On July 29. 2015, the House Ways and Means Committee announced that some members had drafted a bill calling for an innovation box (aka patent box), similar to what is used in a few others countries, such as the UK. Chairman Ryan praised the bill as relevant to international tax reform and helping US companies be more competitive.
The proposal has two parts:
1. 71% deduction of the lesser of (a) “innovation box profit for the year” or (b) taxable income (without the deduction).
2. Provision to allow US companies to bring back to the US foreign intellectual property tax free. Read more