In 2008, a tax law (Section 199 domestic Production Activities Deduction) was clarified by the IRS, which allows marketing cooperatives to pass along a tax deduction to its grower-owners. Look for your potential deductible amount on your 1099 PTR which is mailed to you each January.
Some grower/owners may already take advantage of this deduction in your own growing and processing businesses and that deduction may be increased because of your Tree Top membership. This potential deduction will be calculated and included on your 1099 form. This pass-through deduction, if applicable, will effectively increase the returns you earn on your market-righted fruit because it could decrease your income tax liability.
The QPAD deduction is multiplied by the amount of market-righted tons owned by the grower and can represent a significant deductible expense and benefit to you.