Medical Device Excise Tax Delayed until 2020

Medical Device Excise Tax Delayed until 2020

February 5, 2018

On January 22, 2018, President Trump signed a three-week federal funding bill, HR 195, into law. The bill includes a legislative change that’s of particular importance to Medical Device companies—a two-year continued suspension of the medical device excise tax (MDET).

Background

The MDET was enacted as part of the Affordable Care Act. The MDET was previously suspended for 2016 and 2017, and the current legislation suspend it for an additional two years—2018 and 2019.

Impact

This change will affect all medical device companies, which will no longer need to pay an excise tax in 2018 and 2019. The MDET will be reinstated on January 1, 2020, unless a permanent repeal takes place before that date.

We’re Here to Help

We’ll continue to monitor any developments concerning the future of MDET. If you have any additional questions or would like to learn more about how this change could affect you, please contact your Moss Adams professional or Rich Croghan at richard.croghan@mossadams.com.

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