FSC Program [expires 12/31/01]

Highlights

• An established and widely used tax incentive  

• Provides a permanent tax exemption—not just deferral of current taxation 

• The benefit is not subject to alternative minimum tax 

• Easy to obtain 

• Inexpensive

• No visible change to business operations

Overview

FSCs are the most widely used export tax reduction vehicle available to U.S. exporters. There are currently around 6,000 FSCs in existence. 

The tax savings ordinarily amounts to about a 15% exemption on export profits. By applying special marginal costing and grouping rules and by taking certain other strategies, your tax savings can be maximized. 

Quail Street Management (QSM) is a FSC management company that manages Shared FSCs for member organizations of Western Growers Association based in Irvine, California. The FSC services business is based in Hamilton, Bermuda and its clients represent a broad spectrum of exporters.