Daily Tax Report: International

Treasury Issues Final Rules on Made-In-America Tax Break

July 9, 2020, 3:22 PM

The IRS released final rules for companies eligible to take deductions on goods produced in the U.S. and sold overseas.

The rules, released Thursday, let U.S. companies take a tax deduction on income the 2017 tax law created—foreign-derived intangible income—as long as the sale is proven to be to a foreign person for foreign use.

  • The deduction under tax code Section 250 is meant to offset a tax on the new category of foreign income called global intangible low-taxed income, and to encourage companies to manufacture domestically.
  • The March 2018 proposed version (REG-104464-18) included documentation requirements to...
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