FDAnews Device Daily Bulletin

NEW TAX LEGISLATION IN U.S. HOUSE OFFERS INCENTIVES FOR DEVICE GROWTH

May 5, 2006
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New legislation to change the tax code should help medical device and biotech companies more easily attract and access funding while investing in R&D.

Introduced by Rep. Melissa Hart (R-Pa.) in the House Committee on Ways and Means, the "U.S. Healthcare Technologies Competitiveness Act of 2006" (HR 5115) would amend the Internal Revenue Code of 1986 to "modernize the tax treatment of biomedical research organizations." The bill is cosponsored by Reps. Philip English (R-Pa.) and Gerald Weller (R-Ill.)

The legislation seeks to update tax laws to eliminate investment disincentives and, if passed, would go into effect after Dec. 31.

"We applaud Representative Hart for introducing this important piece of legislation that will modernize U.S. tax laws. Her bill will help medical technology companies to more easily attract the capital they need to continue their work on behalf of patients and physicians in developing the next generation of lifesaving and life-enhancing innovations," said Stephen Ubl, president and CEO of industry association AdvaMed, April 7.

"This bill will eliminate disincentives in current tax laws that inhibit investment in medical technology companies and threaten America's position as the global leader in this vital sector," said Ubl.

The legislation lists two sections of provisions, one relating to corporate tax incentives and the other to investor tax incentives. ()a href="http://www.fdanews.com/ddl/33_18/" target=_blank>