Protecting American Lungs Act of 2019

IB Union Calendar No. 322 116TH CONGRESS 2D SESSION H. R. 4742 [Report No. 116–400] 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 FEBRUARY 21, 2020 Reported with an amendment; committed to the Committee of the Whole House on the State of the Union and ordered to be printed [Strike out all after the enacting clause and insert the part printed in italic] [For text of introduced bill, see copy of bill as introduced on October 18, 2019] VerDate Sep 11 2014 21:19 Feb 21, 2020 Jkt 099200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6652 E:\BILLS\H4742.RH H4742 pamtmann on DSKBC07HB2PROD with BILLS 2 •HR 4742 RH A BILL To amend the Internal Revenue Code of 1986 to impose a tax on nicotine used in vaping, etc. VerDate Sep 11 2014 21:19 Feb 21, 2020 Jkt 099200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6652 E:\BILLS\H4742.RH H4742 pamtmann on DSKBC07HB2PROD with BILLS 3 •HR 4742 RH Be it enacted by the Senate and House of Representa- 1 tives of the United States of America in Congress assembled, 2 SECTION 1. SHORT TITLE. 3 This Act may be cited as the ‘‘Protecting American 4 Lungs Act of 2019’’. 5 SEC. 2. IMPOSITION OF TAX ON NICOTINE FOR USE IN 6 VAPING, ETC. 7 (a) IN GENERAL.—Section 5701 of the Internal Rev- 8 enue Code of 1986 is amended by redesignating subsection 9 (h) as subsection (i) and by inserting after subsection (g) 10 the following new subsection: 11 ‘‘(h) NICOTINE.—On taxable nicotine, manufactured 12 in or imported into the United States, there shall be im- 13 posed a tax equal to the dollar amount specified in section 14 5701(b)(1) (or, if greater, $50.33) per 1,810 milligrams of 15 nicotine (and a proportionate tax at the like rate on any 16 fractional part thereof).’’. 17 (b) TAXABLE NICOTINE.—Section 5702 of such Code 18 is amended by adding at the end the following new sub- 19 section: 20 ‘‘(q) TAXABLE NICOTINE.— 21 ‘‘(1) IN GENERAL.—Except as otherwise provided 22 in this subsection, the term ‘taxable nicotine’ means 23 any nicotine which has been extracted, concentrated, 24 or synthesized. 25 VerDate Sep 11 2014 21:19 Feb 21, 2020 Jkt 099200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6203 E:\BILLS\H4742.RH H4742 pamtmann on DSKBC07HB2PROD with BILLS 4 •HR 4742 RH ‘‘(2) EXCEPTION FOR FDA-APPROVED NICOTINE 1 REPLACEMENT THERAPIES.—Such term shall not in- 2 clude any nicotine if the manufacturer or importer 3 thereof demonstrates to the satisfaction of the Sec- 4 retary that such nicotine will be used in a product 5 which has been approved by the Food and Drug Ad- 6 ministration for sale as a nicotine replacement ther- 7 apy. 8 ‘‘(3) COORDINATION WITH TAXATION OF OTHER 9 TOBACCO PRODUCTS.—Cigars, cigarettes, smokeless to- 10 bacco, pipe tobacco, and roll-your-own tobacco shall 11 not be treated as containing taxable nicotine solely 12 because the nicotine naturally occurring in the to- 13 bacco from which such product is manufactured has 14 been concentrated during the ordinary course of man- 15 ufacturing.’’. 16 (c) TAXABLE NICOTINE TREATED AS A TOBACCO 17 PRODUCT.—Section 5702(c) of such Code is amended by 18 striking ‘‘and roll-your-own tobacco’’ and inserting ‘‘roll- 19 your-own tobacco, and taxable nicotine’’. 20 (d) MANUFACTURER OF TAXABLE NICOTINE.—Section 21 5702 of such Code is amended by adding at the end the 22 following new subsection: 23 ‘‘(r) MANUFACTURER OF TAXABLE NICOTINE.— 24 VerDate Sep 11 2014 21:19 Feb 21, 2020 Jkt 099200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6203 E:\BILLS\H4742.RH H4742 pamtmann on DSKBC07HB2PROD with BILLS 5 •HR 4742 RH ‘‘(1) IN GENERAL.—Any person who extracts, 1 concentrates, or synthesizes nicotine shall be treated 2 as a manufacturer of taxable nicotine (and as manu- 3 facturing such taxable nicotine). 4 ‘‘(2) APPLICATION OF RULES RELATED TO MANU- 5 FACTURERS OF TOBACCO PRODUCTS.—Any reference 6 to a manufacturer of tobacco products, or to manufac- 7 turing tobacco products, shall be treated as including 8 a reference to a manufacturer of taxable nicotine, or 9 to manufacturing taxable nicotine, respectively.’’. 10 (e) EFFECTIVE DATE.—The amendments made by this 11 section shall apply to articles manufactured or imported 12 in calendar quarters beginning more than 90 days after the 13 date of the enactment of this Act. 14 VerDate Sep 11 2014 21:19 Feb 21, 2020 Jkt 099200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6203 E:\BILLS\H4742.RH H4742 pamtmann on DSKBC07HB2PROD with BILLS Union Calendar No. 322 116TH CONGRESS 2D SESSION H. R. 4742 [Report No. 116–400] A BILL To amend the Internal Revenue Code of 1986 to impose a tax on nicotine used in vaping, etc. FEBRUARY 21, 2020 Reported with an amendment; committed to the Com- mittee of the Whole House on the State of the Union and ordered to be printed VerDate Sep 11 2014 21:19 Feb 21, 2020 Jkt 099200 PO 00000 Frm 00006 Fmt 6651 Sfmt 6651 E:\BILLS\H4742.RH H4742 pamtmann on DSKBC07HB2PROD with BILLS