Originally Published MX January/February 2004
BUSINESS NEWS
MA Governor Vetoes User Fee Tax Credit |
| Mitt Romney |
 |
| Tom Sommer |
Months of careful negotiations were suddenly undone in November, when Massachusetts Governor Mitt Romney deleted from the state's economic stimulus package a proposed FDA user fee tax credit for medical device companies.
The line-item veto caught the state's medical device industry by surprise. The Massachusetts Medical Device Industry Council (MassMedic; Boston) had worked with state lawmakers in support of the unique provision throughout the previous fall months. The legislation called for a 50% tax credit on FDA user fee payments for medical device companies that develop or manufacture products in the state. It would also have permitted early-stage device companies without revenues to sell the tax credit to qualified corporations.
MassMedic president Tom Sommer said he had expected the tax credit to be signed into law. "We are obviously disappointed with Governor Romney's action and will work to support legislative efforts to override this veto," Sommer said.
The governor signed the economic stimulus package at the end of November. Through the use of line-item vetoes, however, he reduced spending in the plan by nearly half, from $100 million to about $50 million.
Many Democratic lawmakers had already left for the legislature's Thanksgiving break when the governor announced his cuts. They vowed to override the governor's vetoes when they return to work in January.
Sommer said the tax credit would help medical technology companies recover some of the costs of FDA's user fee program. "It will send a signal to device companies everywhere that Massachusetts is serious about promoting and nurturing its medical device industry," he said.
Copyright ©2004 MX
