Protect Medical Innovation Act

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Written by Peter J. Scalise | Posted in Federal • Tax Policy

On Thursday, June 18^th The House of Representatives passed H.R. 160 entitled “The Protect Medical Innovation Act of 2015” (hereinafter “PMIA”) by a vote of 280 to 140 in an attempt to repeal the medical device excise tax that was introduced in H.R. 3590 entitled “The Patient Protection and Affordable Care Act of 2010” (hereinafter “PPACA”).

PMIA was introduced by Republican Erik Paulsen, R-Minn., a member of the tax-writing House Ways and Means Committee. PMIA aims to repeal the 2.3 percent excise tax on medical devices, such as pacemakers and operating-room monitors. The legislation now heads to the Senate floor for deliberations where repealing the medical device tax also has bipartisan support. Republican Erik Paulsen indicated in a statement “as a country, we take great pride in our ability to create, invent, and innovate—especially when it comes to products that improve people’s lives. The medical device tax stands in direct contrast to this ideal, which is why you’ve seen Members of Congress from across the political spectrum support its repeal. It’s time to push this legislation across the finish line and support American jobs and innovation.

The House Ways and Means Chairman Paul Ryan, R-Wis., in a statement after the bill was passed indicated “taxing medical devices not only stifles innovation and threatens American jobs, but drives up health care costs and makes treatments less accessible for those who need them most. By repealing this tax, American medical innovation can refocus on encouraging discovery and finding solutions for the health challenges—and emergencies—so many Americans face. I applaud Republican Paulsen for his work on this legislation, and I’m proud to support it.”

As a caveat, both the House of Representatives and the Senate must still agree on a unified bill to send to the President’s desk for signature into law. For complete legislative updates from the Hill please follow Peter J. Scalise at https://www.taxconnections.com/profile/Peter-J-Scalise/12259077

Peter J. Scalise

Peter J. Scalise serves as the Federal Tax Credits & Incentives Practice Leader for Prager Metis CPAs, LLC a member of The Prager Metis International Group. Peter is a highly distinguished BIG 4 Alumni Tax Practice Leader and has approximately twenty years of progressive public accounting experience developing, managing and leading multi-million dollar tax advisory practices on both a regional and national level.

Peter is a highly acclaimed thought leader in the fields of accounting and taxation with deep subject matter expertise in connection to designing, implementing and defending sustainable methodologies for specialty tax incentives including, but not limited to, research tax incentives; orphan drug credits; therapeutic discovery credits; accounting methods and periods; energy tax incentives in connection to green building envelope efficiency and benchmarking, solar energy, bio energies, fuel cells, wind turbines, micro turbines, and geothermal systems; and comprehensive fixed asset analysis incorporating principles of construction tax planning, cost segregation analysis and the final treasury regulations governing tangible property.

Peter is a renowned keynote speaker and an extensively published author on specialty tax incentives, tax controversy matters, and legislative updates from Capitol Hill for NAREIT, AGRION, USGBC, AICPA, ASTP, NATP, ABA, AIA, and TEI. Peter serves as a member of the Tax Faculty for CPAacademy, iShade and TaxConnections University (“TCU”). Peter serves on both the Board of Directors and Board of Editors for The American Society of Tax Professionals (“ASTP”) and is the Founding President and Chairman of The Northeastern Region Tax Roundtable.