Tax Form 8903 is used to figure your domestic production activities deduction (DPAD)
Your DPAD is generally 3% of the smaller of:
- Your qualified production activities income (QPAI), or
- Your adjusted gross income for an individual, estate, or trust (taxable income for all other taxpayers) figured without the DPAD.
However, your DPAD generally cannot be more than 50% of the Form W-2 wages you paid to your employees.


