Export financing interest

Export financing interest

Interest income derived from goods manufactured in the U.S. and sold outside the U.S. as long as not more than 50% of the value is imported into the U.S.

Export Financing Interest

Income coming from interest on a credit line an exporter extended to a buyer on goods the exporter manufactured in the United States. That is, if a seller in the United States lends a foreign buyer an amount to buy one of the seller's products, the interest on that loan is export financing interest. The IRS categorizes export financing interest as passive income as long as less than half the value of the final product comes from imports into the United States.
References in periodicals archive ?
954(c)(2)(B), export financing interest received in the active conduct of a banking business is not passive income.
It does not include high-taxed income, export financing interest and income included in another basket (e.
904-4(d), all such interest is included in the high-withholding-tax-interest basket, except for export financing interest.
904(d)(2)(G) defines export financing interest as any interest derived from financing the sale or other disposition of certain property for use or consumption outside the U.
Sec, 1,904-4(d), all such interest is included in the high withholding tax interest basket, except for export financing interest.