Title: U.S. MADE Act of 2020
Policy area: Taxation

Summary:
United States Manufacturing Availability of Domestic Equipment Act or the U.S. MADE Act of 2020
This bill prohibits the use of funds in the Strategic National Stockpile for the procurement of certain items unless they are grown, reprocessed, reused, or produced in the United States. Such items include personal protective equipment, including protective masks and gowns, sanitizing and disinfecting wipes, privacy curtains and coverings, or other textile medical supplies and equipment.
The bill also allows a new 30% investment tax credit for qualifying medical personal protective equipment manufacturing projects. The term qualifying medical personal protective equipment manufacturing project is a project which reequips, expands, establishes or continues existing production of drugs, vaccines, and medical equipment for the emergency health security of the United States

[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[S. 4264 Introduced in Senate (IS)]

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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.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``United States Manufacturing 
Availability of Domestic Equipment Act'' or the ``U.S. MADE Act of 
2020''.

SEC. 2. DOMESTIC PURCHASING REQUIREMENT FOR PERSONAL PROTECTIVE 
              EQUIPMENT ACQUISITIONS FOR THE STRATEGIC NATIONAL 
              STOCKPILE.

    Section 319F-2(a) of the Public Health Service Act (42 U.S.C. 247d-
6b(a)) is amended by adding at the end the following:
            ``(6) Domestic purchasing requirement for personal 
        protective equipment.--
                    ``(A) Requirement.--Except as provided in 
                subparagraphs (C) and (D), funds appropriated or 
                otherwise available to the Secretary for the Strategic 
                National Stockpile may not be used for the procurement 
                of an item described in subparagraph (B) unless the 
                item was grown, reprocessed, reused, or produced in the 
                United States.
                    ``(B) Covered items.--An item described in this 
                subparagraph is an article or item of--
                            ``(i) personal protective equipment 
                        (including surgical masks, respirator masks, 
                        face shields, surgical and isolation gowns, and 
                        head and foot coverings) or clothing (and the 
                        materials and components thereof), other than 
                        sensors, electronics, or other items added to, 
                        and not normally associated with, such personal 
                        protective equipment or clothing;
                            ``(ii) sanitizing and disinfecting wipes, 
                        privacy curtains, beds and bedding, testing 
                        swabs, gauze and bandages, tents, tarpaulins, 
                        covers, or bags; or
                            ``(iii) any other textile medical supplies 
                        and equipment described in paragraph (1).
                    ``(C) Availability exception.--Subsection (a) shall 
                not apply to an item described in subparagraph (B)--
                            ``(i) that is, or that includes, a material 
                        listed in section 25.104 of the Federal 
                        Acquisition Regulation as one for which a non-
                        availability determination has been made; or
                            ``(ii) as to which the Secretary determines 
                        that a sufficient quantity of a satisfactory 
                        quality of such item that is grown, 
                        reprocessed, reused, or produced in the United 
                        States cannot be procured as, and when, needed 
                        at United States market prices.
                    ``(D) Exception for small purchases.--Subparagraph 
                (A) shall not apply to purchases for amounts that do 
                not exceed $150,000. A proposed purchase or contract 
                for an amount in excess of $150,000 may not be divided 
                into several purchases or contracts for lesser amounts 
                in order to qualify for the exception under this 
                subparagraph.
                    ``(E) Geographic coverage.--In this section, the 
                term `United States' means the several states, the 
                District of Columbia, the United States territories and 
                possessions, and the Freely Associated States.
                    ``(F) Notification required within 7 days after 
                contract award if certain exceptions applied.--In the 
                case of any contract for the procurement of an item 
                described in subparagraph (B), if the Secretary applies 
                the exception described in subparagraph (C) with 
                respect to that contract, the Secretary shall, not 
                later than 7 days after the awarding of the contract, 
                post a notification that the exception has been applied 
                on the internet website maintained by the General 
                Services Administration known as FedBizOps.gov (or any 
                successor site).
                    ``(G) Training during fiscal year 2021.--
                            ``(i) In general.--The Secretary shall 
                        ensure that each member of the acquisition 
                        workforce in the Department of Health and Human 
                        Services who participates personally and 
                        substantially in acquisitions on a regular 
                        basis receives training during fiscal year 2021 
                        on the requirements of this paragraph and the 
                        regulations implementing this paragraph.
                            ``(ii) Inclusion of information in new 
                        training programs.--The Secretary shall ensure 
                        that any training program for the acquisition 
                        workforce developed or implemented after fiscal 
                        year 2021, includes comprehensive information 
                        on the requirements described in subparagraph 
                        (A).
                    ``(H) Application to other agencies.--If 
                responsibility for maintaining the Strategic National 
                Stockpile is transferred from the Department of Health 
                and Human Services to any other Federal department or 
                agency, the provisions of this paragraph shall apply to 
                the head of such department or agency.
                    ``(I) Effective date.--This paragraph shall apply 
                with respect to contracts entered into by the 
                Department of Health and Human Services beginning 60 
                days after the date of enactment of this paragraph.''.

