US MADE Act of 2020

I 116TH CONGRESS 2D SESSION H. R. 8051 To require personal protective equipment to be acquired from domestic producers for the Strategic National Stockpile. IN THE HOUSE OF REPRESENTATIVES AUGUST 14, 2020 Mr. MCKINLEY (for himself and Mr. TRONE) introduced the following bill; which was referred to the Committee on Ways and Means, and in addi- tion to the Committee on Energy and Commerce, for a period to be sub- sequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned 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 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 ‘‘United States Manu- 4 facturing Availability of Domestic Equipment Act’’ or the 5 ‘‘US MADE Act of 2020’’. 6 VerDate Sep 11 2014 00:27 Sep 02, 2020 Jkt 099200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\H8051.IH H8051 pbinns on DSKJLVW7X2PROD with BILLS 2 •HR 8051 IH SEC. 2. DOMESTIC PURCHASING REQUIREMENT FOR PER- 1 SONAL PROTECTIVE EQUIPMENT ACQUISI- 2 TIONS FOR THE STRATEGIC NATIONAL 3 STOCKPILE. 4 Section 319F–2(a) of the Public Health Service Act 5 (42 U.S.C. 247d–6b(a)) is amended by adding at the end 6 the following: 7 ‘‘(6) DOMESTIC PURCHASING REQUIREMENT 8 FOR PERSONAL PROTECTIVE EQUIPMENT.— 9 ‘‘(A) REQUIREMENT.—Except as provided 10 in subparagraphs (C) and (D), funds appro- 11 priated or otherwise available to the Secretary 12 for the Strategic National Stockpile may not be 13 used for the procurement of an item described 14 in subparagraph (B) unless the item was 15 grown, reprocessed, reused, or produced in the 16 United States. 17 ‘‘(B) COVERED ITEMS.—An item described 18 in this subparagraph is an article or item of— 19 ‘‘(i) personal protective equipment (in- 20 cluding surgical masks, respirator masks, 21 face shields, surgical and isolation gowns, 22 and head and foot coverings) or clothing 23 (and the materials and components there- 24 of), other than sensors, electronics, or 25 other items added to, and not normally as- 26 VerDate Sep 11 2014 00:27 Sep 02, 2020 Jkt 099200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\H8051.IH H8051 pbinns on DSKJLVW7X2PROD with BILLS 3 •HR 8051 IH sociated with, such personal protective 1 equipment or clothing; 2 ‘‘(ii) sanitizing and disinfecting wipes, 3 privacy curtains, beds and bedding, testing 4 swabs, gauze and bandages, tents, tarpau- 5 lins, covers, or bags; or 6 ‘‘(iii) any other textile medical sup- 7 plies and equipment described in para- 8 graph (1). 9 ‘‘(C) AVAILABILITY EXCEPTION.—Sub- 10 section (a) shall not apply to an item described 11 in subparagraph (B)— 12 ‘‘(i) that is, or that includes, a mate- 13 rial listed in section 25.104 of the Federal 14 Acquisition Regulation as one for which a 15 non-availability determination has been 16 made; or 17 ‘‘(ii) as to which the Secretary deter- 18 mines that a sufficient quantity of a satis- 19 factory quality of such item that is grown, 20 reprocessed, reused, or produced in the 21 United States cannot be procured as, and 22 when, needed at United States market 23 prices. 24 VerDate Sep 11 2014 00:27 Sep 02, 2020 Jkt 099200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\H8051.IH H8051 pbinns on DSKJLVW7X2PROD with BILLS 4 •HR 8051 IH ‘‘(D) EXCEPTION FOR SMALL PUR- 1 CHASES.—Subparagraph (A) shall not apply to 2 purchases for amounts that do not exceed 3 $150,000. A proposed purchase or contract for 4 an amount in excess of $150,000 may not be 5 divided into several purchases or contracts for 6 lesser amounts in order to qualify for the excep- 7 tion under this subparagraph. 8 ‘‘(E) GEOGRAPHIC COVERAGE.