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.
The material appearing in this communication is for informational purposes only and should not be
construed as legal, accounting, tax, or investment advice or opinion provided by Moss Adams LLP.
This information is not intended to create, and receipt does not constitute, a legal relationship,
including, but not limited to, an accountant-client relationship. Although these materials have been
prepared by professionals, the user should not substitute these materials for professional services,
and should seek advice from an independent advisor before acting on any information presented.
Moss Adams LLP assumes no obligation to provide notification of changes in tax laws or
other factors that could affect the information provided.
Assurance, tax, and consulting offered through Moss Adams LLP. Investment advisory services offered through Moss Adams Wealth Advisors LLC. Investment banking offered through Moss Adams Capital LLC.