Is there a tax break for companies moving jobs overseas?

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The answer is yes, no and maybe. First the tax code is very complicated and has been interpreted by the tax courts over the years. Things were put in the code to encourage business to do certain things or to stop certain things. http://www.foxnews.com/politics/2012/10/04/fact-check-tax-break-for-shipping-jobs-overseas/ http://www.redstate.com/fmaidment/2012/10/03/no-tax-break-to-move-jobs-overseas/ One of the problems is that if you are going to tax off shore profits then you have to allow the deductions for off shore expenses. Right now the tax code states that if you have business expense you can deduct that expense from what you own in taxes. The tax deduction for moving a business overseas is the same as moving a business from one state to another. There is no specific tax break for moving a business overseas. Years ago US business were encouraged to develop plants overseas to improve the foreign country's economy so that they could buy US products. For example it is a common practice in a trade deal for a country to buy American Products and to require the company to build a plant in that country. For example a large farm implement company gets an order for 5000 farm tractors from xyz country, that will be built in the US but are to be shipped to xyz country to be painted and options installed in xyz country. The company builds a plant to do that. Is that saving American jobs or costing jobs? Hundreds of people are employed in making the 5000 tractors vs 0 jobs if the company does not get the contract. Should the company be punished for creating jobs in the US even if some jobs are created overseas? The tax code is extremely complicated and every tax credit and deduction was put in for a reason and needs to be looked at carefully before it is changed. Yes there are many things that need changing and should be looked at.