But just as importantly, you want to get a feel for the types of projects that qualify so that, as you're performing work throughout 2009, you can start to flag certain projects, making your life easier when the next tax season rolls around.

Want some more good news? The Domestic Production Activities Deduction increases to 9% in 2010-what will hopefully be a much more prosperous time for the construction segment of the landscape industry.

How it Works
Let's say a contractor is doing a $50,000 landscaping job on a new commercial property that's being built. What would his deduction be?

• First of all, we're going to assume his direct costs on the job are 55%, or $27,500
• That means his gross profit on the job is $22,500
• After consulting his accountant, he determines that $10,000 of his annual overhead should be allocated to this job - so net income on the job is $12,500
• $12,500 x 6% = deduction is $750

CPA Michael Napolitano says there are a couple more things to consider, though, before the deduction is legit:

• The Domestic Production Activities Deduction is only available to businesses with employees whose W-2 wages are reported to Social Security
• If the total of your Domestic Production Activities Deductions exceed 50% of the W-2 wages or your personal taxable income, your deduction is the latter (the smaller of the two)