Qualified Production Activities Income - QPAI
 |
Definition of 'Qualified Production Activities Income - QPAI'Income derived from domestic production that qualifies for reduced taxation. More specifically, qualified production activities income is the difference between the manufacturer's domestic gross receipts and aggregate cost of goods and services related to producing the domestic goods. This reduced tax is intended to reward manufacturers for producing goods domestically instead of overseas. |
 |
Investopedia explains 'Qualified Production Activities Income - QPAI'The IRS mandates that any domestic manufacturer of goods can exclude 6% of all income derived from goods production from income taxation in 2008 and 2009. The tax-free rate for QPAI increases to 9% in 2010.This type of income does not include revenue generated from the restaurant industry, electricity or natural gas production or real estate transactions. |
Related Definitions
Articles Of Interest
-
Globalization: Progress Or Profiteering?
Proponents of globalization argue that it helps the economies of developing nations and makes goods cheaper, while critics say that globalization reduces domestic jobs and exploits foreign workers. ... -
Global Trade And The Currency Market
Learn how the Bretton Woods system got the ball rolling for world trade. -
Give Your Taxes Some Credit
A few tax credits can greatly increase the amount of money you get back on your return. -
NAFTA's Winners And Losers
Read on to find out who this free-trade agreement helped, and who it hurt. -
How can I tell if I'm eligible for an EITC?
According to the IRS, over 22 million taxpayers received $41.4 billion dollars in earned income tax credit (EITC) for tax year 2005. On the other hand, it was not claimed by approximately 20 ... -
Weighted Average Cost Of Capital (WACC)
Weighted average cost of capital may be hard to calculate, but it's a solid way to measure investment quality -
Approved: Paying Online Sales Tax
States will now be allowed to collect sales taxes on purchases made from Internet-based retailers even if the retailer has no physical presence in that state. -
What is a monopoly?
Monopoly is a fun family game, but in real life, a monopoly can be dangerous to a country's economy. A monopoly occurs when an industry or sector has only one producer of goods or retailer for ... -
Do Personal Income Tax Cuts Foster Economic Growth?
Studies show that cuts to personal income tax rates will improve tax revenues, but not lead to economic growth. -
Best States For Company Headquarters
Texas, Florida, Virginia and Utah are considered to be some of the best states to do business in. Find out why.
Free Annual Reports