American Jobs Creation Act of 2004

On Friday, October 22, 2004, the American Jobs Creation Act of 2004 (the "Jobs Creation Act" or "Act") was signed into law by President Bush. This major tax legislation adds or extends a number of significant tax breaks for businesses and taxpayers of all kinds--ranging from construction companies to engineering firms to restaurants to film production companies. We wanted to take this opportunity to make you aware of some of these tax breaks and their effective dates and also warn you about some of the revenue-raising provisions in the Act that may adversely affect you or your business.

Among other things, the Jobs Creation Act adds or extends the following tax breaks:

• A provision granting a deduction for manufacturing activities that take place in the United States. "Manufacturing" is defined very broadly for purposes of this new provision, so that many businesses that would not typically think of themselves as manufacturers, such as construction, engineering, energy