alliantgroup has announced plans to expand the firm’s Domestic Production Activities Deduction (DPAD) service line.
DPAD, first implemented in 2005, is a federal tax incentive that rewards companies that manufacture and produce their goods in the United States rather than outsourcing overseas. Businesses that engage in domestic manufacturing and production activities receive up to a 9 percent tax deduction on income earned from qualified production activities.
“In a time when there is a heavy emphasis placed on buying and producing American made goods, our firm felt it was important to expand our efforts with respect to DPAD,” said Dhaval Jadav, alliantgroup CEO. “DPAD is an excellent way to reward those companies that have chosen to keep their manufacturing facilities on American shores.”
Although DPAD is generally associated with traditional manufacturers, the deduction includes industries such as architecture, engineering and construction firms, film and video producers, sound recording companies, computer software developers, food and beverage producers and electricity and natural gas producers.