Many business owners wonder if they qualify with production activity. You may be able to use this tax deduction for your U.S. based business activities. The deduction however is limited to income arising from qualified production activities in whole or in part based in the United States. The following are qualified production activities.
- Manufacturing based in the United States,
- Selling, leasing, or licensing items that have been manufactured in the United States,
- Selling, leasing, or licensing motion pictures that have been produced in the United States,
- Construction services in the United States, including building and renovation of residential and commercial properties,
- Engineering and architectural services relating to a US-based construction project,
- Software development in the United States, including the development of video games.
If you think you have a business that falls into any of these categories and you are not looking at this deduction, you could be missing out on a valuable tax break.