Manufacturing company tax option: flat-rate computation allowed subject to eligibility, deduction exclusions and irrevocable election A domestic manufacturing company incorporated after the specified commencement date may elect to compute tax at a flat statutory rate provided it is exclusively engaged in manufacture, research or distribution of its products, computes total income without certain specified deductions, and does not set off carried-forward losses attributable to those disallowed deductions; such attributable losses are deemed fully given effect and cannot be claimed later. The election must be made in the prescribed manner by the due date for the first return and, once made, applies to subsequent years and is generally irrevocable.