California Life Sciences Association (CLSA) Praises House Action to Fully Repeal Medical Device Tax

House overwhelmingly passes year-end spending deal that includes a permanent repeal of the 2.3% medical device tax, Senate likely to approve

WASHINGTON, SAN FRANCISCO & SAN DIEGO–(BUSINESS WIRE)–#Devicttax—California Life Sciences Association (CLSA), the trade association representing California’s life sciences sector, today applauded the U.S. House of Representatives’ passage of legislation to fully and permanently repeal the job and innovation hindering 2.3% medical device excise tax levied on medical technology companies. The device tax repeal provision was included in H.R. 1865, a bipartisan, bicameral, year-end spending package which passed by a vote of 297-120. H.R. 1865 now awaits U.S. Senate action, where it is expected to be passed and signed into law by President Donald Trump.

This statement can be attributed to Mike Guerra, President & CEO, California Life Sciences Association:

“California Life Sciences Association (CLSA) applauds the U.S. House of Representatives’ passage of legislation that permanently cancels the ill-conceived 2.3% medical device tax so that it cannot further hinder innovation and investment in medical technology research and development. For nearly a decade, our trade association has consistently led the charge in educating the California Congressional Delegation on the perils of this tax on innovation, and the harm it brings to patients waiting for new treatments. CLSA, our Board of Directors, and broad membership of biomedical innovators welcome today’s news.

“Full repeal of the medical device excise tax will not only benefit patients in California and around the world, but it will also be a shot-in-the-arm to medical technology innovators, encouraging them to do what they do best: create good-paying jobs and invest in cutting-edge science to develop new technologies that improve human health.

“Since its inception, there has been increasing bipartisan, bicameral support to scrap the medical device tax. Full and permanent repeal is critical to ensuring that the U.S. does not jeopardize our position as a global leader in medical technology innovation. We extend our heartfelt gratitude to the 27 bipartisan members of the California Congressional Delegation who have supported the free-standing legislation to repeal the tax – H.R. 2207, the Protect Medical Innovation Act. We also thank and acknowledge Speaker of the House of Representatives Nancy Pelosi (D-San Francisco) and House Republican Leader Kevin McCarthy (R-Bakersfield) for ensuring this critical provision was included in the year-end spending package. We eagerly await U.S. Senate passage of this package to repeal the medical device tax once and for all.”

A full list of the California Members of Congress who supported H.R. 2207, the Protect Medical Innovation Act, legislation to repeal the medical device tax is as follows:

Reps. Pete Aguilar (D-Redlands), Nanette Diaz Barragan, Ami Bera, MD (D-Sacramento), Julia Brownley (D-Thousand Oaks), Ken Calvert (R-Corona), Salud O. Carbajal (D-Santa Barbara), Tony Cárdenas (D-San Fernando Valley), Gilbert Ray Cisneros, Jr. (D-Fullerton), Paul Cook (R-Apple Valley), J. Luis Correa (D-Santa Ana), TJ Cox (D-Selma), Susan A. Davis (D-San Diego), Josh Harder (D-Modesto), Duncan D. Hunter (R-El Cajon), Ro Khanna (D-Sunnyvale), Doug LaMalfa (R-Chico), Mike Levin (D-San Juan Capistrano), Ted Lieu (D-Santa Monica), Tom McClintock (R-Roseville), Devin Nunes (R-Fresno), Scott H. Peters (D-San Diego), Katie Porter (D-Irvine), Harley Rouda (D-Newport Beach), Raul Ruiz, MD (D-Palm Desert), Jackie Speier (D-San Francisco/San Mateo Counties), Eric Swalwell (D-East Bay/Dublin), and Norma J. Torres (D-Pomona).

Impact of the Tax: According to CLSA’s 2019 California Life Sciences Industry Report, California is home to over 1,800 medical device firms employing more than 81,000 people – more firms and employees than any other state in the nation, and representing over 19% of the nation’s med-tech workforce – making the impact of the tax on our state particularly troublesome.

• Click here to view a recent San Francisco Chronicle op-ed on the impact of the medical device tax.
• Click here to view a recent multi-sector stakeholder letter cosigned by more than 600+ organizations, including nearly 300 from California.
• Click here to view CLSA’s letter of endorsement for H.R. 2207, the Protect Medical Innovation Act, a bill to fully and permanently repeal the medical device excise tax
• Learn More about the California life sciences sector
• View CLSA’s Legislative Action Center
• Watch CLSA’s Faces of California Biomedical Innovation Web Series
• View Upcoming CLSA events
• Meet the CLSA Board of Directors

About California Life Sciences Association (CLSA)

California Life Sciences Association (CLSA) is the state’s largest and most influential life sciences advocacy and business leadership organization. With offices in Sacramento, San Diego, South San Francisco, Los Angeles and Washington DC, CLSA works closely with industry, government, academia and others to shape public policy, improve access to innovative technologies and grow California’s life sciences economy. CLSA serves biotechnology, pharmaceutical, medical device and diagnostics companies, research universities and institutes, investors and service providers throughout the Golden State. CLSA was founded in 2015 when the Bay Area Bioscience Association (BayBio) and the California Healthcare Institute (CHI) merged. Visit CLSA at www.califesciences.org, and follow us on Twitter @CALifeSciences, Facebook, Instagram, LinkedIn and YouTube.

Contacts

California Life Sciences Association (CLSA)

Will Zasadny | Director, Communications

wzasadny@califesciences.org | 619-961-8848