Domestic Production Gross Receipts (DPGR) - Gross business receipts derived from domestic (U.S.) business activities. If "oil-related", the business activity is related to the domestic oil industry.
Why is this reported?
To calculate a domestic production activities deduction (DPAD).
Your DPAD is generally 9% 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 can't be more than 50% of the Form W-2 wages you paid to your employees (including Form W-2 wages allocated to you on a Schedule K-1).
From the IRS Instructions for Form 8903,
Domestic Production Gross Receipts (DPGR):
Generally, your gross receipts (defined below) derived from the following activities are DPGR.
Construction of real property you perform in the United States in your construction trade or business.
Engineering or architectural services you perform in the United States in your engineering or architectural services trade or business for the construction of real property in the United States.
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Any lease, rental, license, sale, exchange, or other disposition of the following.
Qualifying production property you manufacture, produce, grow or extract in whole or in significant part in the United States. See Qualifying Production Property and Manufacturing, Producing, Growing, or Extracting, later, for details.
Any qualified film you produce.
Electricity, natural gas, or potable water you produce in the United States.
Note.For purposes of determining DPGR, the United States includes Puerto Rico, if a taxpayer has gross receipts (subject to tax under sections 1 or 11) from sources within Puerto Rico for the first eleven tax years beginning after December 31, 2005, and before January 1, 2017.
