Pharma and Life Sciences Tax News: Vol: 11, No. 7:

IRS examines whether manufacture of packaging qualifies for section 199 deduction

In a recently released legal memorandum, the IRS Office of Chief Counsel concluded that the exclusion from the section 199 deduction for repackaging and labeling activities does not apply to a taxpayer that repackages and labels pills it did not manufacture because the taxpayer engaged in other eligible manufacturing, production, growing, or extraction activities by virtue of its manufacture of the blister packs containing the pills.

Click here for more information.