Podcast: Leveraging Export Incentives to Reduce Taxes

On the Shop Floor

In this episode of Weaver: Beyond the Numbers, On the Shop Floor podcast, hosts Colby Horn and Kurtis Dixon examine the world of export incentives with Vince Houk, Weaver’s partner-in-charge, International Tax Services. Together they discuss how companies can leverage these incentives to reduce taxes, offset costs and ways to optimize the benefit.

Key Points:

• Export incentives yield permanent tax savings
• IC-DISC and FDII offer tax advantages for export sales and services
• Effective use of incentives boosts financial gains

Even for companies that are taking advantage of these incentives, there may be opportunities to maximize the benefit.

Export incentives have emerged as a pivotal tool for companies, especially those in the M&D sector selling goods outside the U.S. These incentives offer permanent tax savings and can mitigate unfavorable legislative changes such as R&D capitalization. This episode explores how businesses can maximize benefits, particularly after recent tax code changes.

Vince emphasizes the importance of these incentives, specifically for maximizing benefits to offset costs. He further elaborates on the two main incentives from an export perspective, IC-DISC and FDII, explaining their nuances and potential benefits for different entities. IC-DISCs are for companies that manufacture in the U.S. and sell internationally. The FDII incentive is specifically for C-corps that sell products outside of the U.S. to a foreign person for foreign use. With many clients engaging in significant international sales, Weaver regularly helps companies feel comfortable moving forward with these benefits.

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