Contact:

Ben Veghte
NVCA
202.864.5923
bveghte@nvca.org


FOR IMMEDIATE RELEASE:

WASHINGTON, DC – The National Venture Capital Association (NVCA) today issued the following statement after Congress passed the combined omnibus spending and tax extender package which includes a two-year suspension of the medical device tax and permanence for the 100% exclusion from capital gains taxes for Qualified Small Business Stock (QSBS).

“Since its inception, the medical device tax has been a massive drain on medical device innovation, but has been particularly acute to venture-backed medical device startups due to the imposition of the tax regardless of whether they make a profit or not,” said Bobby Franklin, President and CEO of NVCA.  “A two year suspension will certainly help thaw the freeze and it’s our hope that during this period we can work to find a way for small medical device startups to be permanently protected from taxes that stifle innovation.  In addition, making the significant improvements to Section 1202 permanent is a step in the right direction to crafting a tax code that works for the entrepreneurial ecosystem.  We appreciate congressional action on this and look forward to working with lawmakers on tax reform that will encourage new business creation in America.”


About National Venture Capital Association

Venture capitalists are committed to funding America’s most innovative entrepreneurs, working closely with them to transform breakthrough ideas into emerging growth companies that drive U.S. job creation and economic growth. As the voice of the U.S. venture capital community, the National Venture Capital Association (NVCA) empowers its members and the entrepreneurs they fund by advocating for policies that encourage innovation and reward long-term investment. As the venture community’s preeminent trade association, NVCA serves as the definitive resource for venture capital data and unites its over 300 member firms through a full range of professional services. For more information about the NVCA, please visit www.nvca.org.