Domestic Production Activities Deduction

If your business makes something in the United States, whether it's by manufacturing, agriculture, mining extraction, construction, filming, software development, or certain other approved activities, you can claim a deduction that effectively reduces the tax rate you pay on your business profits. The best part of the deduction: You don't have to spend any separate money to get it (you are entitled to it because of your activities).

You may deduct 6 percent of the net income from qualified domestic production activities. The deduction for individuals is claimed as a subtraction after you have figured the other deductions in the adjusted gross income section of your return.