—In this 9 section, the term ‘United States’ means the sev- 10 eral states, the District of Columbia, the United 11 States territories and possessions, and the 12 Freely Associated States. 13 ‘‘(F) NOTIFICATION REQUIRED WITHIN 7 14 DAYS AFTER CONTRACT AWARD IF CERTAIN EX- 15 CEPTIONS APPLIED.—In the case of any con- 16 tract for the procurement of an item described 17 in subparagraph (B), if the Secretary applies 18 the exception described in subparagraph (C) 19 with respect to that contract, the Secretary 20 shall, not later than 7 days after the awarding 21 of the contract, post a notification that the ex- 22 ception has been applied on the internet website 23 maintained by the General Services Administra- 24 VerDate Sep 11 2014 00:27 Sep 02, 2020 Jkt 099200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\H8051.IH H8051 pbinns on DSKJLVW7X2PROD with BILLS 5 •HR 8051 IH tion known as FedBizOps.gov (or any successor 1 site). 2 ‘‘(G) TRAINING DURING FISCAL YEAR 3 2021.— 4 ‘‘(i) IN GENERAL.—The Secretary 5 shall ensure that each member of the ac- 6 quisition workforce in the Department of 7 Health and Human Services who partici- 8 pates personally and substantially in acqui- 9 sitions on a regular basis receives training 10 during fiscal year 2021 on the require- 11 ments of this paragraph and the regula- 12 tions implementing this paragraph. 13 ‘‘(ii) INCLUSION OF INFORMATION IN 14 NEW TRAINING PROGRAMS.—The Secretary 15 shall ensure that any training program for 16 the acquisition workforce developed or im- 17 plemented after fiscal year 2021, includes 18 comprehensive information on the require- 19 ments described in subparagraph (A). 20 ‘‘(H) APPLICATION TO OTHER AGEN- 21 CIES.—If responsibility for maintaining the 22 Strategic National Stockpile is transferred from 23 the Department of Health and Human Services 24 to any other Federal department or agency, the 25 VerDate Sep 11 2014 00:27 Sep 02, 2020 Jkt 099200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6201 E:\BILLS\H8051.IH H8051 pbinns on DSKJLVW7X2PROD with BILLS 6 •HR 8051 IH provisions of this paragraph shall apply to the 1 head of such department or agency. 2 ‘‘(I) EFFECTIVE DATE.—This paragraph 3 shall apply with respect to contracts entered 4 into by the Department of Health and Human 5 Services beginning 60 days after the date of en- 6 actment of this paragraph.’’. 7 SEC. 3. INVESTMENT CREDIT FOR QUALIFYING MEDICAL 8 PERSONAL PROTECTIVE EQUIPMENT MANU- 9 FACTURING PROJECTS. 10 (a) IN GENERAL.—Subpart E of part IV of sub- 11 chapter A of chapter 1 of the Internal Revenue Code of 12 1986 is amended by inserting after section 48C the fol- 13 lowing new section: 14 ‘‘SEC. 48D. QUALIFYING MEDICAL PERSONAL PROTECTIVE 15 EQUIPMENT MANUFACTURING PROJECT 16 CREDIT. 17 ‘‘(a) IN GENERAL.—For purposes of section 46, the 18 qualifying medical personal protective equipment manu- 19 facturing project credit for any taxable year is an amount 20 equal to 30 percent of the qualified investment for such 21 taxable year with respect to any qualifying medical per- 22 sonal protective equipment manufacturing project of the 23 taxpayer. 24 ‘‘(b) QUALIFIED INVESTMENT.— 25 VerDate Sep 11 2014 00:27 Sep 02, 2020 Jkt 099200 PO 00000 Frm 00006 Fmt 6652 Sfmt 6201 E:\BILLS\H8051.IH H8051 pbinns on DSKJLVW7X2PROD with BILLS 7 •HR 8051 IH ‘‘(1) IN GENERAL.—For purposes of subsection 1 (a), the qualified investment for any taxable year is 2 the basis of eligible property placed in service or 3 continued in service by the taxpayer during such 4 taxable year which is part of a qualifying medical 5 personal protective equipment manufacturing 6 project. 7 ‘‘(2) CERTAIN QUALIFIED PROGRESS EXPENDI- 8 TURES RULES MADE APPLICABLE.