Pursuant to legislation (H. 4297) signed by Gov. Deval Patrick on July 24, 2014, the commission will examine various factors regarding the feasibility of such tax credit, including the following:
- The potential cost to Massachusetts;
- The potential benefit derived by affected businesses; and
- The economic impact on Massachusetts of instituting such tax credit.
The commission will be made up of the following individuals:
- The secretaries of administration and finance and of housing and economic development, or their designees, who shall be the as co-chairs of the commission;
- The house and senate chairs of the joint committee on revenue;
- The house and senate chairs of the joint committee on economic development and emerging technologies;
- One member of the senate to be appointed by the minority leader and one member of the house of representatives to be appointed by the minority leader; and
- Industry representatives of the following institutions:
- The Massachusetts Medical Society;
- The Massachusetts Medical Device Industry Council, Inc. (MassMEDIC);
- The Associated Industries of Massachusetts, Inc.; and
- The Donahue Institute at the University of Massachusetts.
The commission has until June 30, 2015, to file a report about its findings, including any legislative recommendations.
“By authorizing this commission, Governor Patrick and the State Legislature recognize the serious effect the federal device tax has had on MedTech companies in Massachusetts,” said MassMEDIC President Tom Sommer in a statement on the MassMEDIC website. “Millions of dollars are leaving this state that might have been spent on research and development of technologies that improve the quality of health care delivery. MassMEDIC looks forward to participating in the panel’s work and will make the case for a meaningful tax credit that could help mitigate the impact of the device tax.”
The final text of the bill, as approved by the Legislature and signed by the Governor, is available in attachment F to the governor’s recommendations and amendments to the 2015 fiscal year budget.