Acena Consulting Blog on US Tax Incentives

A topic that comes up from time to time when introducing the IC DISC to potential clients relates to the sales commissions paid to the IC DISC and not paid out as a dividend to the shareholders of the IC DISC.

On February 6^th, U.S. Senator, Chris Coons of Delaware delivered a speech advocating a permanent research and development tax credit that could be sold by companies that qualified but could not use the tax credits.

Last week we started defining qualified export property. You can find this article at: What is qualified export property? Today, we turn our focus to drilling down on the definition of qualified export property and understanding the 50-percent test and fair market value.

In parts 1-3, we looked at the contract manufacturing qualifying activities (see How does contract manufacturing qualify for R&D tax credits (part 1)), potential IRS audit issues that could be a concern (see part 2) and documentation of activities (part 3).

Last week we looked at the definition of revenue, assets and capitalization of an IC DISC. See IC DISC Basics – Defining IC DISC Revenue, Assets & Capitalization Today, we turn our focus to defining qualified export property.

In parts 1 & 2, we looked at the contract manufacturing qualifying activities (see How does contract manufacturing qualify for R&D tax credits (part 1)) as well as some of the potential IRS audit issues that could be a concern (see part 2).

Last week we took a moment to define an “DISC” by reviewing the basic requirements for a US corporation. See IC DISC Basics: Requirements of an IC DISC if you missed the posting. Today we are going to take a deeper look at some of the definitions related to the basic requirements. Specifically, we will review the definitions of:

In part 1 last week, we looked at the contract manufacturing and whether the activities of a contract manufacturing company could qualify for research tax credits (see How does contract manufacturing qualify for R&D tax credits (part 1)).

The last export incentive, an IC DISC is a US corporation with specific requirements that can provide dramatic tax savings for companies exporting products and services. Today, we will look at the statutory requirements for an IC DISC as defined in the tax regulations (IRC Regulation Sections 991-997).

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