Suspension of Medical Device Tax Proposed
Thursday, December 17, 2015
Congressional negotiators have reached an agreement on a large-scale tax extenders package as part of an omnibus government appropriations bill.
A two-year delay of the medical device tax for 2016-17 is included in this package (Section 174). While MichBio and its national/regional device industry partners continue to support full repeal of the medical device tax, this suspension of the tax is an important and significant step forward in that effort. It’s an important step in addressing the harmful effect the tax is having on research and development and continued medical progress.
MichBio is in touch with our U.S. House and Senate contacts to encourage their support for the extenders package and the included device tax suspension. The timeline for consideration is very tight – we expect House passage on December 17 and Senate approval by the end of the week.
It is expected that the House will vote on this legislation, known as the PATH Act, by December 17, which will be followed by Senate action soon thereafter. We are closer than we have ever been in getting relief from this punitive tax, and it is due in large part to the passionate advocacy of the med tech community. While short of the full repeal we have been seeking, this is an important first step in repealing this tax outright. In addition, making the R&D tax credit permanent will provide additional certainty that med tech innovators need to succeed.
PLEASE TAKE 5 MINUTES to click the link below to send a letter to your Member of the House and Senators to urge them to vote “YES” on the PATH Act and suspend the medical device tax and make the R&D tax credit permanent.
To send a letter to your Congressional delegation, please CLICK HERE.
Thank you for your support of our efforts and please do not hesitate to contact the MichBio with any questions.