SALT LAKE CITY--(BUSINESS WIRE)--Today, both the United States Senate and U.S. House of Representatives passed a Continuing Resolution (CR) to reopen the government. The CR includes a provision that provides a two-year suspension of the 2.3% excise tax on the sale of medical devices. The tax, first enacted as part of the Affordable Care Act (ACA), had gone into effect January 1, 2018, after Congress did not act to extend a moratorium on the tax that expired at the end of 2017. The CR delays the tax for 2018 and 2019, retroactive to January 1. Upon passage, Kelly Slone, President and CEO, BioUtah, issued the following statement.
“BioUtah welcomes passage of the two-year delay of the medical device tax. We’re grateful to Senator Orrin Hatch (R-UT), Representatives Mia Love (R-UT-04), John Curtis (R-UT-03) and the entire Utah congressional delegation for their unwavering support. This delay is of paramount importance to the numerous companies in our state, both large and small, that produce critical medical technologies to help patients live longer, healthier lives. Now, instead of preparing to pay the IRS, these companies can continue to focus on innovation and investment. Longer-term, the tax must be fully repealed to provide the certainty this industry needs to expand in Utah, deliver cutting edge breakthroughs and further advance health care worldwide.”
BioUtah is an independent 501(c)(6) trade association serving Utah’s life sciences industry. Our member companies reflect a broad spectrum of the industry with strengths in medical device manufacturing and services, research and testing, biotechnology, pharmaceuticals, advanced diagnostics and healthcare IT amongst others; and are a key driver of Utah’s economy.