Treasury Issues Final Rules on Made-In-America Tax Break

The IRS released final rules for companies eligible to take deductions on goods produced in the U.S. and sold overseas.

The rules, released Thursday, let U.S. companies take a tax deduction on income the 2017 tax law created—foreign-derived intangible income—as long as the sale is proven to be to a foreign person for foreign use.

• The deduction under tax code Section 250 is meant to offset a tax on the new category of foreign income called global intangible low-taxed income, and to encourage companies to manufacture domestically.
• The March 2018 proposed version (REG-104464-18) included documentation requirements to ...