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The Producers

U.S. manufacturers and producers get a break under a new tax law.

This story appears in the May 2005 issue of Entrepreneur. Subscribe »

One of the most generous business tax benefits included in the American Jobs Creation Act of 2004 is a new deduction for "domestic producers." This provision replaces the extra-territorial income exclusion many exporters used in the past but that the World Trade Organization declared illegal in 2000.

Under the new tax law, the deduction gradually phases in as the exclusion for exporters phases out. In addition, it applies not only to exporters, but also to many U.S. producers. As a result, many more entrepreneurs will benefit.

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