II 

116TH CONGRESS 

2D SESSION S. 4264 

To require personal protective equipment to be acquired from domestic 

producers for the Strategic National Stockpile. 

IN THE SENATE OF THE UNITED STATES 

JULY 22, 2020 

Mr. GRAHAM (for himself, Mrs. CAPITO, and Mr. ROUNDS) introduced the 

following bill; which was read twice and referred to the Committee on Finance 

A BILL 

To require personal protective equipment to be acquired from 

domestic producers for the Strategic National Stockpile. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘United States Manu5 facturing Availability of Domestic Equipment Act’’ or the 

6 ‘‘U.S. MADE Act of 2020’’. 


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1 SEC. 2. DOMESTIC PURCHASING REQUIREMENT FOR PER2 SONAL PROTECTIVE EQUIPMENT ACQUISI3 TIONS FOR THE STRATEGIC NATIONAL 

4 STOCKPILE. 

5 Section 319F–2(a) of the Public Health Service Act 

6 (42 U.S.C. 247d–6b(a)) is amended by adding at the end 

7 the following: 

8 ‘‘(6) DOMESTIC PURCHASING REQUIREMENT

9 FOR PERSONAL PROTECTIVE EQUIPMENT.— 

10 ‘‘(A) REQUIREMENT.—Except as provided 

11 in subparagraphs (C) and (D), funds appro12 priated or otherwise available to the Secretary 

13 for the Strategic National Stockpile may not be 

14 used for the procurement of an item described 

15 in subparagraph (B) unless the item was 

16 grown, reprocessed, reused, or produced in the 

17 United States. 

18 ‘‘(B) COVERED ITEMS.—An item described 

19 in this subparagraph is an article or item of— 

20 ‘‘(i) personal protective equipment (in21 cluding surgical masks, respirator masks, 

22 face shields, surgical and isolation gowns, 

23 and head and foot coverings) or clothing 

24 (and the materials and components there25 of), other than sensors, electronics, or 

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1 sociated with, such personal protective 

2 equipment or clothing; 

3 ‘‘(ii) sanitizing and disinfecting wipes, 

4 privacy curtains, beds and bedding, testing 

5 swabs, gauze and bandages, tents, tarpau6 lins, covers, or bags; or 

7 ‘‘(iii) any other textile medical sup8 plies and equipment described in para9 graph (1). 

10 ‘‘(C) AVAILABILITY EXCEPTION.—Sub11 section (a) shall not apply to an item described 

12 in subparagraph (B)— 

13 ‘‘(i) that is, or that includes, a mate14 rial listed in section 25.104 of the Federal 

15 Acquisition Regulation as one for which a 

16 non-availability determination has been 

17 made; or 

18 ‘‘(ii) as to which the Secretary deter19 mines that a sufficient quantity of a satis20 factory quality of such item that is grown, 

21 reprocessed, reused, or produced in the 

22 United States cannot be procured as, and 

23 when, needed at United States market 

24 prices. 


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1 ‘‘(D) EXCEPTION FOR SMALL PUR2 CHASES.—Subparagraph (A) shall not apply to 

3 purchases for amounts that do not exceed 

4 $150,000. A proposed purchase or contract for 

5 an amount in excess of $150,000 may not be 

6 divided into several purchases or contracts for 

7 lesser amounts in order to qualify for the excep8 tion under this subparagraph. 

9 ‘‘(E) GEOGRAPHIC COVERAGE.—In this 

10 section, the term ‘United States’ means the sev11 eral states, the District of Columbia, the United 

12 States territories and possessions, and the 

13 Freely Associated States. 

14 ‘‘(F) NOTIFICATION REQUIRED WITHIN 7

15 DAYS AFTER CONTRACT AWARD IF CERTAIN EX16 CEPTIONS APPLIED.—In the case of any con17 tract for the procurement of an item described 

18 in subparagraph (B), if the Secretary applies 

19 the exception described in subparagraph (C) 

20 with respect to that contract, the Secretary 

21 shall, not later than 7 days after the awarding 

22 of the contract, post a notification that the ex23 ception has been applied on the internet website 

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1 tion known as FedBizOps.gov (or any successor 

2 site). 

3 ‘‘(G) TRAINING DURING FISCAL YEAR

4 2021.— 

5 ‘‘(i) IN GENERAL.—The Secretary 

6 shall ensure that each member of the ac7 quisition workforce in the Department of 

8 Health and Human Services who partici9 pates personally and substantially in acqui10 sitions on a regular basis receives training 

11 during fiscal year 2021 on the require12 ments of this paragraph and the regula13 tions implementing this paragraph. 

14 ‘‘(ii) INCLUSION OF INFORMATION IN

15 NEW TRAINING PROGRAMS.—The Secretary 

16 shall ensure that any training program for 

17 the acquisition workforce developed or im18 plemented after fiscal year 2021, includes 

19 comprehensive information on the require20 ments described in subparagraph (A). 

