Medical-device lobby groups said it was too soon to know how helpful the proposed R&E tax-credit expansion would be in spurring product innovation and job growth. But at least one organization was encouraged. “AdvaMed has long supported making the R&D credit permanent,” said Brett Loper, senior executive vice president of government affairs for the Advanced Medical Technology Association. “We look forward to seeing the details of this new proposal and the other tax changes being discussed today to determine how they will affect America's medical technology companies.”
But a spokeswoman for the National Venture Capital Association, which recently launched the Medical Innovation & Competiveness Coalition, a newly formed lobby organization, said the plan announced today would mostly benefit large devicemakers, not startup companies. “What our experience has been is that if a company is not profitable and paying taxes, they wouldn't be eligible” for the credits, said NVCA spokeswoman Emily Mendell. Those companies, she added, are waiting to see the outcome of a small business aid bill that is currently before the Senate.