—Rules similar to 9 the rules of subsections (c)(4) and (d) of section 46 10 (as in effect on the day before the enactment of the 11 Revenue Reconciliation Act of 1990) shall apply for 12 purposes of this section. 13 ‘‘(3) LIMITATION.—The amount which is treat- 14 ed as the qualified investment for all taxable years 15 with respect to any qualifying medical personal pro- 16 tective equipment manufacturing project shall not 17 exceed the amount designated by the Secretary as el- 18 igible for the credit under this section. 19 ‘‘(c) DEFINITIONS.— 20 ‘‘(1) QUALIFYING MEDICAL PERSONAL PROTEC- 21 TIVE EQUIPMENT MANUFACTURING PROJECT.— 22 ‘‘(A) IN GENERAL.—The term ‘qualifying 23 medical personal protective equipment manufac- 24 turing project’ means a project— 25 VerDate Sep 11 2014 00:27 Sep 02, 2020 Jkt 099200 PO 00000 Frm 00007 Fmt 6652 Sfmt 6201 E:\BILLS\H8051.IH H8051 pbinns on DSKJLVW7X2PROD with BILLS 8 •HR 8051 IH ‘‘(i) which re-equips, expands, estab- 1 lishes, or continues existing medical per- 2 sonal protective equipment production of— 3 ‘‘(I) any item described in para- 4 graph (6)(B) of section 319F–2(a) of 5 the Public Health Service Act (42 6 U.S.C. 247d–6b(a)), or 7 ‘‘(II) any textile products for 8 medical applications which are not de- 9 scribed in subclause (I), as identified 10 by the Secretary, in consultation with 11 the Secretary of Health and Human 12 Services, and 13 ‘‘(ii) any portion of the qualified in- 14 vestment of which is certified by the Sec- 15 retary under subsection (d) as eligible for 16 a credit under this section. 17 ‘‘(B) EXCEPTION.—Subclause (I) of sub- 18 paragraph (A)(i) shall not include sensors, elec- 19 tronics, or other items added to, and not nor- 20 mally associated with, equipment or clothing de- 21 scribed in such subclause. 22 ‘‘(2) ELIGIBLE PROPERTY.—The term ‘eligible 23 property’ means any property— 24 VerDate Sep 11 2014 00:27 Sep 02, 2020 Jkt 099200 PO 00000 Frm 00008 Fmt 6652 Sfmt 6201 E:\BILLS\H8051.IH H8051 pbinns on DSKJLVW7X2PROD with BILLS 9 •HR 8051 IH ‘‘(A) which is necessary for the production 1 of property described in paragraph (1)(A)(i), 2 ‘‘(B) which is— 3 ‘‘(i) tangible personal property, or 4 ‘‘(ii) other tangible property (not in- 5 cluding a building or its structural compo- 6 nents), but only if such property is used as 7 an integral part of the manufacturing fa- 8 cility described in such paragraph, and 9 ‘‘(C) with respect to which depreciation (or 10 amortization in lieu of depreciation) is allow- 11 able. 12 ‘‘(d) QUALIFYING MEDICAL PERSONAL PROTECTIVE 13 EQUIPMENT MANUFACTURING PROJECT PROGRAM.— 14 ‘‘(1) ESTABLISHMENT.— 15 ‘‘(A) IN GENERAL.—Not later than 90 16 days after the date of enactment of this section, 17 the Secretary, in consultation with the Sec- 18 retary of Health and Human Services, shall es- 19 tablish a qualifying medical personal protective 20 equipment manufacturing project program to 21 consider and award certifications for qualified 22 investments eligible for credits under this sec- 23 tion to qualifying medical personal protective 24 equipment manufacturing project sponsors. 25 VerDate Sep 11 2014 00:27 Sep 02, 2020 Jkt 099200 PO 00000 Frm 00009 Fmt 6652 Sfmt 6201 E:\BILLS\H8051.IH H8051 pbinns on DSKJLVW7X2PROD with BILLS 10 •HR 8051 IH ‘‘(B) LIMITATION.—The total amount of 1 credits that may be allocated under the pro- 2 gram shall not exceed $7,500,000,000. 3 ‘‘(2) CERTIFICATION.— 4 ‘‘(A) APPLICATION PERIOD.—Each appli- 5 cant for certification under this paragraph shall 6 submit an application (containing such informa- 7 tion as the Secretary may require) during the 8 1-year period beginning on the date the Sec- 9 retary establishes the program under paragraph 10 (1). 