Section 199 Domestic Production Activity Deduction

Understand the risk and opportunity with our Audit Readiness Reviews


Section 199 Domestic Production Activity Deduction is a special deduction that applies to organizations with domestic production activities, including those in manufacturing, software production, film production, print media, construction, engineering, and power generation. The deduction has become increasingly more significant now that the rate has increased to nine percent for tax years beginning after December 31, 2009. Furthermore, the Section 199 Domestic Production Activity Deduction is under more scrutiny as the IRS has designated it as a Tier 1 audit issue.

Deloitte’s Production Activity Solutions (PAS) group can assist you in managing the challenges that you may face resulting from the IRS’s heightened scrutiny of the Section 199 deduction. Our Section 199 Audit Readiness Reviews provide an analysis of your Section 199 calculations, based on common issues identified through IRS examinations, and risk points.

Download the PDF attachment to learn how our PAS group can assist with your Section 199 challenges.

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