In terms of the effect of DPAD,the maximum tax savings for a corporation with $15 million of taxable income is $472,500 in 2012.

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The Domestic Production Activities Deduction (DPAD) allows corporations to deduct a percentage of income from domestic production activities. This percentage increased from 9% to 9.5% in 2012, allowing for a maximum tax savings of $472,500 for a corporation with $15 million of taxable income that qualifies for the full deduction. Therefore, the statement is true.

In Terms of the Effect of DPAD,the Maximum Tax Savings