MANUFACTURERS EXCISE TAX ON CERTAIN VACCINES.

SEC. 9201. MANUFACTURERS EXCISE TAX ON CERTAIN VACCINES. (a) In General.— Chapter 32 of the Internal Revenue Code of 1986 (relating to manufacturers excise taxes) is amended by inserting after subchapter B the following new subchapter: “Subchapter C— Certain Vaccines “Sec. 4131. Imposition of tax. “Sec. 4132. Definitions and special rules. 101 STAT. 1330–328 “SEC. 4131. IMPOSITION OF TAX. “(a) General Rule.— There is hereby imposed a tax on any taxable vaccine sold by the manufacturer, producer, or importer thereof. “(b) Amount of Tax.— “(1) In General.— The amount of the tax imposed by subsecretion (a) shall be determined in accordance with the following table: “If the taxable vaccine is: The tax per dose is: DPT vaccine ............................... $4.56 DT vaccine ............................... 0.06 MMR vaccine ............................... 4.44 Polio vaccine ............................... 0.29 “(2) Combinations of vaccines.— If any taxable vaccine is included in more than 1 category of vaccines in the table contained in paragraph (1), the amount of the tax imposed by subsection (a) on such vaccine shall be the sum of the amounts determined under such table for each category in which such vaccine is so included. “(c) Termination of Tax if Amounts Collected Exceed Projected Fund Liability.— “(1) In general.— If the Secretary estimates under paragraph (3) that the Vaccine Injury Compensation Trust Fund would not have a negative projected balance were the tax imposed by this section to terminate as of the close of any applicable date, no tax shall be imposed by this section after such date. “(2) Applicable date.— For purposes of paragraph (1), the term ‘applicable date’ means— “(A) the close of any calendar quarter ending on or after December 31, 1992, and “(B) the 1st date on which petitions may not be filed under section 2111 and 2111(a) of the Public Health Service reason of section 2134 of such Act and each date thereafter. “(3) Estimates by secretary.— “(A) In general.— The Secretary shall estimate the projected balance of the Vaccine Injury Compensation Trust Fund as of— “(i) the close of each calendar quarter ending on or after December 31, 1992, and “(ii) such other times as are appropriate in the case of applicable dates described in paragraph (2)(B). “(B) Determination of projected balance.— In determining the projected balance of the Fund as of any date, the Secretary shall assume that— “(i) the tax imposed by this section will not apply a after such date, and “(ii) there shall be paid from such Trust Fund all claims made or to be made against such Trust Fund— “(I) with respect to vaccines administered before October 1, 1992, in the case of an applicable date described in paragraph (2)(A), or “(II) with respect to petitions filed under section 2111 or section 2111(a) of the Public Health Service Act, in the case of an applicable date described in paragraph (2)(B). 101 STAT. 1330–329 “SEC. 4132. DEFINITIONS AND SPECIAL RULES. “(a) Definitions Relating to Taxable Vaccines.— For purposes of this subchapter— “(1) Taxable vaccine.— The term ‘taxable vaccine’ means any vaccine— “(A) which is listed in the table contained in section 4131(b)(1), and “(B) which is manufactured or produced in the United States or entered into the United States for consumption, use, or warehousing. “(2) DPT vaccine.— The term ‘DPT vaccine’ means any vaccine containing pertussis bacteria, extracted or partial cell bacteria, or specific pertussis antigens. “(3) DT vaccine.— The term ‘DT vaccine’ means any vaccine (other than a DPT vaccine) containing diphtheria toxoid or tetanus toxoid. “(4) MMR vaccine.— The term “MMR vaccine” means any vaccine against measles, mumps, or rubella. Not more than 1 tax shall be imposed by section 4131 on any MMR vaccine by reason of being a vaccine against more than 1 of measles, mumps, or rubella. “(5) Polio vaccine.— The term ‘polio vaccine’ means any vaccine containing polio virus. “(6) Vaccine.— The term ‘vaccine’ means any substance designed to be administered to a human being for the prevention of 1 or more diseases. “(7) United states.— The term ‘United States’ has the meaning given such term by section 4612(a)(4). “(8) Importer.— The term ‘importer’ means the person entering the vaccine for consumption, use, or warehousing. “(b) Credit or Refund Where Vaccine Returned to Manufacturer, Etc., or Destroyed.— “(1) In general.— Under regulations prescribed by the Secretary, whenever any vaccine on which tax was imposed by section 4131 is— “(A) returned (other than for resale) to the person who paid such tax, or “(B) destroyed, the Secretary shall abate such tax or allow a credit, or pay a refund (without interest), to such person equal to the tax paid under section 4131 with respect to such vaccine. “(2) Claim must be filed within 6 months.— Paragraph (1) shall apply to any returned or destroyed vaccine only with respect to claims filed within 6 months after the date the vaccine is returned or destroyed. “(3) Condition of allowance of credit or refund.— No credit or refund shall be allowed or made under paragraph (1) with respect to any vaccine unless the person who paid the tax establishes that he— “(A) has repaid or agreed to repay the amount of the tax to the ultimate purchaser of the vaccine, or “(B) has obtained the written consent of such purchaser to the allowance of the credit or the making of the refund. “(4) Tax imposed only once.— No tax shall be imposed by section 4131 on the sale of any vaccine if tax was imposed by101 STAT. 1330–330 section 4131 on any prior sale of such vaccine and such tax is not abated, credited, or refunded. “(c) Other Special Rules.— “(1) Fractional part of a dose.— In the case of a fraction of a dose, the tax imposed by section 4131 shall be the same fraction of the amount of such tax imposed by a whole dose. “(2) Disposition of revenues from puerto rico and the virgin islands.— The provisions of subsections (a)(3) and (b)(3) of section 7652 shall not apply to any tax imposed by section 4131.” (b) Certain Provisions Relating to Tax-Free Sales, Etc. Not To Apply.— (1) Subsection (a) of section 4221 of such Code (relating to certain tax-free sales) is amended by adding at the end thereof the following new sentence: “In the case of the tax imposed by section 4131, paragraphs (3), (4), and (5) shall not apply and paragraph (2) shall apply only if the use of the exported vaccine meets such requirements as the Secretary may by regulations prescribe.” (2) Paragraph (2) of section 6416(b) of such Code (relating to specified uses or resales) is amended by adding at the end thereof the following new sentence: “In the case of the tax imposed by section 4131, subparagraphs (B), (C), and (D) shall not apply and subparagraph (A) shall apply only if the use of the exported vaccine meets such requirements as the Secretary may by regulations prescribe.” (c) Clerical Amendment.— The table of subchapters for chapter 32 of such Code is amended by inserting after the item relating to subchapter B the following new item: “Subchapter C. Certain vaccines.” (d) Effective Date.— The amendments made by this section shall take effect on January 1, 1988.