Rejoice, Medical Device Inventors, REJOICE: You Have Some Tax Relief!
Inventors and Entrepreneurs around America have welcomed the two-year suspension of the Medical Device Tax that will most likely increase R&D investments and job creation. This is a major milestone event in the medical device intellectual property arena that all inventors should be following, especially if you are in the early stages of seeking out venture capital to grow or market your idea.
Recent surveys confirm that three out of four innovators said that they would make additional investments in job creation and R&D if the device tax was permanently repealed, as opposed to a temporary suspension.
Additional facts emerged from the surveys including:
- 70 percent of companies increased hiring and created new jobs as a result of the suspension
- 73 percent of pre-revenue companies noted that suspension of the device tax has improved the climate for raising capital and funding
- When asked how much respondents have increased their R&D budget, the average increase was 19 percent
“Both the Senate and the House of Representatives have recently made it clear that there is broad, bipartisan agreement that the medical device tax needs to be repealed,” said Mark Leahey, President and CEO of MDMA. “While much of the damage caused when the device tax was in place cannot be undone, today med tech innovators are investing the additional resources in communities throughout the United States. Congress needs to put a permanent end to what they agree is a misguided and destructive policy.”
For those entrepreneurs and inventors with a further interest in how tax law affects innovation, check out this recent article on The Patent Professor, How Does Tax Affect The “Superstar” Immigrant Inventor
If you have personal comments and or questions regarding the above please contact me using this web form. I will be glad to go over the long-term implications and opportunities afforded by this tax ruling.