Date of this Version
At this time last year we didn’t think we would see a new piece of tax legislation in 2004 and October brought us two of the largest bills in recent history. The second of the two was the American Jobs Creation Act of 2004. The fuel behind this bill was largely related to the Extra-Territorial Income Exclusion Act (ETI) of 2000 that had been deemed “inconsistent with international trade agreements” by the World Trade Organization. This had been a tax preference for strictly exporters, which is why the WTO had a problem. While the new law called for a three year phase out of the old law, it also brought us a new deduction for those whose gross receipts included property that was “manufactured, produced, grown or extracted” in the United States.