Archives: Federal Taxation

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Medical Device Tax Repeal Included in the American Health Care Act

On March 9, the House Energy and Commerce Committee and the House Ways and Means Committee favorably reported out the American Health Care Act (AHCA) — the Republican Affordable Care Act (ACA) repeal legislation.  The AHCA includes a provision to repeal the medical device excise tax, which was originally enacted as a cost savings component of the ACA.  … Continue Reading

Latest Proposal to Repeal Medical Device Excise Tax Gains Traction

On January 6, Representative Erik Paulsen (R-MN) introduced the latest bill to repeal the 2.3% excise tax on medical devices imposed by the Affordable Care Act, commonly referred to as “ObamaCare.”  Legislators have introduced similar legislation each year since the tax was passed in 2010.  The current bill (H.R. 160) has over 250 cosponsors, including … Continue Reading

Recent Action on Medical Device Tax

The medical device tax is back in the news, after recent congressional efforts to delay or repeal the tax.  The most recent efforts arose in the context of the “tax extenders” bill, which extends until the end of 2015 more than 50 tax provisions that are due to expire at the end of 2014.… Continue Reading

Medical Device Tax Repeal Not Included in Final Budget Agreement

We previously reported about the prominent role played by the medical device tax in the government shutdown/debt ceiling negotiations.   At various points, repeal of the medical device tax was included in proposed measures to fund the government.  When full repeal appeared to be off the table, several sources reported that Congress had considered a two-year … Continue Reading

Medical Device Tax Repeal Considered in Government Shutdown Negotiations

The medical device tax has played a prominent role in negotiations over the continued government shutdown.  We have previously discussed legislative efforts to repeal the medical device tax here and here. Just after midnight on Sunday, September 29, two days before appropriations were scheduled to lapse, the House of Representatives passed a continuing resolution to … Continue Reading

Congress to Hold Hearings on FDA Regulation of Mobile Medical Apps and Impact on Innovation

On March 19, 20 and 21, 2013, the Energy and Commerce Committee of the U.S. House of Representatives will hold a series of three hearings on “Health Information Technology to Explore Potential Regulations and Taxes on Smartphones, Tablets, and Mobile Apps.” The hearings will take place in three different Energy and Commerce subcommittees and will … Continue Reading

Legislation to Repeal Medical Device Tax Introduced

Two bills to repeal the medical device tax were introduced in Congress this month.  The device tax was enacted as part of the Affordable Care Act and finalized in IRS regulations late last year.  Representatives Erik Paulsen (R-MN) and Ron Kind (D-WI) introduced the “Protect Medical Innovation Act of 2013,” on February 6.  The House bill … Continue Reading

Device Companies May Seek an Increase in Federal Supply Schedule Contract Prices to Accommodate Device Tax

As we’ve previously described, Section 4191 of the Internal Revenue Code imposes a 2.3% excise tax on the sale of certain medical devices by the manufacturers/importers of the devices.  In December of 2012, the Internal Revenue Service (IRS) issued final regulations and interim guidance regarding the determination of sale price and other issues related to … Continue Reading

Medical Device Tax: IRS Issues Interim Guidance

This blog post continues our series looking at the final regulations on the excise tax imposed on the sale of certain medical devices under section 4191 of the Internal Revenue Code.  We previously reported on the final regulations here. On Wednesday, December 5, in addition to releasing the final rule, the IRS issued interim guidance … Continue Reading

IRS Issues Final Medical Device Excise Tax Regulation

On December 5, 2012, the IRS issued final regulations on the excise tax imposed on the sale of certain medical devices under section 4191 of the Internal Revenue Code (Code).  The regulations resolve numerous ambiguities relating to when a manufacturer, producer, or importer of a “taxable medical device” must pay the medical device excise tax.  … Continue Reading
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