SEC. 3. INVESTMENT CREDIT FOR QUALIFYING MEDICAL PERSONAL PROTECTIVE 
              EQUIPMENT MANUFACTURING PROJECTS.

    (a) In General.--Subpart E of part IV of subchapter A of chapter 1 
of the Internal Revenue Code of 1986 is amended by inserting after 
section 48C the following new section:

``SEC. 48D. QUALIFYING MEDICAL PERSONAL PROTECTIVE EQUIPMENT 
              MANUFACTURING PROJECT CREDIT.

    ``(a) In General.--For purposes of section 46, the qualifying 
medical personal protective equipment manufacturing project credit for 
any taxable year is an amount equal to 30 percent of the qualified 
investment for such taxable year with respect to any qualifying medical 
personal protective equipment manufacturing project of the taxpayer.
    ``(b) Qualified Investment.--
            ``(1) In general.--For purposes of subsection (a), the 
        qualified investment for any taxable year is the basis of 
        eligible property placed in service or continued in service by 
        the taxpayer during such taxable year which is part of a 
        qualifying medical personal protective equipment manufacturing 
        project.
            ``(2) Certain qualified progress expenditures rules made 
        applicable.--Rules similar to the rules of subsections (c)(4) 
        and (d) of section 46 (as in effect on the day before the 
        enactment of the Revenue Reconciliation Act of 1990) shall 
        apply for purposes of this section.
            ``(3) Limitation.--The amount which is treated as the 
        qualified investment for all taxable years with respect to any 
        qualifying medical personal protective equipment manufacturing 
        project shall not exceed the amount designated by the Secretary 
        as eligible for the credit under this section.
    ``(c) Definitions.--
            ``(1) Qualifying medical personal protective equipment 
        manufacturing project.--
                    ``(A) In general.--The term `qualifying medical 
                personal protective equipment manufacturing project' 
                means a project--
                            ``(i) which re-equips, expands, 
                        establishes, or continues existing medical 
                        personal protective equipment production of--
                                    ``(I) any item described in 
                                paragraph (6)(B) of section 319F-2(a) 
                                of the Public Health Service Act (42 
                                U.S.C. 247d-6b(a)), or
                                    ``(II) any textile products for 
                                medical applications which are not 
                                described in subclause (I), as 
                                identified by the Secretary, in 
                                consultation with the Secretary of 
                                Health and Human Services, and
                            ``(ii) any portion of the qualified 
                        investment of which is certified by the 
                        Secretary under subsection (d) as eligible for 
                        a credit under this section.
                    ``(B) Exception.--Subclause (I) of subparagraph 
                (A)(i) shall not include sensors, electronics, or other 
                items added to, and not normally associated with, 
                equipment or clothing described in such subclause.
            ``(2) Eligible property.--The term `eligible property' 
        means any property--
                    ``(A) which is necessary for the production of 
                property described in paragraph (1)(A)(i),
                    ``(B) which is--
                            ``(i) tangible personal property, or
                            ``(ii) other tangible property (not 
                        including a building or its structural 
                        components), but only if such property is used 
                        as an integral part of the manufacturing 
                        facility described in such paragraph, and
                    ``(C) with respect to which depreciation (or 
                amortization in lieu of depreciation) is allowable.
    ``(d) Qualifying Medical Personal Protective Equipment 
Manufacturing Project Program.--
            ``(1) Establishment.--
                    ``(A) In general.--Not later than 90 days after the 
                date of enactment of this section, the Secretary, in 
                consultation with the Secretary of Health and Human 
                Services, shall establish a qualifying medical personal 
                protective equipment manufacturing project program to 
                consider and award certifications for qualified 
                investments eligible for credits under this section to 
                qualifying medical personal protective equipment 
                manufacturing project sponsors.
                    ``(B) Limitation.--The total amount of credits that 
                may be allocated under the program shall not exceed 
                $7,500,000,000.
            ``(2) Certification.--
                    ``(A) Application period.--Each applicant for 
