Month: December 2020

The Made-in-America versus “Made-in-Puerto Rico” tax breaks

The Made-In-America tax break has been the object of much discussion since the IRS issued the final regulation on July 9, 2020.  The tax break creates an effective reduction in the federal corporate tax rate from 21% to 13%.  However, it has two problems: (1) the 13% effective tax rate only lasts until 2025, then increases to 16% effective tax rate; and (2) the tax break is only for goods and services produced in the U.S. and sold overseas, missing your U.S. customer base.

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