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House Tax Bill Adds Another Five Years to Medical Device Tax Moratorium

December 17, 2018 in Life Sciences News by Blaire Wachter

On December 10, the House Ways and Means Committee released tax legislation that includes an extension of the medical device tax moratorium. Specifically, the extension would add another five years to the current two-year delay, providing relief until 

January 1, 2025.

BioUtah applauds this action and urges Utah’s U.S. Senators and Representatives to move on this legislation in a timely manner. News of the five-year extension came as a broad coalition of health care organizations sent a letter to Congress urging repeal of the tax. BioUtah signed onto the letter.

“This is a critical issue for Utah’s medical device industry,” said Kelvyn Cullimore, President & CEO of BioUtah. “The device tax has a chilling effect on innovation and stymies economic growth. If enacted, the additional five-year delay will give companies the certainty they need to invest in long-term R&D, and ultimately deliver new breakthroughs in patient care.”

The 2.3% excise tax on the sale of medical devices was first enacted as part of the Affordable Care Act in 2010. AdvaMed released a statement upon release of the proposed tax package, praising the Committee’s action to extend the moratorium.

BioUtah stands ready to work with Congress to pass the extension and provide much needed breathing room for the industry.