Congress Extends IC-DISC Benefits for Exporters
On December 17, 2010, the President signed the Tax Relief, Unemployment Insurance Reauthorization and Job Creation Act of 2010 (2010 Tax Relief Act)(P.L. 111-312).
Among the many provisions in the 2010 Tax Relief Act, the most important provision for U.S. businesses that have products or services delivered outside of the United States is the extension of the reduced Qualified Dividend tax rate. The extension of the reduced tax rate on Qualified Dividends affords exporters a tremendous federal income tax savings through the implementation and optimization of an IC-DISC. Although the 2010 Tax Relief Act will expire on December 31, 2012, Congress and the President are in agreement on one important issue. The key to America’s sustainable economic future lies with exports, and the IC-DISC is essential to ensure our economic prosperity for many future generations.