Unlike the House Tax Reform Legislation, HR 1, passed this past week, the Senate Finance Committee similarly passed its version of the tax reform legislation, which unfortunately contains specific language that repeals the IC-DISC provisions. The IC-DISC tax savings are achieved from a reduced 20% U.S. capital gains tax rate on at least half of the income derived from qualifying products, in lieu of the normal Federal tax rate which can be almost 40%. IC‐DISC stands for “Interest Charge – Domestic International Sales Corporation,” a tax incentive which was introduced by Congress in its current form in 1984. It was designed to provide a U.S. tax incentive to stimulate U.S. export activities. The IC‐DISC is relatively unknown and often overlooked because other alternative tax incentives were more often used until the last remaining alternative was eliminated in 2006. This is a critical tool for the tree nut industry, which exports the majority of its product. The California Cotton Ginners and Growers Association (CCGGA) is actively working against these provisions, through our Senate and House Representatives, and in conjunction with a national coalition working to preserve IC-DISC.