|
|
Massachusetts Enacts Tax Credit for Medical Device User Fee Payments
Incentive is the First-of-its Kind in the Nation
On Saturday, July 8, Massachusetts Governor Mitt Romney signed legislation
into law that establishes a state tax credit for payment of medical device
user fees to the FDA. The legislation, originally developed and proposed
by MassMEDIC, was passed by the legislature as part of an economic stimulus
bill approved last month.
The newly-enacted law will grant Massachusetts medical device
manufacturers a 100% tax credit for user fee payments associated
with 510(k) or PMA products developed or manufactured in this state. The
law also allows companies that cannot use the tax credit, due to lack
of revenue, to sell their credits to third parties. This provision was
designed to assist early-stage companies that are introducing their first
product to market.
The medical device user fee payment tax credit, the first of its
kind in the country, will take effect immediately and will be
administered by the Massachusetts Department of Revenue (DOR). In the
coming weeks MassMEDIC will work with the DOR to implement the tax credit
in a timely fashion and to inform Massachusetts' medtech OEMs of its availability.
This fall, MassMEDIC will conduct a seminar with KPMG to provide further
details on the tax credit to members. More information on that session
will be forthcoming.
|
|
|
