Section 199 Domestic Production Activity Regulations


On August 26, 2015, the IRS released a long-anticipated proposed regulation package addressing the §199 domestic production activities deduction. The proposed rules have been in the works for several years, and develop about a dozen technical aspects of the domestic production activities deduction, including issues relevant to contract manufacturing, oil and gas extraction and production, and film production. The proposed regulations contain several provisions that taxpayers will welcome, according to practitioners contacted by Bloomberg BNA.


Section 199 Domestic Production Activity Regulations provides an in-depth analysis of the new rules and added insight for both corporate taxpayers and the tax practitioners that advise them. The report also offers guidance on the real-world application of these rules.