                certification under this paragraph shall submit an 
                application (containing such information as the 
                Secretary may require) during the 1-year period 
                beginning on the date the Secretary establishes the 
                program under paragraph (1).
                    ``(B) Time to meet criteria for certification.--
                Each applicant for certification shall have 1 year from 
                the date of acceptance by the Secretary of the 
                application during which to provide to the Secretary 
                evidence that the requirements of the certification 
                have been met.
                    ``(C) Period of issuance.--An applicant which 
                receives a certification shall have 2 years from the 
                date of issuance of the certification in order to place 
                the project in service and if such project is not 
                placed in service by that time period, then the 
                certification shall no longer be valid.
            ``(3) Selection criteria.--In determining which qualifying 
        medical personal protective equipment manufacturing projects to 
        certify under this section, the Secretary shall take into 
        consideration which projects--
                    ``(A) will provide the greatest domestic job 
                creation and retention (both direct and indirect) 
                during the credit period,
                    ``(B) will provide the largest amount of medical 
                personal protective equipment for which there is the 
                greatest need for purposes of the Strategic National 
                Stockpile (as described in section 319F-2(a) of the 
                Public Health Service Act (42 U.S.C. 247d-6b(a))),
                    ``(C) have the greatest potential for helping to 
                achieve medical manufacturing independence for the 
                United States, and
                    ``(D) have the greatest potential to meet sudden 
                surges in demand for personal protective equipment.
            ``(4) Review and redistribution.--
                    ``(A) Review.--Not later than 3 years after the 
                date of enactment of this section, the Secretary shall 
                review the credits allocated under this section as of 
                such date.
                    ``(B) Redistribution.--The Secretary may reallocate 
                credits awarded under this section if the Secretary 
                determines that--
                            ``(i) there is an insufficient quantity of 
                        qualifying applications for certification 
                        pending at the time of the review, or
                            ``(ii) any certification made pursuant to 
                        paragraph (2) has been revoked pursuant to 
                        paragraph (2)(B) because the project subject to 
                        the certification has been delayed as a result 
                        of third-party opposition or litigation to the 
                        proposed project.
                    ``(C) Reallocation.--If the Secretary determines 
                that credits under this section are available for 
                reallocation pursuant to the requirements set forth in 
                paragraph (2), the Secretary is authorized to conduct 
                an additional program for applications for 
                certification.
            ``(5) Disclosure of allocations.--The Secretary shall, upon 
        making a certification under this subsection, publicly disclose 
        the identity of the applicant and the amount of the credit with 
        respect to such applicant.''.
    (b) Conforming Amendments.--
            (1) Section 46 of the Internal Revenue Code of 1986 is 
        amended--
                    (A) by striking ``and'' at the end of paragraph 
                (5);
                    (B) by striking the period at the end of paragraph 
                (6) and inserting ``, and''; and
                    (C) by adding at the end the following:
            ``(7) the qualifying medical personal protective equipment 
        manufacturing project credit.''.
            (2) Section 49(a)(1)(C) of such Code is amended--
                    (A) by striking ``and'' at the end of clause (iv);
                    (B) by striking the period at the end of clause (v) 
                and inserting ``, and''; and
                    (C) by adding at the end the following:
                            ``(vi) the basis of any property which is 
                        part of a qualifying medical personal 
                        protective equipment manufacturing project 
                        under section 48D.''.
            (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 section 48C the following new item:

``Sec. 48D. Qualifying medical personal protective equipment 
                            manufacturing project credit.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to property the construction of which begins after December 31, 
2019.
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