Encouraging exports is a key pillar of our nation’s economic policy. Congress has designed a tax benefit to incentivize and reward those very activities by reducing tax liability and providing an increased cash flow for businesses to reinvest in future global commercial activities.
The Interest Charge–Domestic International Sales Corporation (IC-DISC) is the only export incentive available to U.S. businesses and their shareholders.
Businesses are excellent candidates for the IC-DISC if they are:
- U.S. companies that directly export their products
- U.S. companies that sell products destined for use overseas
- Pass-through entities and privately held corporations
Businesses don’t need to manufacture exported products themselves – as long as a substantial portion of the manufacturing is done in the U.S., the products can qualify for this benefit.
