of investment credit) is amended by striking ‘‘and’’ 
at the end of paragraph (1), by striking the period 
at the end of paragraph (2) and inserting ‘‘, and’’, 
and by adding at the end the following new para-
graph: 
‘‘(3) the vaccine manufacturing facilities invest-
ment credit.’’. 
(2) AMOUNT OF CREDIT.—Subpart E of part 
IV of subchapter A of chapter 1 of such Code (relat-
ing to rules for computing investment credit) is 
amended by inserting after section 48 the following 
new section: 
‘‘SEC. 48A. VACCINE MANUFACTURING FACILITIES CREDIT. 
‘‘(a) IN GENERAL.—For purposes of section 46, the 
vaccine manufacturing facilities investment credit for any 
taxable year is an amount equal to 20 percent of the quali-
fied investment for such taxable year. 
‘‘(b) QUALIFIED INVESTMENT.—
‘‘(1) IN GENERAL.—For purposes of subsection 
(a), the qualified investment for any taxable year is 
the basis of each vaccine manufacturing facilities 
property placed in service by the taxpayer during 
such taxable year. 
‘‘(2) VACCINE
MANUFACTURING
FACILITIES 
PROPERTY.—For purposes of this section, the term
‘vaccine manufacturing facilities property’ means 
real and tangible personal property—
‘‘(A)(i) the original use of which com-
mences with the taxpayer, or 
‘‘(ii) which is acquired through purchase 
(as defined by section 179(d)(2)), 
‘‘(B) which is depreciable under section 
167, 
‘‘(C) which is used for the manufacture, 
distribution, or research and development of 
vaccines, and 
‘‘(D) which is in compliance with any 
standards and regulations which are promul-
gated by the Food and Drug Administration, 
the Occupational Safety and Health Adminis-
tration, or the Environmental Protection Agen-
cy and which are applicable to such property. 
‘‘(c) CERTAIN
PROGRESS
EXPENDITURE
RULES 
MADE APPLICABLE.—Rules similar to rules of subsections 
(c)(4) and (d) of section 46 (as in effect on the day before 
the date of the enactment of the Revenue Reconciliation 
Act of 1990) shall apply for purposes of this subsection. 
‘‘(d) TERMINATION.—This subsection shall not apply 
to any property placed in service after December 31, 
2009.’’.
(b) TECHNICAL AMENDMENTS.—
(1) Clause (iii) of section 49(a)(1)(C) of such 
Code is amended to read as follows: 
‘‘(iii) the basis of any vaccine manu-
facturing facilities property.’’. 
(2) Subparagraph (E) of section 50(a)(2) of 
such Code is amended by inserting ‘‘or 48A(c)’’ be-
fore the period. 
(3) The table of sections for subpart E of part 
IV of subchapter A of chapter 1 of such Code is 
amended by inserting after the item relating to sec-
tion 48 the following:
‘‘Sec. 48A. Vaccine manufacturing facilities credit.’’.
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to property placed in service after 
December 31, 2004, under rules similar to the rules of 
section 48(m) of the Internal Revenue Code of 1986 (as 
in effect on the day before the date of enactment of the 
Revenue Reconciliation Act of 1990). 
TITLE 
III—ENSURING 
SUFFI-
CIENT FLU VACCINE SUPPLY 
SEC. 301. VACCINE SUPPLY. 
Subtitle 3 of title XXI of the Public Health Service 
Act, as added by section 101, is amended by adding at 
the end the following:
‘‘VACCINE SUPPLY 
‘‘SEC. 2142. (a) REQUESTS FOR MORE DOSES.—
‘‘(1) IN GENERAL.—Not later than March 15 of 
each year, the Director shall enter into contracts 
with manufacturers to produce such additional doses 
of the influenza vaccine as determined necessary by 
the Director. 
‘‘(2) CONTENT OF CONTRACT.—A contract for 
additional doses shall provide that the manufacturer 
will be compensated by the Director at an equitable 
rate negotiated by the Director and the manufac-
turer for any doses that—
‘‘(A) were not sold by the manufacturer 
through routine market mechanisms at the end 
of the influenza season for that year; and 
‘‘(B) were requested by the Director to be 
produced by such manufacturer. 
‘‘(3) 
WHEN
SUCH
VACCINE
PURCHASES 
SHOULD TAKE PLACE.—The Director may purchase 
from the manufacturer the doses for which it has 
contracted at any time after which it is determined 
by the Director, in consultation with the manufac-
turer, that the doses will likely not be absorbed by 
the private market.