Individual Income Tax Filing: Statutory Adjustments: Domestic Production Activities Deduction
This dataset tracks individual income tax filing: statutory adjustments: domestic production activities deduction over time.
Latest Value
719622.00
Year-over-Year Change
113.56%
Date Range
1/1/2005 - 1/1/2016
Summary
The Domestic Production Activities Deduction (DPAD) is a U.S. federal income tax deduction that allows eligible businesses to reduce their taxable income. This trend measures the total dollar amount of DPAD claimed on individual income tax returns.
Analysis & Context
This economic indicator provides valuable insights into current market conditions and economic trends. The data is updated regularly by the Federal Reserve and represents one of the most reliable sources for economic analysis.
Understanding this metric helps economists, policymakers, and investors make informed decisions about economic conditions and future trends. The interactive chart above allows you to explore historical patterns and identify key trends over time.
About This Dataset
The DPAD was introduced in 2005 to incentivize domestic manufacturing and production. It allows taxpayers to deduct a percentage of their qualified production activities income, which can result in lower tax liabilities. Economists and policymakers use this data to analyze trends in business investment and the effectiveness of this tax policy.
Methodology
The data is collected from individual income tax returns filed with the Internal Revenue Service.
Historical Context
This metric is relevant for understanding the impact of tax policy on business behavior and the broader economy.
Key Facts
- The DPAD was introduced in 2005 as part of the American Jobs Creation Act.
- Eligible businesses can deduct up to 9% of their qualified production activities income.
- The total value of DPAD claims has fluctuated over time as tax policy changes.
FAQs
Q: What does this economic trend measure?
A: This trend measures the total dollar amount of Domestic Production Activities Deduction (DPAD) claimed on individual income tax returns.
Q: Why is this trend relevant for users or analysts?
A: This metric is important for understanding the impact of tax policy on business investment and economic activity.
Q: How is this data collected or calculated?
A: The data is collected from individual income tax returns filed with the Internal Revenue Service.
Q: How is this trend used in economic policy?
A: Economists and policymakers use this data to analyze trends in business investment and the effectiveness of the DPAD tax policy.
Q: Are there update delays or limitations?
A: The data may be subject to delays in tax return processing and filing.
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Citation
U.S. Federal Reserve, Individual Income Tax Filing: Statutory Adjustments: Domestic Production Activities Deduction (DMPACDD), retrieved from FRED.