11 ‘‘(B) TIME TO MEET CRITERIA FOR CER- 12 TIFICATION.—Each applicant for certification 13 shall have 1 year from the date of acceptance 14 by the Secretary of the application during 15 which to provide to the Secretary evidence that 16 the requirements of the certification have been 17 met. 18 ‘‘(C) PERIOD OF ISSUANCE.—An applicant 19 which receives a certification shall have 2 years 20 from the date of issuance of the certification in 21 order to place the project in service and if such 22 project is not placed in service by that time pe- 23 riod, then the certification shall no longer be 24 valid. 25 VerDate Sep 11 2014 00:27 Sep 02, 2020 Jkt 099200 PO 00000 Frm 00010 Fmt 6652 Sfmt 6201 E:\BILLS\H8051.IH H8051 pbinns on DSKJLVW7X2PROD with BILLS 11 •HR 8051 IH ‘‘(3) SELECTION CRITERIA.—In determining 1 which qualifying medical personal protective equip- 2 ment manufacturing projects to certify under this 3 section, the Secretary shall take into consideration 4 which projects— 5 ‘‘(A) will provide the greatest domestic job 6 creation and retention (both direct and indirect) 7 during the credit period, 8 ‘‘(B) will provide the largest amount of 9 medical personal protective equipment for which 10 there is the greatest need for purposes of the 11 Strategic National Stockpile (as described in 12 section 319F–2(a) of the Public Health Service 13 Act (42 U.S.C. 247d–6b(a))), 14 ‘‘(C) have the greatest potential for help- 15 ing to achieve medical manufacturing independ- 16 ence for the United States, and 17 ‘‘(D) have the greatest potential to meet 18 sudden surges in demand for personal protec- 19 tive equipment. 20 ‘‘(4) REVIEW AND REDISTRIBUTION.— 21 ‘‘(A) REVIEW.—Not later than 3 years 22 after the date of enactment of this section, the 23 Secretary shall review the credits allocated 24 under this section as of such date. 25 VerDate Sep 11 2014 00:27 Sep 02, 2020 Jkt 099200 PO 00000 Frm 00011 Fmt 6652 Sfmt 6201 E:\BILLS\H8051.IH H8051 pbinns on DSKJLVW7X2PROD with BILLS 12 •HR 8051 IH ‘‘(B) REDISTRIBUTION.—The Secretary 1 may reallocate credits awarded under this sec- 2 tion if the Secretary determines that— 3 ‘‘(i) there is an insufficient quantity 4 of qualifying applications for certification 5 pending at the time of the review, or 6 ‘‘(ii) any certification made pursuant 7 to paragraph (2) has been revoked pursu- 8 ant to paragraph (2)(B) because the 9 project subject to the certification has been 10 delayed as a result of third party opposi- 11 tion or litigation to the proposed project. 12 ‘‘(C) REALLOCATION.—If the Secretary de- 13 termines that credits under this section are 14 available for reallocation pursuant to the re- 15 quirements set forth in paragraph (2), the Sec- 16 retary is authorized to conduct an additional 17 program for applications for certification. 18 ‘‘(5) DISCLOSURE OF ALLOCATIONS.—The Sec- 19 retary shall, upon making a certification under this 20 subsection, publicly disclose the identity of the appli- 21 cant and the amount of the credit with respect to 22 such applicant.’’. 23 (b) CONFORMING AMENDMENTS.— 24 VerDate Sep 11 2014 00:27 Sep 02, 2020 Jkt 099200 PO 00000 Frm 00012 Fmt 6652 Sfmt 6201 E:\BILLS\H8051.IH H8051 pbinns on DSKJLVW7X2PROD with BILLS 13 •HR 8051 IH (1) Section 46 of the Internal Revenue Code of 1 1986 is amended— 2 (A) by striking ‘‘and’’ at the end of para- 3 graph (5); 4 (B) by striking the period at the end of 5 paragraph (6) and inserting ‘‘ [Text truncated for display. 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