Manufacture some tax savings this year – Section 199 deduction rises to new heights
Abstract: There are a number of tax breaks contractors might want to consider in 2010. One is the Section 199 deduction, also known as the qualified domestic production activities deduction and the manufacturers’ deduction. Contractors who are regularly involved with construction or major renovation of real property, such as residential and commercial buildings, can qualify for this deduction, which has increased this year. Contractors without taxable income won’t qualify, but they may be able to take advantage of the net operating loss (NOL) deduction. As a sidebar explains, this has been expanded.