The American Jobs Creation Act of 2004 included the debut of tax incentives designed to reduce corporate tax rates for purposes of benefiting small and middle sized domestic manufacturers of various goods and services.

• Manufacturing, producing, growing or extracting tangible personal property in the U.S.
• Manufacturing or producing computer software, sound recordings or qualified films in the U.S.
• Producing electricity, natural gas or potable water in the U.S.
• Construction services (which also includes related engineering and architectural services) performed in the U.S.

If the above describes your company, you could be eligible for federal tax deductions against qualified production activities income. These deductions are being phased in at a rate of 3% for tax years beginning after December 31, 2004 through December 31,2006; 6% for tax years 2007 through 2009; and 9% for tax years after 2009.

Let alliantgroup assist you in maximizing your company's profits through the benefit of newly activated tax incentives, such as the Domestic Production Activities Deduction.

For further information please contact David Ji in our Houston office at 713-877-9600.