Tax Strategy Patent Legislation in Prior Congressional Sessions 


    111th Congress

      H.R. 2584 - Boucher-Goodlatte 2009 Bill to Prohibit Tax Strategy Patents

    On May 21, 2009, Rep. Rick Boucher (D-VA) introduced HR 2584, a bill to prohibit tax strategy patents. It is identical to Section 10 of HR 1908, the Patent Reform Act of 2007 that passed the House in the last Congress, and similar to S. 2369, which Senators Baucus and Grassley introduced in the 110 th Congress. There were 4 original cosponsors to the bill – Reps. Bob Goodlatte, Brad Sherman, John Spratt, Jr., and Walter Jones, Jr.


    S. 506 and H.R. 1265 - Section 303

    Section 303 of The Stop Tax Haven Abuse Act (S. 506, introduced by Senators Levin, McCaskill, Nelson, Shaheen, and Whitehouse, and H.R. 1265, introduced by Rep. Doggett) would stop tax shelter patents by prohibiting the U.S. Patent and Trademark Office from issuing patents for "inventions designed to minimize, avoid, defer, or otherwise affect liability for Federal, State, local, or foreign tax."   For more info, see www.Levin.senate.gov.


    110th Congress


    S. 2369 -
    Senate Introduces Bill Banning Tax Strategy Patents

    On November 15, 2007, Senate Finance Committee leaders, Chairman Senator Max Baucus of Montana and ranking-minority member Senator Chuck Grassley of Iowa, introduced S. 2369, a bill that would prohibit patents on tax planning inventions. The AICPA is urging the Senate to pass the bill, which is similar to the ban in the broad patent reform bill (H.R. 1908), which passed the House in September of this year.   Both bills would still allow patents to be granted for tax preparation software products. The bill has as c o-sponsors:   Democratic Senator Carl Levin of Michigan, Senator Ron Wyden of Oregon, Senator Barack Obama of Illinois, and Senator Jeff Bingaman of New Mexico.  We thank them for their leadership and support. Currently, at least 60 tax strategy patents have already been granted and 101 more are pending.


    H.R. 1908 - House
    Passes Tax Strategy Patent Amendment to Patent Reform Act of 2007

    On September 7, 2007, the House passed the Patent Reform Act of 2007 (H.R. 1908), including the AICPA-supported provision prohibiting tax strategy patents. The bill will go to conference once the Senate finalizes its patent reform bill (which does not yet contain a tax strategy patent provision). This amendment would make any tax planning methods, whether federal, state, local or any other government levy, unpatentable effective upon enactment of the bill. Tax preparation software and other tools used solely to perform or model mathematical calculations or prepare tax or information returns would not be affected. 


    S. 861, Section 303

    Section 303 of The Stop Tax Haven Abuse Act (S. 681, introduced by Senators Levin, Coleman, and Obama and H.R. 2136, introduced by Rep. Doggett) would stop tax shelter patents by prohibiting the U.S. Patent and Trademark Office from issuing patents for "inventions designed to minimize, avoid, defer, or otherwise affect liability for Federal, State, local, or foreign tax." 


    Tax Strategy Patent Immunity Legislation

    Rep. Boucher Introduced Tax Strategy Patent Bill Sought by AICPA

    Senior members of the House Judiciary Committee have introduced HR 2365, legislation sought by the AICPA to limit damages and other remedies with respect to patents for tax planning methods.


    Other Legislation and Related Items

    From the House Ways and Means Oversight Subcommittee Hearing on Issues Relating to the Patenting of Tax Advice, July 13, 2006.  

    Note:  See Current 112th Congress Legislation regarding Tax Strategy Patents.




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