Domestic companies earning income from exporting U.S. produced products can benefit from Interest Charge-Domestic International Sales Corporation (IC-DISC). An IC-DISC offers a permanent tax savings as well as tax deferral opportunities to U.S. companies manufacturing and distributing products or services for export. The permanent tax rate benefit is available to flow through entities such as partnerships, limited liability companies, and S-corporations.
To qualify, goods must be manufactured, produced, grown, or extracted in the United States and exported internationally. Producers include manufacturing and distribution companies. Additionally, professional engineering or architectural services for construction projects located outside the U.S. can qualify for the tax benefit. Leased U.S. manufactured property used outside the U.S. is also eligible for this tax benefit.