21 ‘‘(H) APPLICATION TO OTHER AGEN22 CIES.—If responsibility for maintaining the 

23 Strategic National Stockpile is transferred from 

24 the Department of Health and Human Services 

25 to any other Federal department or agency, the 


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1 provisions of this paragraph shall apply to the 

2 head of such department or agency. 

3 ‘‘(I) EFFECTIVE DATE.—This paragraph 

4 shall apply with respect to contracts entered 

5 into by the Department of Health and Human 

6 Services beginning 60 days after the date of en7 actment of this paragraph.’’. 

8 SEC. 3. INVESTMENT CREDIT FOR QUALIFYING MEDICAL 

9 PERSONAL PROTECTIVE EQUIPMENT MANU10 FACTURING PROJECTS. 

11 (a) IN GENERAL.—Subpart E of part IV of sub12 chapter A of chapter 1 of the Internal Revenue Code of 

13 1986 is amended by inserting after section 48C the fol14 lowing new section: 

15 ‘‘SEC. 48D. QUALIFYING MEDICAL PERSONAL PROTECTIVE 

16 EQUIPMENT MANUFACTURING PROJECT 

17 CREDIT. 

18 ‘‘(a) IN GENERAL.—For purposes of section 46, the 

19 qualifying medical personal protective equipment manu20 facturing project credit for any taxable year is an amount 

21 equal to 30 percent of the qualified investment for such 

22 taxable year with respect to any qualifying medical per23 sonal protective equipment manufacturing project of the 

24 taxpayer. 

25 ‘‘(b) QUALIFIED INVESTMENT.— 


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1 ‘‘(1) IN GENERAL.—For purposes of subsection 

2 (a), the qualified investment for any taxable year is 

3 the basis of eligible property placed in service or 

4 continued in service by the taxpayer during such 

5 taxable year which is part of a qualifying medical 

6 personal protective equipment manufacturing proj7 ect. 

8 ‘‘(2) CERTAIN QUALIFIED PROGRESS EXPENDI9 TURES RULES MADE APPLICABLE.—Rules similar to 

10 the rules of subsections (c)(4) and (d) of section 46 

11 (as in effect on the day before the enactment of the 

12 Revenue Reconciliation Act of 1990) shall apply for 

13 purposes of this section. 

14 ‘‘(3) LIMITATION.—The amount which is treat15 ed as the qualified investment for all taxable years 

16 with respect to any qualifying medical personal pro17 tective equipment manufacturing project shall not 

18 exceed the amount designated by the Secretary as el19 igible for the credit under this section. 

20 ‘‘(c) DEFINITIONS.— 

21 ‘‘(1) QUALIFYING MEDICAL PERSONAL PROTEC22 TIVE EQUIPMENT MANUFACTURING PROJECT.— 

23 ‘‘(A) IN GENERAL.—The term ‘qualifying 

24 medical personal protective equipment manufac25 turing project’ means a project— 


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1 ‘‘(i) which re-equips, expands, estab2 lishes, or continues existing medical per3 sonal protective equipment production of— 

4 ‘‘(I) any item described in para5 graph (6)(B) of section 319F–2(a) of 

6 the Public Health Service Act (42 

7 U.S.C. 247d–6b(a)), or 

8 ‘‘(II) any textile products for 

9 medical applications which are not de10 scribed in subclause (I), as identified 

11 by the Secretary, in consultation with 

12 the Secretary of Health and Human 

13 Services, and 

14 ‘‘(ii) any portion of the qualified in15 vestment of which is certified by the Sec16 retary under subsection (d) as eligible for 

17 a credit under this section. 

18 ‘‘(B) EXCEPTION.—Subclause (I) of sub19 paragraph (A)(i) shall not include sensors, elec20 tronics, or other items added to, and not nor21 mally associated with, equipment or clothing de22 scribed in such subclause. 

23 ‘‘(2) ELIGIBLE PROPERTY.—The term ‘eligible 

24 property’ means any property— 


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1 ‘‘(A) which is necessary for the production 

2 of property described in paragraph (1)(A)(i), 

3 ‘‘(B) which is— 

4 ‘‘(i) tangible personal property, or 

5 ‘‘(ii) other tangible property (not in6 cluding a building or its structural compo7 nents), but only if such property is used as 

8 an integral part of the manufacturing fa9 cility described in such paragraph, and 

10 ‘‘(C) with respect to which depreciation (or 

11 amortization in lieu of depreciation) is allow12 able. 

13 ‘‘(d) QUALIFYING MEDICAL PERSONAL PROTECTIVE

14 EQUIPMENT MANUFACTURING PROJECT PROGRAM.— 

15 ‘‘(1) ESTABLISHMENT.— 

16 ‘‘(A) IN GENERAL.—Not later than 90 

17 days after the date of enactment of this section, 

18 the Secretary, in consultation with the Sec19 retary of Health and Human Services, shall es20 tablish a qualifying medical personal protective 

21 equipment manufacturing project program to 

22 consider and award certifications for qualified 

23 investments eligible for credits under this sec24 tion to qualifying medical personal protective 

25 equipment manufacturing project sponsors. 


