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ARTICLE · 31 JULY 2015

Innovation Box Regime Proposed For US Tax Code

Mayer Brown
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US Congressman Charles W. Boustany Jr. (R-La) and Congressman Richard Neal (D-Mass), both senior members of the Ways and Means Committee, released draft legislation that would create an "innovation box regime" in the US tax code.

United StatesTax
Warren Payne
Warren Payne
Jason Osborn
Jason Osborn
Kenneth Klein
Kenneth Klein
Binyomin Koff
Binyomin Koff
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Keywords: US tax code, patent box regime, innovation box profits

US Congressman Charles W. Boustany Jr. (R-La) and Congressman Richard Neal (D-Mass), both senior members of the Ways and Means Committee, released draft legislation that would create an "innovation box regime" in the US tax code. The release of the legislation follows a recommendation by bipartisan Senators for the creation of a US patent box regime. The Congressmen have requested that interested stakeholders provide feedback and comments on their legislative proposal.

Summary of Proposal

The legislation would:

  • Provide a 71 percent deduction on the lesser of qualified innovation box profits or total taxable income.

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