Yet another DPAD question

[Nashville]

I'm almost sure I've asked this question before, but at the time none of us knew an answer.

For projects that qualify for Domestic Production Activities Deduction:

Are the various limits applied on each project level, or are they applied in the aggregate?

For simplicity's sake, imagine a company with two projects, A and B. Taken by itself there is not enough W-2 Labor spent on project A to qualify for the full deduction, but there is more than sufficient labor on project B to qualify. However, if you add the costs of A and B together, we find out that the total of labor exceeds the threshold.

Is the DPAD deduction limited by virtue of not enough Labor spent on project A?

[sholbtx]

DPAD question

The credits are applied/limited at Company level. I have a couple S Corps that are eligible and the limits are applied at Company level and then again as they flow onto the personal tax return of the shareholders.

[JG EA]

The credits are applied/limited at Company level. I have a couple S Corps that are eligible and the limits are applied at Company level and then again as they flow onto the personal tax return of the shareholders.

OP wants to know the answer to a different question. He wants to know about qualifying at the project level.

Nashville:...For simplicity's sake, imagine a company with two projects, A and B. Taken by itself there is not enough W-2 Labor spent on project A to qualify for the full deduction, but there is more than sufficient labor on project B to qualify. However, if you add the costs of A and B together, we find out that the total of labor exceeds the threshold.

Is the DPAD deduction limited by virtue of not enough Labor spent on project A?

I'm not sure about this area. I almost answered, but looked it up again and wondered if I am being overly cautious. So, here is what I was going to say: I have a manufacturer who welds things together. He also does subcontracting by going to another business and welds things there for that company. I have been subtracting the subcontracting work before figuring the DPAD. In my case I don't have to worry about the W-2's because the wages are all paid in the manufacturing end. Not much help, but maybe someone else will weigh in.