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1 ‘‘(B) LIMITATION.—The total amount of 

2 credits that may be allocated under the pro3 gram shall not exceed $7,500,000,000. 

4 ‘‘(2) CERTIFICATION.— 

5 ‘‘(A) APPLICATION PERIOD.—Each appli6 cant for certification under this paragraph shall 

7 submit an application (containing such informa8 tion as the Secretary may require) during the 

9 1-year period beginning on the date the Sec10 retary establishes the program under paragraph 

11 (1). 

12 ‘‘(B) TIME TO MEET CRITERIA FOR CER13 TIFICATION.—Each applicant for certification 

14 shall have 1 year from the date of acceptance 

15 by the Secretary of the application during 

16 which to provide to the Secretary evidence that 

17 the requirements of the certification have been 

18 met. 

19 ‘‘(C) PERIOD OF ISSUANCE.—An applicant 

20 which receives a certification shall have 2 years 

21 from the date of issuance of the certification in 

22 order to place the project in service and if such 

23 project is not placed in service by that time pe24 riod, then the certification shall no longer be 

25 valid. 


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1 ‘‘(3) SELECTION CRITERIA.—In determining 

2 which qualifying medical personal protective equip3 ment manufacturing projects to certify under this 

4 section, the Secretary shall take into consideration 

5 which projects— 

6 ‘‘(A) will provide the greatest domestic job 

7 creation and retention (both direct and indirect) 

8 during the credit period, 

9 ‘‘(B) will provide the largest amount of 

10 medical personal protective equipment for which 

11 there is the greatest need for purposes of the 

12 Strategic National Stockpile (as described in 

13 section 319F–2(a) of the Public Health Service 

14 Act (42 U.S.C. 247d–6b(a))), 

15 ‘‘(C) have the greatest potential for help16 ing to achieve medical manufacturing independ17 ence for the United States, and 

18 ‘‘(D) have the greatest potential to meet 

19 sudden surges in demand for personal protec20 tive equipment. 

21 ‘‘(4) REVIEW AND REDISTRIBUTION.— 

22 ‘‘(A) REVIEW.—Not later than 3 years 

23 after the date of enactment of this section, the 

24 Secretary shall review the credits allocated 

25 under this section as of such date. 


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1 ‘‘(B) REDISTRIBUTION.—The Secretary 

2 may reallocate credits awarded under this sec3 tion if the Secretary determines that— 

4 ‘‘(i) there is an insufficient quantity 

5 of qualifying applications for certification 

6 pending at the time of the review, or 

7 ‘‘(ii) any certification made pursuant 

8 to paragraph (2) has been revoked pursu9 ant to paragraph (2)(B) because the 

10 project subject to the certification has been 

11 delayed as a result of third-party opposi12 tion or litigation to the proposed project. 

13 ‘‘(C) REALLOCATION.—If the Secretary de14 termines that credits under this section are 

15 available for reallocation pursuant to the re16 quirements set forth in paragraph (2), the Sec17 retary is authorized to conduct an additional 

18 program for applications for certification. 

19 ‘‘(5) DISCLOSURE OF ALLOCATIONS.—The Sec20 retary shall, upon making a certification under this 

21 subsection, publicly disclose the identity of the appli22 cant and the amount of the credit with respect to 

23 such applicant.’’. 

24 (b) CONFORMING AMENDMENTS.— 


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1 (1) Section 46 of the Internal Revenue Code of 

2 1986 is amended— 

3 (A) by striking ‘‘and’’ at the end of para4 graph (5); 

5 (B) by striking the period at the end of 

6 paragraph (6) and inserting ‘‘, and’’; and 

7 (C) by adding at the end the following: 

8 ‘‘(7) the qualifying medical personal protective 

9 equipment manufacturing project credit.’’. 

10 (2) Section 49(a)(1)(C) of such Code is amend11 ed— 

12 (A) by striking ‘‘and’’ at the end of clause 

13 (iv); 

14 (B) by striking the period at the end of 

15 clause (v) and inserting ‘‘, and’’; and 

16 (C) by adding at the end the following: 

17 ‘‘(vi) the basis of any property which 

18 is part of a qualifying medical personal 

19 protective equipment manufacturing proj20 ect under section 48D.’’. 

21 (3) The table of sections for subpart E of part 

22 IV of subchapter A of chapter 1 of such Code is 

23 amended by inserting after the item relating to sec24 tion 48C the following new item: 

‘‘Sec. 48D. Qualifying medical personal protective equipment manufacturing 

project credit.’’. 


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1 (c) EFFECTIVE DATE.—The amendments made by 

2 this section shall apply to property the construction of 

3 which begins after December 31, 2019. 

Æ 


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