How can the DPAD help construction companies save?
The Domestic Production Activities Deduction (DPAD) is a term that every owner of a construction company should know. It is a free tax deduction that is allowed for any US company that produces goods. While this deduction is often called the manufacturer’s deduction, it truly is much broader than that. Not only do construction contractors qualify for this deduction, but so do those providing architecture and engineering services to construction contractors.
If you own a business that produces something in the United States you may be eligible for the Domestic Production Activities Deduction also known as DPAD. Businesses engaged in any of the following activities should review their tax returns for this deduction.
If you haven’t heard of the “DPAD” you might just be missing out on a promising tax deduction. It’s called the Domestic Production Activities Deduction (DPAD) and benefits owners of businesses that engage in any of the following activities: