Don't miss out on the important deductions for your business.
Some companies can take advantage of a 9% deduction for US-based business activities.
Section 199 of the Internal Revenue Code makes US companies more competitive in the global marketplace. This section provides companies making products in the US with a new deduction based upon their manufacturing costs.
At the heart of the deduction is the definition of a "production activity."
In its simplest form, the available deduction is 9% of Qualified Production Activities Income (Qualified Production Activities Gross Receipts minus Qualified Production Activities Expenses). Depending upon the size and complexity of the business, this can be a simple calculation or a complex one.
In addition, the deduction is limited to the adjusted gross income (pass-through entities) or taxable income (C-corporations) of the entity and can not exceed 50% of W-2 wages.
Words from just one of our happy clients
"Impressive and responsive service. Acena Consulting successfully steered our client through a state audit of their R&D tax credit. They bring strong technical knowledge backed up with a detailed report providing project-level information. Our client has better and more detailed documentation as a result of Acena's efforts and counsel." -H.P. Tax Partner, Phoenix, AZ
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