Skip to Main Content

Bloomberg Law Quotes Jonathan Brenner: Companies Get Leniency in Made-in-America Export Tax Break

March 5, 2019, Bloomberg Law, Daily Tax Report

From airlines to defense companies, the new IRS regulations issued Monday make it easier for companies to claim a tax break for exporting their made-in-America goods and services. The release of the regulations give corporations a first look at what they need to do to claim a sizable deduction for the income they earn from selling goods and services made in the United States overseas.

The deduction for foreign derived intangible income, or FDII, was designed to encourage American companies to produce more in the U.S. The law cut the corporate tax rate to 21 percent from 35 percent and moved the U.S. toward a territorial tax system, so companies don’t owe the full U.S. tax rate on foreign income. The FDII provision works in tandem with the levy on global intangible low-taxed income, or GILTI, which taxes profits made in countries that didn’t tax them in the first place.

. . .

FDII has received much less attention than GILTI from corporate tax accountants in the months following the tax law’s passage, said Jonathan Brenner, a member at law firm Caplin and Drysdale. Companies have been more focused on GILTI because it takes away something they used to have -- the ability to defer taxes on offshore cash indefinitely and now requires them to pay at least some tax on those profits.

For the full article, please visit Bloomberg Law’s website (subscription required).

Excerpt taken from the article “Companies Get Leniency in Made-in-America Export Tax Break” by Laura Davison and Siri Bulusu for Bloomberg Law’s Daily Tax Report.


About Caplin & Drysdale
Celebrating our 55th Anniversary in 2019, Caplin & Drysdale continues to be a leading provider of legal services to corporations, individuals, and nonprofits throughout the United States and around the world. We are also privileged to serve as legal advisors to accounting firms, financial institutions, law firms, and other professional services organizations.

The firm's reputation over the years has earned us the trust and respect of clients, industry peers, and government agencies. Moreover, clients rely on our broad knowledge of the law and our keen insights into their business concerns and personal interests. Our lawyers' strong tactical and problem-solving skills -- combined with substantial experience handling a variety of complex, high stakes, matters in a boutique environment -- make us one the nation's most distinctive law firms.

With offices in New York City and Washington, D.C., Caplin & Drysdale's core practice areas include:
For more information, please visit us at
Washington, DC Office:
One Thomas Circle NW
Suite 1100
Washington, DC 20005
New York, NY Office:
295 Madison Avenue
12th Floor
New York, NY 10017


This communication does not provide legal advice, nor does it create an attorney-client relationship with you or any other reader. If you require legal guidance in any specific situation, you should engage a qualified lawyer for that purpose. Prior results do not guarantee a similar outcome.

Attorney Advertising
It is possible that under the laws, rules, or regulations of certain jurisdictions, this may be construed as an advertisement or solicitation.
© 2022 Caplin & Drysdale, Chartered
All Rights Reserved.

Related Professionals

Related Practice Area(s)