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RSM McGladrey brings clarity to the domestic manufacturers’ deduction.

The American Jobs Creation Act of 2004 established a deduction for domestic production activities, commonly known as the domestic manufacturers’ deduction. With it, the definition of “production” was broadened to include areas not traditionally referred to as manufacturing.

If you’re a traditional manufacturer, this means you should qualify for more deductions under the new rules.

If you’re a software development, architecture, engineering or construction business, it means you’re now included in a group of taxpayers who can qualify for this deduction.

The tax savings for your business could be significant. Once the law is fully phased in (from 2005 through 2010), you could lower your effective tax rate up to three percentage points.

As an international tax and business consulting firm focusing on the unique needs of midsized companies, RSM McGladrey is on the leading edge of interpreting this complex tax law. We designed this guide to help clarify the broad scope of the deduction and give you a sample of some of the situations that might enable you to enhance your deductions.

 Download this free guide