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A U.S. Patent Box: Issues (CRS Report for Congress)

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Release Date Oct. 15, 2015
Report Number IN10289
Report Type Insight
Source Agency Congressional Research Service
Summary:

Congressional interest in a tax subsidy that would impose a lower rate on certain income from intellectual property (frequently referred to as "intangibles") has appeared in past legislative proposals and continues to attract interest as a part of tax reform. Past congressional proposals for the subsidy (known as a patent or innovation box) include proposed legislation by Senator Feinstein and a bill introduced by Representative Schwartz in the 113th Congress (H.R. 2605). The Feinstein proposal would have provided a 15% tax rate on income from patents developed and used for manufacture in the United States, whereas H.R. 2605 would have allowed a 71% deduction of income, which produces an effective 10% rate.