AdvaMed Welcomes Introduction of American Innovation and Jobs Act
WASHINGTON—AdvaMed® President and CEO Scott Whitaker welcomed the introduction of the bipartisan American Innovation and Jobs Act from U.S. Senators Todd Young (R-Ind.) and Maggie Hassan (D-N.H.). The legislation will expand and strengthen research and development (R&D) by small businesses and startups in the United States, a priority for medtech, more than 80 percent of which is small businesses and start-ups.
“Investments in research and development are critical to delivering innovative medtech solutions,” Whitaker said. “These investments represent a major, necessary expense for companies to develop novel, safe, and effective products to serve patients. Wherever appropriate, the tax code should promote investment in researching and developing the next generation of treatments for patients. AdvaMed thanks Senators Young and Hassan for their leadership in supporting medtech innovation.”
In 2017, Congress passed the Tax Cuts and Jobs Act, which included a provision that expired in 2022 allowing full expensing of R&D costs. The newly introduced bill would extend and make permanent that expired provision.
The provision is especially important to small and emerging medtech companies. Researching and developing technologies is a lengthy, expensive process that presents significant funding challenges for many small companies, given their narrow and sometimes pre-revenue operating margins.
Tax policies that support small businesses and startups are a priority in AdvaMed’s Medical Innovation Agenda for the 119th Congress.
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