Sinema-Backed Bill to Prevent Tax Increase on AZ Manufacturers Passes House

Sinema: Don’t Tax Innovation

Manufacturers of medical devices in Arizona would be spared a burdensome tax hike, thanks to a Sinema-cosponsored bill that passed the House today. The bipartisan Protect Medical Innovation Act repeals a tax on medical devices that has constrained manufacturers’ ability to innovate and create good-paying jobs.

“Manufacturers in our state should be free to grow, hire, and pioneer technology that improves lives without being burdened by additional, misguided taxes,” said Congresswoman Sinema. “Repealing this unnecessary tax on manufacturers is a commonsense solution that encourages innovation and provides access to life-saving medical technology.”

“Congresswoman Sinema understands the needs of businesses like ours,”said Vivek Kopparthi, Cofounder and CEO of Neolight, a Scottsdale-based medical device company specializing in treating newborns with life-threatening medical conditions. “The Medical Device Tax hurts NeoLight’s ability to innovate, bring life-saving products to market, and grow so we can bring more jobs to Arizona. We are trying to raise the bar of innovation and care in the newborn care market, where there is great need. We’re grateful to Congresswoman Sinema for her work to repeal this harmful tax and support our efforts to build an Arizona success story.”

The Medical Device Tax is a direct tax on the sale of certain medical devices, such as pacemakers, catheters, and artificial joints. The Sinema-supported legislation passed today permanently repeals the tax effective December 31, 2019. Medical technology supports 17,000 good-paying jobs in Arizona and contributes almost $3 billion to the state’s economy.