Articles & Alerts

Tax Incentives for U.S. Work on Foreign Projects

July 28, 2014

Many Architecture and Engineering firms are expanding their scope of work into international projects. These companies may be able to reduce overall taxes and increase cash flow with the proper tax planning and structure.

If you are an architect or engineer performing services for construction projects located outside the United States, or have completed work in the United States intended for use outside the country, this strategy could result in substantial tax savings.

An IC-DISC (Interest Charged Domestic International Sales Corporation) entity could enable eligible companies to benefit from significant tax savings opportunities related to the income from these projects.

For example, if an engineering firm generates $500,000 of net income overseas, they could save as much as $130,000. To find out if an IC-DISC structure or other incentives can help your business, contact your Anchin Relationship Partner or Phillip Ross, Practice Leader of Anchin’s Architecture and Engineering Industry Group, at 212.840.3456.