### Question
How is the term domestic production gross receipts defined?


### Answer
The term **domestic production gross receipts** is defined in *26 U.S.C. § 199* as the following:

> the gross receipts of the taxpayer which are derived from—


(i) any lease, rental, license, sale, exchange, or other disposition of—


(I) qualifying production property which was manufactured, produced, grown, or extracted by the taxpayer in whole or in significant part within the United States,


(II) any qualified film produced by the taxpayer, or


(III) electricity, natural gas, or potable water produced by the taxpayer in the United States,


  

(ii) in the case of a taxpayer engaged in the active conduct of a construction trade or business, construction of real property performed in the United States by the taxpayer in the ordinary course of such trade or business, or


(iii) in the case of a taxpayer engaged in the active conduct of an engineering or architectural services trade or business, engineering or architectural services performed in the United States by the taxpayer in the ordinary course of such trade or business with respect to the construction of real property in the United States

#### Citation:
  - *26 U.S.C. § 199*
  - Heading: **Subtitle A-Income Taxes > CHAPTER 1-NORMAL TAXES AND SURTAXES > Subchapter B-Computation of Taxable Income > PART VI-ITEMIZED DEDUCTIONS FOR INDIVIDUALS AND CORPORATIONS**

