QPAI Deduction in HB 2542-A: A tax cut for out-of-state investment and accounting gimmicks

July 1, 2005 Download PDF

Updated July 11, 2005

Executive Summary

The American Jobs Creation Act of 2004 included the largest single tax cut for corporate America in years, a new deduction for “qualified production activities income,” or QPAI. Under current law, the Legislative Assembly must choose to “connect” to this tax break before companies can use it. In early April, the House voted to allow the QPAI deduction as part of HB 2542-A.