Published on December 31, 2019 by Michael Goot
GLENS FALLS — Economic development officials and elected officials hope the repeal of the medical device tax will help local manufacturers.
The recently passed spending bill repealed the 2.3% excise tax on medical devices, which was enacted in 2013 as part of the Affordable Care Act. The tax had been suspended for the past four years and was scheduled to be reinstated on Jan. 1 without congressional action.
“This would have been a disaster for a multitude of firms in our area,” said EDC Warren County President Edward Bartholomew.
Among the companies that would have been affected in the greater Glens Falls area are AngioDynamics, BD, Medline, Molder Devices Inc., Sterigenics and Praxix. Those firms employ about 2,500 people, according to Bartholomew.
AngioDynamics was able to hire 10 to 15 people during the period the tax was suspended and allocate more funds for research and development, Bartholomew said.
Bartholomew thanked U.S. Sen. Charles Schumer, D-N.Y., for leading a bipartisan effort to repeal the tax. The repeal legislation also had the support of U.S. Sen. Kirsten Gillibrand, D-N.Y. and U.S. Rep. Elise Stefanik, R-Schuylerville.
The repeal was included in the federal spending bill signed by President Donald Trump.
Schumer said the repeal will save the companies resources they can use to reinvest in their workers, for research and development and plant and equipment upgrades.
“The repeal of the medical device tax is wonderful news for upstate New York companies and the many thousands of workers in those firms, like AngioDynamics, Welch Allyn, Conmed, Harmac, BD, and more, which can now more easily compete with overseas competition,” he said in a news release.
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