The Domestic Production Activities Deduction is a tax incentive to keep businesses producing in the US rather than moving overseas. It has been repealed with the Tax Cuts and Jobs Act beginning in tax year 2018.
Businesses filing a prior year return can still claim the credit. The following types of businesses qualify for the deduction:
- US based manufacturing
- Selling, licensing or leasing items/ motion pictures that were produced in the US
- US Construction/Engineering/ Architectural services in US/for US projects
- US Software development