SAN DIEGO--(BUSINESS WIRE)--Biocom, the association representing the life science industry of California, issued the following statement regarding the two-year suspension of the medical device tax included in H.R. 195, legislation to end a government shutdown. The statement can be attributed to Joe Panetta, Biocom’s president and CEO:
“Today, the Senate, followed by the House, passed legislation to fund the government until February 8, which also provides for a two-year retroactive delay of the medical device tax. The 2.3 percent excise tax on the sale of medical devices was reinstated on January 1, 2018, after a bipartisan two-year suspension ended in December of last year, and was expected to cost up to 25,000 jobs by 2021 and reduce future investments in research and development (R&D).
“Biocom commends lawmakers for providing relief to medical device manufacturers. The medical device tax increases the effective tax rate for the medical technology (medtech) industry and stifles innovation by taking financial resources away from R&D investments, capital expansion and hiring. It is especially burdensome for small companies that are not yet profitable because it is a tax on revenue, not on profit.
“Suspending the tax will ensure that the more than 2,000 medtech establishments in California will continue to have the resources to develop the breakthrough products and technologies that are needed by millions of patients around the world. Nevertheless, Biocom continues to support permanent repeal of the tax and looks forward to working with Congress to provide permanent relief.”
Biocom is the largest, most experienced leader and advocate for California’s life science sector. We work on behalf of more than 1,000 members to drive public policy, build an enviable network of industry leaders, create access to capital, introduce cutting-edge STEM education programs, and create robust value-driven purchasing programs.
Founded in 1995 in San Diego, Biocom provides the strongest public voice to research institutions and companies that fuel the local and statewide economy. Our goal is simple: to help our members produce novel solutions that improve the human condition. In addition to its San Diego headquarters, Biocom operates a core office serving the Los Angeles market, satellite offices in Washington, D.C. and Tokyo, and has a continuous staff presence in the San Francisco Bay area and Sacramento. Our broad membership benefits apply to biotechnology, pharmaceutical, medical device, genomics and diagnostics companies of all sizes, as well as to research universities and institutes, clinical research organizations, investors and service providers.