IC-DISC for Manufacturers
Your Manufacturing Exports Are Leaving Tax Savings on the Table
If your company manufactures products in the U.S. and exports them overseas, the IC-DISC program could save you $100,000 or more per year in taxes. It's a legitimate tax incentive that's been in the Internal Revenue Code since 1971, and most manufacturers have never heard of it.
Manufacturer Savings Example
Based on ~2.3% of qualified exports, net of fees. Actual savings vary.
Why Manufacturers Are Ideal IC-DISC Candidates
U.S. manufacturers check every box for IC-DISC eligibility, and the high-value nature of manufactured goods means substantial savings.
Automatic U.S. Content
Products manufactured in the United States automatically meet the 50% U.S. content requirement. Your production process inherently qualifies your exports.
High-Value Goods
Manufactured products (industrial equipment, machinery, components, consumer goods) carry high per-unit values. Higher export revenue means larger IC-DISC savings.
Consistent Export Contracts
Manufacturers often have long-term supply agreements with international buyers. That means IC-DISC savings are predictable and compound year after year.
Privately Held
Most U.S. manufacturers are privately held: family businesses, partnerships, or closely-held corporations. That's exactly the ownership structure where the IC-DISC delivers the greatest tax savings.
What Manufacturing Exports Qualify?
Qualified exports are products containing more than 50% U.S. content, sold to an ultimate destination outside the United States. For manufacturers, this typically includes:
- Finished goods:completed products ready for end use
- Component parts:sub-assemblies and parts sold to foreign manufacturers
- Industrial equipment:machinery, tools, and production equipment
- Custom-built machinery:engineered-to-order equipment for international clients
- Indirect exports:products sold to a domestic buyer who then exports them
Note: Even if you sell to a domestic distributor, trading company, or OEM who then exports the product, those sales may qualify as indirect exports for IC-DISC purposes. This is an area where many manufacturers are leaving money on the table.
Quick Qualification Check
Export (directly or indirectly) $3M+ annually?
Products manufactured in the U.S.?
Company is privately held?
If you checked all three, you're a strong candidate.
How We Work with Manufacturers
Manufacturers often export through multiple channels — direct international sales, OEM relationships, and domestic distributors who resell overseas. Each channel can qualify for the IC-DISC, but many manufacturers only capture the obvious direct exports. We identify the full picture.
We work alongside your existing CPA with no disruption. Many manufacturing CPAs refer their exporting clients to us because the IC-DISC requires dedicated systems and attention they cannot justify building in-house.
Product Line & Channel Mapping
We analyze your product lines and sales channels to identify all qualifying exports — including products sold through domestic OEMs and distributors that ultimately reach international markets.
Product-Specific Commission Design
Different product lines carry different margins. We structure the IC-DISC commission to account for margin variation across your manufactured goods, not just a single blended calculation.
Annual Product-Mix Optimization
As your product mix and export channels evolve, we re-optimize each year using TxT analysis — testing every transaction across product lines to maximize the total commission.
“Manufacturers are often surprised how much of their export revenue qualifies. Once they see the numbers, the IC-DISC becomes an obvious decision.”
David Spray
Founder, Export Advisors