IC-DISC Consulting

Wall, Einhorn & Chernitzer brings good tax news for small and mid-sized companies that sell goods manufactured, produced, grown or extracted in the U.S. and are sold in foreign markets. The Interest Charge Domestic International Sales Corporation ("IC-DISC") tax incentive can provide dramatic tax savings to business owners that export their products and services abroad (including bordering nations, Mexico and Canada).

IC-DISC works in a similar manner to the Extra Territorial Incentive (ETI), which was repealed a few years ago. To qualify, a company must produce goods substantially in the U.S. that are destined for overseas markets. Instead of a deduction computed as part of an exporter's income tax return, the DISC is a separate corporation established to receive commissions from the exporting company. While not a tax shelter, the IC-DISC provides a permanent 20 percent tax savings for qualifying exporters. Depending on the amount of export sales and profit margin, the savings can be significant.

Who Can Benefit from IC-DISC tax planning?

• Privately-held, U.S. manufacturers and distributors that export U.S. goods (including foreign-owned U.S. based).
• Architecture and engineering firms that work out of the country on infrastructure or real estate projects may qualify.

The tax professionals at Wall, Einhorn & Chernitzer have hands-on experience in IC-DISC tax counsel. Contact us to take advantage of this powerful tax incentive.