,,ii #aaith ,,congress #b;d ,session ,s4 #eeac ,,in ,,the ,,senate ,,of ,,the ,,united ,,states ,september #bd1 #bjbf,mr4 ,cassidy introduced the following bill2 which was read twice and referred to the ,committee on ,finance ,a ,,bill ,to amend title ,,xviii of the ,social ,security ,program to establish a pilot program to incentivize certain hospitals to purchase personal protective equipment and medical consumables that are domestic products1 and for other purposes4 #a4 ,short title ,this ,act may be cited as the ,domestic ,manufacturing ,revitalization ,act of #bjbf4 #b4 ,domestic purchasing incentives for certain hospitals ,title ,,xviii of the ,social ,security ,act 7#db ,u4,s4,c4 #acie et seq47 is amended by inserting the following after section #ahff;,g3 #ahff;,h4 ,pilot program incentivizing domestic purchases of personal protective equipment and medical consumables by certain hospitals 7a7 ,in general ,not later than #b years after the date of enactment of this section1 the ,secretary shall establish a pilot program 7referred to in this section as the ,program7 that meets the requirements of this section to incentivize eligible hospitals 7as defined in subsection 7b77 to meet the domestic purchasing requirements 7as described in subsection 7c774 7b7 ,eligible hospitals defined 7#a7 ,eligible hospital ,in this section1 subject to paragraph 7#c71 the term eligible hospital means a hospital-- 7,a7 identified by the ,secretary under paragraph 7#b72 and 7,b7 that agrees to meet the purchasing requirements described in subsection 7c74 7#b7 ,identification ,the ,secretary shall identify each hospital that1 during the period beginning on the date that is #e years prior to the date of enactment of this section and ending on the date of such enactment1 received payment under this title in an amount greater than the average amount of payment received by hospitals under this title during such period4 7c7 ,domestic purchasing requirement 7#a7 ,in general ,subject to paragraph 7#b71 the domestic purchasing requirement described in this subsection is a requirement that not less than #dj percent of the personal protective equipment and medical consumables purchased by an eligible hospital that is participating in the ,program shall be domestic products4 7#b7 ,percentage adjustment ,the ,secretary may adjust the percentage described in paragraph 7#a7 to account for instances of supply chain disruptions1 natural disasters1 or national emergencies1 as determined by the ,secretary4 7#c7 ,attestation for domestic products 7,a7 ,submission to eligible hospitals ,each eligible hospital participating in the ,program shall require the manufacturer of each medical consumable and personal protective equipment that the hospital relies on to meet the domestic purchase requirements described in this subsection to annually submit to the hospital an attestation form described in subparagraph 7,b7 that such consumable or equipment is a domestic product4 7,b7 ,development of form ,the ,secretary shall develop an attestation form in which a manufacturer described in subparagraph 7,a7 shall attest under penalty of perjury that the medical consumable or personal protective equipment purchased by an eligible hospital is a domestic product4 7#d7 ,submission of data ,the ,secretary shall require each eligible hospital participating in the ,program1 to submit as part of any cost report required under this title-- 7,a7 the total dollar amount and quantity of personal protective equipment and medical consumables purchased by such hospital during the cost reporting period that are domestic products2 7,b7 the percentage of the total amount of personal protective equipment and medical consumables purchased by such hospital during the cost reporting period that are domestic products2 and 7,c7 each attestation form submitted to the hospital under paragraph 7#c77;,a74 7d7 ,decreased reimbursement rate 7#a7 ,in general ,for discharges occurring after the third year of the ,program1 for each eligible hospital participating in the ,program1 the ,secretary shall-- 7,a7 determine1 using the data submitted under paragraph 7#d7 of subsection 7c71 if such hospital met the purchasing requirements described in such subsection with respect to the preceding year2 and 7,b7 decrease the