Title: Protecting American Lungs Act of 2019
Policy area: Taxation

Summary:
This bill imposes an excise tax on "taxable nicotine" which is any nicotine that has been extracted, concentrated, or synthesized and is treated as a tobacco product. The tax does not apply to nicotine used in a product that has been approved by the Food and Drug Administration for sale as a nicotine replacement therapy.

[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4742 Introduced in House (IH)]

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116th CONGRESS
  1st Session
                                H. R. 4742

To amend the Internal Revenue Code of 1986 to impose a tax on nicotine 
                          used in vaping, etc.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                            October 18, 2019

   Mr. Suozzi (for himself and Mr. King of New York) introduced the 
 following bill; which was referred to the Committee on Ways and Means

_______________________________________________________________________

                                 A BILL


 
To amend the Internal Revenue Code of 1986 to impose a tax on nicotine 
                          used in vaping, etc.

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

SECTION 1. IMPOSITION OF TAX ON NICOTINE FOR USE IN VAPING, ETC.

    (a) In General.--Section 5701 of the Internal Revenue Code of 1986 
is amended by redesignating subsection (h) as subsection (i) and by 
inserting after subsection (g) the following new subsection:
    ``(h) Nicotine.--On taxable nicotine, manufactured in or imported 
into the United States, there shall be imposed a tax equal to the 
dollar amount specified in section 5701(b)(1) (or, if greater, $50.33) 
per 1,810 milligrams of nicotine (and a proportionate tax at the like 
rate on any fractional part thereof).''.
    (b) Taxable Nicotine.--Section 5702 of such Code is amended by 
adding at the end the following new subsection:
    ``(q) Taxable Nicotine.--
            ``(1) In general.--Except as otherwise provided in this 
        subsection, the term `taxable nicotine' means any nicotine 
        which has been extracted, concentrated, or synthesized.
            ``(2) Exception for fda-approved nicotine replacement 
        therapies.--Such term shall not include any nicotine if the 
        manufacturer or importer thereof demonstrates to the 
        satisfaction of the Secretary that such nicotine will be used 
        in a product which has been approved by the Food and Drug 
        Administration for sale as a nicotine replacement therapy.
            ``(3) Coordination with taxation of other tobacco 
        products.--Cigars, cigarettes, smokeless tobacco, pipe tobacco, 
        and roll-your-own tobacco shall not be treated as containing 
        taxable nicotine solely because the nicotine naturally 
        occurring in the tobacco from which such product is 
        manufactured has been concentrated during the ordinary course 
        of manufacturing.''.
    (c) Taxable Nicotine Treated as a Tobacco Product.--Section 5702(c) 
of such Code is amended by striking ``and roll-your-own tobacco'' and 
inserting ``roll-your-own tobacco, and taxable nicotine''.
    (d) Manufacturer of Taxable Nicotine.--Section 5702 of such Code is 
amended by adding at the end the following new subsection:
    ``(r) Manufacturer of Taxable Nicotine.--
            ``(1) In general.--Any person who extracts, concentrates, 
        or synthesizes nicotine shall be treated as a manufacturer of 
        taxable nicotine (and as manufacturing such taxable nicotine).
            ``(2) Application of rules related to manufacturers of 
        tobacco products.--Any reference to a manufacturer of tobacco 
        products, or to manufacturing tobacco products, shall be 
        treated as including a reference to a manufacturer of taxable 
        nicotine, or to manufacturing taxable nicotine, 
        respectively.''.
    (e) Effective Date.--The amendments made by this subsection shall 
apply to articles manufactured or imported in calendar quarters 
beginning more than 90 days after the date of the enactment of this 
Act.
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