US lawmakers studying patent box tax approach

New York

US lawmakers are exploring a new corporate tax break that would benefit companies already adept at avoiding taxes.

The idea - known as a patent box or innovation box - would impose a lower tax rate on income generated from patents and other intellectual property housed in the US. This would aid technology and pharmaceutical companies trying to maintain low tax rates that they've achieved by booking income in overseas tax havens.

The so-called innovation box also is attractive to lawmakers in both parties worried that companies can easily move income outside the US and …