Lawmakers Dangle 10% Rate for Some Tech Profit in U.S. Tax Plan
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U.S. companies would be eligible for a discounted 10 percent tax rate on a portion of profits from patents, formulas and other intellectual property in a plan that marks a major step toward a revamp of international tax rules.
The proposed “innovation box” released Wednesday by Representatives Charles Boustany and Richard Neal would provide a significant incentive for companies to generate profits in the U.S. and receive a discount off the 35 percent corporate tax rate. The draft plan will invite a lobbying push in coming months as companies seek to ensure their income qualifies for the low tax rate.