Tax Benefits for U.S. Exporters

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U.S. tax law has long provided powerful incentives designed to encourage domestic businesses to export goods and services abroad. Two of the most significant—and often underutilized—export incentives are the Interest Charge Domestic International Sales Corporation (IC‑DISC) regime and the deduction for Foreign‑Derived Deduction Eligible Income (FDDEI). When properly structured, these incentives can create permanent tax savings that materially improve after‑tax profitability for manufacturers and exporters.

This course delivers a practical, end‑to‑end review of the primary tax benefits available to U.S. exporters. Led by former IRS Chief Counsel (International) attorney Robert Misey, the program explains how corporations qualify for IC‑DISC treatment, how qualified export receipts are computed, and how IC‑DISC income is reported. The course also examines the FDDEI deduction, including the identification of deduction eligible income and calculation of the foreign‑derived deduction amount.

Designed for tax professionals advising export‑focused businesses, this program emphasizes real‑world planning, compliance mechanics, and documentation requirements. Attendees will leave equipped to identify eligible clients, structure export incentives appropriately, and confidently implement strategies that reduce U.S. tax liability while complying with federal tax law.

Who Should Attend
This course is designed for professionals who advise U.S. businesses engaged in manufacturing or exporting goods and services abroad.

Topics Covered

• Overview of U.S. export‑related tax incentives
• Tax benefits and structure of an IC‑DISC
• Qualifying requirements for IC‑DISC treatment
• Manufacturing and destination requirements
• Computation of qualified export receipts
• Preparation of Forms 4876‑A and 1120‑IC‑DISC
• Overview of the FDDEI deduction
• Deduction eligible income and foreign‑derived income calculations
• Planning and compliance considerations for exporters

Learning Objectives

• Determine whether a corporation qualifies as an Interest Charge Domestic International Sales Corporation (IC‑DISC)
• Calculate qualified export receipts for IC‑DISC purposes
• Prepare and review Forms 4876‑A and 1120‑IC‑DISC
• Identify deduction eligible income that qualifies for the FDDEI deduction
• Calculate the deduction for Foreign‑Derived Deduction Eligible Income
• Evaluate planning opportunities to reduce tax liability for U.S. exporters

Level
Basic

Instructional Method
Group: Internet-based

NASBA Field of Study
Taxes (2 hours)

Program Prerequisites
None

Advance Preparation
None