Manufacturers’ deduction offers contractors valuable tax savings

Description

Abstract: Many contractors overlook the manufacturers’ deduction because it sounds like it applies only to manufacturing companies. Not so — many construction businesses, as well as architectural and engineering firms, can avail themselves of the deduction’s valuable tax savings. This article shows which activities qualify and how the deduction is calculated. A sidebar cites a court case explaining that, for purposes of claiming the deduction, the distinction between “substantial renovation” and “maintenance” is critical.