innovation box - The S Corporation Association

Legislative Update: The Pre-Thanksgiving Edition

We’re tracking two key tax items at the moment – tax extenders and international reform. Here’s our outlook for both.

For extenders, Congress has once again ignored the needs of American businesses by delaying adoption of a multi-year extender package until the last possible moment. What’s the point of encouraging businesses to invest in new equipment if those provisions are enacted only retroactively? Not only does it undermine the policy, it creates a dynamic where pass through owners are required to overpay their taxes over the course of the year, draining money from their businesses and reducing their ability to hire …

(Read More)

admin2019-02-01T19:59:03+00:00November 18, 2015|

S-Corp Comments on Innovation Box

The S Corporation Association submitted comments today to Ways and Means Committee Members Rep. Charles Boustany (R-LA) and Rep. Richard Neal (D-MA), sponsors of the draft “Innovation Promotion Act of 2015.”

As you’ll recall, the two members released a “discussion draft” of their innovation box idea back in July and asked stakeholders to weigh in. The box itself offers US firms a lower tax rate on some income derived from the use of patents, inventions, formulas, etc. Our friends at the Tax Foundation identified three motivating factors in the introduction of the box:

The U.S. tax code has become …

(Read More)

admin2019-02-01T19:59:04+00:00September 10, 2015|

Recap of a Busy Week in Tax Policy

Patent/Innovation Box

Rep. Charles Boustany (R-LA) and Rep. Richard Neal (D-MA) unveiled their proposed “innovation box” legislation aimed at keeping intellectual property registered in the United States. The bill would lower the rate on qualified income from patents and intellectual property to 10 percent, but only for firms with domestic R&E expenses. Similar laws already exist in Europe, and there are signals that this could become part of a Ways and Means international tax package later this year. Here’s Chairman Ryan on the proposal:

The proposal from Reps. Boustany and Neal can help us stem the tide and protect good American jobs. It …

(Read More)

admin2019-02-01T19:59:04+00:00July 31, 2015|