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


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

> 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) construction performed in the United States, or


(iii) engineering or architectural services performed in the United States for construction projects 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**

