When you think of American manufacturers, you might imagine fiery steel mills or clanking auto assembly lines. But—at least when it comes to the generous “domestic production activities” deduction in the tax code—a lot more business owners qualify than you might think.

Maybe even you.

The deduction, in general, is for people who convert starting materials into a new finished product in their business, and if you think about it, that covers a tremendously broad array of activities, including these:1

Construction

Certain dental procedures

Writing computer software

Creating music recordings

Producing crafts and other goods

Raising livestock

Farming

The deduction can be substantial—up to 9 percent of all income from qualifying activities. There are definitely tricks you need to be aware of in terms of ... Log in to view full article.