The U.S. District Court for the Central District of California has ruled that assembling gift baskets is a qualifying activity for the Domestic Production Activities Deduction (DPAD.)
In essence, the court said that the taxpayer(s) created a new product, which therefore qualified for the deduction.
This has potential implications for other types of businesses that "transform" personal property.
A good article summarizing the case can be found at Accounting Today.
If you would like to explore the implications this may have for your business, please give me a call.
And always consult a tax professional before acting on anything you read or hear!