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Congress and White House Pass Legislation to Suspend 2.3% Medical Device Tax for Two Years BY ANDREW VAHRADIAN, DECEMBER 21, 2015

The House of Representatives and the Senate have both passed the Omnibus Appropriations Act, a $1.1 trillion funding bill that will negate another government "shut down" and keep the U.S. federal government functioning until September 30, 2016. Within this legislation is a provision to suspend the Affordable Care Act's 2.3% medical device excise tax for 2016 and 2017.

The tax, which pertains to domestic medical device sales, went into effect in January 2013, and although it has been apparent that an outright repeal of the tax has not yet garnered the necessary bipartisan support to pass the two levels of Congress, this is considered an important first step toward a complete repeal of the tax.

The act passed the House with a 316-113 vote and the Senate with a 65-33 vote. President Obama signed the bill into law on Friday, December 18th.

This two-year postponement of the tax should provide further financial flexibility to medical device manufacturers and research analysts predict that the median upside potential to public medtech companies' EPS (Earnings per Share) would be nearly 3.0% in 2016 and 2017.

The act goes into effect on January 1, 2016.

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