US Production Incentives
Permanent Tax Savings from IRC Section 199 - DPA
WTP's Domestic Production Activity (DPA) services create recurring permanent tax savings for businesses that manufacture in the United States. For example, our U.S. Export Incentives services help businesses benefit from repealed ETI exclusions, and IC-DISC services provide annual tax benefits for importers.
Qualified production activities include:
- Tangible personal property
- Software (computer, sound recordings and film)
- Utilities (electricity, natural gas or potable water)
- Real property construction services
- Engineering or architectural services related to real property construction projects
Our DPA process includes:
- Creating a repeatable process to effectively manage data gathering on an ongoing basis, and establishing processes for recordkeeping and documentation required for IRS purposes
- Identifying qualifying revenue streams
- Analyzing impact on other tax areas (e.g., state and local)
- Analyzing allocation and apportionment methodologies
- Analyzing multi-dimensional profitability, which is useful in business review
- Calculating transactional taxable income and reconciling tax-return data and financial information
- Developing transparent work paper trail
- Creating supportable documentation of qualified domestic production activity to withstand IRS scrutiny
Contact us to inquire about U.S. Production Incentives services.