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IRS Section 199 Domestic Production Activities Tax Credit
Does Netsuite have (or working on) any cost accounting mechanisms to make sure Section 199 tax deduction is accurately calculated?
About Section 199 Domestic Production Activities Deduction: The Tax credit is for products produced (20% or more) in the US. A business engaged in a qualifying production activity is eligible to take a tax deduction of 3% in tax years 2005 and 2006. The deduction increases to 6% in year 2007, and 9% in year 2010. Under a "safe harbor" rule (IRS Proposed Regulations 1.199.3.f.3), businesses can take the deduction if at least 20 percent of the total costs are the result of direct labor and overhead costs from US-based operations.
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