Kelvyn Cullimore, President and CEO of BioUtah, issued the following statement on introduction in the House of Representatives of the Protect Medical Innovation Act of 2019, H.R. 2207, introduced by Reps. Ron Kind (D-Wis.) and Jackie Walorski (R-Ind.), to permanently repeal the medical device tax.
BioUtah applauds the bipartisan introduction in the House of the ‘Protect Medical Innovation Act’ to fully repeal the 2.3% excise tax on medical device sales. We appreciate the strong support of Utahs congressional delegation. Reps. Rob Bishop (R-UT), Chris Stewart (R-UT), John Curtis. (R-UT), and Ben McAdams (D-UT) were all original sponsors of the bill. Sen. Romney has cosponsored identical legislation in the Senate.
Unless Congress acts, the tax will again take effect January 1, 2020. This tax is unique in that it taxes sales and not profit. Therefore, smaller companies who have not yet achieved profitability or those who are marginally profitable are significantly harmed by this legislation. Research and development at larger companies is frequently victimized by this egregious tax. Now is the time to end this tax and provide companies the long-term certainty needed to propel new life-changing medical technology.
Utah boasts numerous medical device companies well-established in the state. Medical device development and manufacturing is an important part of the Utah economy, spurring innovation, creating jobs and importantly, advancing patient care. BioUtah looks forward to working with Congress to pass this critical legislation.
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- The medical device tax was enacted as part of the Affordable Care Act in 2010.
- The medical device tax was in effect from 2013 through 2015.
- The Consolidated Appropriations Act of 2016 suspended the tax for 2016/2017.
- The Making Further Appropriations for the Fiscal Year ending September 30, 2018 extended the suspension for another two years, 2018/2019.
BioUtah is an independent 501(c)(6) trade association serving Utahs life sciences industry. Its members are diverse, with strengths in medical device manufacturing and services, biotechnology, pharmaceuticals, diagnostics and healthcare IT, and are a key driver of Utahs economy. Together, we create an ecosystem that fosters collaboration, promotes innovation, and advances healthcare. BioUtah is committed to growing Utah into a global leader in the life sciences.