Will GOP Tax Bills Bring a Gift for Medtech Startups?

A bill that would create an incentive for investment in high-tech startups stands a chance of passing if it’s attached to one of the tax bills moving through Congress. That’s the opinion of Justin Klein, MD, a partner at New Enterprise Associates, a large venture capital firm that’s a major investor in medtech. AdvaMed recently announced its support for H.R. 4175 — the Invest in Innovative Small Businesses Act — which would create a tax credit for investments in high-tech businesses, including pre-revenue medtech and diagnostics startups. The company must have fewer than 250 employees, be headquartered in the U.S., and have been in existence for less than 12 years. The credit would be equal to 25% of the investment and be temporary and capped. Over the lifetime of the investor, the total amount of credits would be limited to $25 million, and to no more than $5 million in a single year. Reps. Jason Smith (R-Mo.) and Brad Schneider (D-Ill.) introduced the bill in the House of Representatives on Oct. 31.  Don't miss your chance to network with your medtech colleagues in Silicon Valley at the BIOMEDevice San Jose Expo and Conference, December 6–7.  Use promo code "MDDI" for free expo access and 20% off conference registration. “I think H.R. 4175 would have a very meaningful impact on the medical device sector,” Klein wrote in an email. “All of our pre-revenue stage medical device companies are spending between $5M and $25M or more annually to fund their prog...
Source: MDDI - Category: Medical Devices Tags: Medical Device Business Source Type: news