payment amount that would otherwise be made under the applicable payment system by the applicable percent 7as defined in paragraph 7#b774 7#b7 ,applicable percent defined ,in this subsection1 the term applicable percent means with respect to an eligible hospital that failed to meet the purchasing requirements-- 7,a7 for #a year1 #b percent2 7,b7 for #b years1 #c percent2 7,c7 for #c years1 #d percent2 7,d7 for #d years1 #e percent2 7,e7 for #e years1 #f percent2 7,f7 for #f years1 #g percent2 and 7,g7 for #g years1 #h percent4 7#c7 ,length of decreased rate ,any deduction in payment made pursuant to this subsection shall remain in effect after the termination of the ,program4 7e7 ,reimbursement of domestic products 7#a7 ,in general ,for discharges occurring in each year of the ,program1 for each eligible hospital participating in the ,program1 the ,secretary shall1 from amounts transferred to the ,secretary under section #c7;c7 of the ,domestic ,manufacturing ,revitalization ,act of #bjbf1 annually reimburse such hospital the dollar amount submitted by such hospital pursuant to subsection 7c77#d77;,a74 7#b7 ,transfer to ,federal ,hospital ,insurance ,trust ,fund ,after the ,secretary reimburses each hospital under paragraph 7#a71 the ,secretary shall transfer any remaining amounts transferred to the ,secretary under section #c7;c7 of the ,domestic ,manufacturing ,revitalization ,act of #bjbf1 to the ,federal ,insurance ,trust ,fund under section #ahag4 7f7 ,voluntary participation by certain other hospitals ,the ,secretary shall establish a process under which a hospital not identified by the ,secretary under subsection 7b77#b7 may elect to participate in the ,program4 ,in the case where a hospital makes an election under the preceding sentence1 the hospital shall be deemed to be an eligible hospital under this section4 7g7 ,trade agreements and ,buy ,american ,act 7#a7 ,in general ,the requirements of this section shall apply notwithstanding any requirements under the ,government ,procurement ,agreement1 any trade agreement to which the ,united ,states is a party1 or waiver under chapter #hc of title #da1 ,united ,states ,code 7commonly known as the ,buy ,american ,act74 7#b7 ,government ,procurement ,agreement defined ,for purposes of this subsection1 the term ,government ,procurement ,agreement means the ,agreement on ,government ,procurement referred to in section #aja7;d77#ag7 of the ,uruguay ,round ,agreements ,act 7#ai ,u4,s4,c4 #ceaa7;d77#ag774 7h7 ,additional definitions ,in this section3 7#a7 ,domestic product 7,a7 ,in general 7i7 ,definition ,except as described in subparagraph 7,b71 the term domestic product1 with respect to a medical consumable or personal protective equipment1 means such a consumable or equipment that meets the following requirements3 7,i7 ,the final assembly or processing of such consumable or equipment occurs in the ,united ,states4 7,,ii7 ,not less than the applicable percent of the total cost of components 7as defined in subparagraph 7,c77 of such consumable or equipment is from domestic content4 7ii7 ,applicable percent ,for purposes of clause 7i77,,ii71 the term applicable percent means-- 7,i7 with respect to a year of the ,program occurring before the fourth year of the ,program1 #fj percent2 and 7,,ii7 with respect to the fourth year and subsequent years of the ,program1 #ge percent4 7,b7 ,textile-based personal protective equipment ,with respect to textile-based personal protective equipment1 such as masks1 gowns1 gloves1 and other equipment determined appropriate by the ,secretary1 the term domestic product means such equipment that meets the following requirements3 7i7 ,each stage of production of the textile-based personal protective equipment occurs in the ,united ,states4 7ii7 ,each textile1 fabric1 or fiber that comprises such equipment is grown1 reprocessed1 reused1 or produced in the ,united ,states4 7,c7 ,total cost of components ,for purposes of subparagraph 7,a71 the term total cost of components means-- 7i7 with respect to a component of a medical consumable or personal protective equipment purchased by the manufacturer of such consumable or equipment1 the acquisition costs of such component1 including transportation costs and any tariff or duty applicable to such component2 and 7ii7 with