Surprisingly enough, there are thousands of small to mid-sized businesses that are entitled to a 20% tax break for exports but failing to take advantage of it.
Many small business owners, and even many accountants, aren’t aware of this tax incentive. The name of this tax break poorly communicates the incentive. It’s called Interest Charge Domestic International Sales Corporation (IC-DISC), which makes no sense to most people.
What Types of Business Qualify?
• Company that directly exports goods that it manufactures (e.g., agriculture, software, films, etc.).
• Architectural or engineering services or construction services based in United States and provided for another country (e.g., office building design, mall design, or foreign bridge construction in South America).
• Company that manufactures a good that is part of product that is exported for ultimate use outside of the United States. In other words, a component manufacturer of a larger product often can qualify for this tax benefit. For example, an engine manufacturer makes an engine component for lawn mowers can become eligible even though they are not the ultimate exporter.
Naturally, a large tax break like this takes work to set up and document. The second is to identify a CPA Firm that provides this service ensuring their clients earn the entire tax incentive.
The goal of this export incentive tax break was to strengthen our manufacturing base and increase exports of domestic goods produced.
Canner Brody and Yan CPAs helps exporters of U.S. goods and services capitalize on this attractive tax break. Our clients are located throughout Miami Dade county, Broward county and other parts of Florida. Canner Brody and Yan has an expertise in international tax services for US based businesses and foreign businesses. To take advantage, call 305-728-5109 and ask for Andrew Brody, Managing Partner.