The Advanced Medical Technology Association (AdvaMed) today issued the following statement by Ashley Wallin, executive director of AdvaMed’s Emerging Growth Company Council, on upcoming action by the House of Representatives to address section 168 of the tax code:
“AdvaMed commends the House for taking action on legislation to address another component of the tax code that is important to innovative and emerging growth medical technology companies.
“AdvaMed supports H.R. 4718, introduced by Rep. Pat Tiberi (R-Ohio), to permanently increase to 50 percent the amount of depreciating value in a business asset that a firm may deduct in the first year. Known as ‘bonus depreciation,’ this accelerated depreciation rate is another expired provision of the tax code that should be renewed and made permanent to help spur investment and American job creation.
“Similar to H.R. 4457, which addresses section 179 of the tax code and which passed the House in June, H.R. 4718 would provide needed certainty for tax planning purposes and allow companies – including entrepreneurial developers of advanced medical technologies – to invest more heavily in their businesses while encouraging growth across the country.
“As Congress continues to take up legislation to address America’s tax code, it remains essential that this effort also include repeal of the innovation-crushing medical device tax. Earlier this year, House Ways and Means Committee Chairman Dave Camp (R-Mich.) included device tax repeal as part of his fundamental tax reform plan and we continue to encourage Congress to act now to repeal this job-killing tax.”