Trump and Congress Have Two Tax Paths to Increase U.S. Production

Tax attorney Joshua Odintz authored a Bloomberg Tax article exploring two potential changes to the tax code that could enhance domestic production: restoring Section 199 and overhauling Foreign Derived Intangible Income (FDII) rules. Restoring Section 199 would reinstate tax deductions for domestic production activities, though it would require updates to address previous disputes and adapt to technological advances. Alternatively, revising FDII rules to cover routine returns could lower corporate income taxes for producers, but adjustments are needed to broaden deductions to include all producers. Mr. Odintz discusses how both strategies aim to incentivize U.S. production, but each has distinct benefits and considerations that Congress must weigh before implementation.

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