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Investments glossary

Qualified Production Activities Income (QPAI)


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Quotes of the day:

I\'m in favor of legalizing drugs. According to my values system, if people want to kill themselves, they have every right to do so. Most of the harm that comes from drugs is because they are illegal.

— Milton Friedman

Qualified Production Activities Income (QPAI) is the portion of income derived from domestic manufacturing and production that qualifies for reduced taxation. More specifically, qualified production activities income is the difference between the manufacturer’s domestic gross receipts and aggregate cost of goods and services related to producing domestic goods.1 The tax-deductibility of QPAI is intended to reward manufacturers for producing goods domestically instead of overseas.


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