A bill proposed by Kevin Brady (R-TX) is designed to provide a permanent R&D tax credit. H.R. 942, the American Research and Competitiveness Act has drawn immediate support from bipartisan representatives in California, Texas, and Minnesota, as well as industry associations AdvaMed and the Medical Device Manufacturer's Asociation (MDMA).
The tax credit would be extended to all types of companies investing in research and development. Large medtech companies spend 8%–13% of their annual revenue on R&D, says a report from the Star Tribune. Small firms often spend even greater amounts, meaning the medical device industry could see terrific benefits if the bill passes.
Such research tax credits are common, but are usually short term. The United States has funded 14 such programs within the last 30 years.
The proposed bill strengthens the amount companies can recoup for investing in R&D from the current 14...