the Extraterritorial Income (ETI) Act tax regime. In addition to phasing out the ETI regime, the act will provide $137 billion in new corporate tax incentives over the next 10 years.
The centerpiece of the act is a 9 percent phased-in deduction for domestic manufacturing income. Also included are a temporary tax break for repatriated income, reforms of the subpart F and foreign tax credit rules, and a number of other tax cuts targeted at both businesses and individuals.
Passage of this major tax bill presents U.S. companies with significant new tax-planning opportunities and challenges. This overview document–prepared by the Tax Policy Services Group of Deloitte Tax LLP–will help you to understand the new bill’s scope and discover what will be required for compliance, tax planning, risk management and controls and processes.
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