respect to a component of such consumable or equipment manufactured by the manufacturer of such consumable or equipment1 the manufacturing costs of such component1 including transportation and overhead costs attributable to the component1 minus any profit and final assembly cost attributable to the component4 7#b7 ,medical consumable ,the term medical consumable means-- 7,a7 a medical or surgical instrument such as a syringe1 needle1 infusion pump1 forcep1 and scalpel2 7,b7 a medical or surgical supply1 such as an intravenous bag1 catheter1 tracheostomy tube1 anesthesia equipment1 gauze1 bandage1 suture1 and any diagnostic or laboratory reagent2 and 7,c7 any related part or component determined appropriate by the ,secretary4 7#c7 ,personal protective equipment ,the term personal protective equipment means equipment used for the protection of individuals in a health care setting and includes a surgical mask1 ,n#ie respirator1 glove1 gown1 and any other related medical part or component determined appropriate by the ,secretary4 7i7 ,implementation ,this section shall be implemented through notice and comment rulemaking4 7j7 ,termination ,the ,program shall terminate on the date that is #i years after the date on which the ,secretary implements the ,program4 4 #c4 ,modifications to rates of duty to address domestic production of personal protective equipment and medical consumables 7a7 ,in general ,the ,president1 by proclamation1 shall revise the ,harmonized ,tariff ,schedule of the ,united ,states 7in this section referred to as the ,,hts7 to establish rates of duty for covered articles that are equivalent to #cjj percent ad valorem4 7b7 ,phase-,in of duty increases ,the ,president1 by proclamation1 shall phase-in the application of the duty increases required by subsection 7a7 as follows3 7#a7 ,on and after the date that is #ahj days after the date of the enactment of this ,act1 #aj percent of the total duty increase with respect to an article shall apply4 7#b7 ,on and after the date that is #b years after such date of enactment1 #be percent of the total duty increase with respect to an article shall apply4 7#c7 ,on and after the date that is #d years after such date of enactment1 #ej percent of the total duty increase with respect to an article shall apply4 7#d7 ,on and after the date that is #e years after such date of enactment1 #ajj percent of the total duty increase with respect to an article shall apply4 7c7 ,transfer of amounts ,not less frequently than annually1 the ,secretary of the ,treasury shall transfer to the ,secretary of ,health and ,human ,services an amount equal to the amount of any additional duties collected pursuant to the increased duty rates under this section during the previous year4 7d7 ,covered article defined ,in this section1 the term covered article means an article under any of the following subheadings of the ,,hts3 7#a7 #cjje4aj4ej4 7#b7 #cjje4ij4aj4 7#c7 #cjje4ij4ej4 7#d7 #cjjf4aj4jj4 7#e7 #chbb4aa4jj4 7#f7 #chbb4ai4jj4 7#g7 #cibc4bi4jj4 7#h7 #cibf4bj4aj4 7#i7 #djae4ab4jj4 7#aj7 #fbaj4aj4ej4 7#aa7 #fcjg4ij4ih4 7#ab7 #ijah4ca4jj4 7#ac7 #ijah4cb4jj4 7#ad7 #ijah4ci4jj4 7#ae7 #ijah4ij4cj4 7#af7 #ijah4ij4ge4 7#ag7 #ijah4ij4hj4 7#ah7 #ijai4bj4jj4 7#ai7 #ijbj4jj4fj4 7#bj7 #ijbj4jj4ij4 #d4 ,credits for production of qualified personal protective equipment and investments in personal protective equipment manufacturing property 7a7 ,production of qualified personal protective equipment 7#a7 ,in general ,subpart ,d of part ,,iv of subchapter ,a of chapter #a of the ,internal ,revenue ,code of #aihf is amended by adding at the end the following new section3 #de;,,bb4 ,credit for production of qualified personal protective equipment 7a7 ,in general ,for purposes of section #ch1 the personal protective equipment production credit for any taxable year is an amount equal to the sum of the credit amounts determined under subsection 7b7 with respect to each item of qualified personal protective equipment which is-- 7#a7 produced by the taxpayer1 and 7#b7 during the taxable year1 sold by such taxpayer to an unrelated person4 7b7 ,credit amount ,the amount determined under this subsection with respect to any item of qualified personal protective equipment shall be equal to-- 7#a7 in the case of an ,n#ie respirator mask1 #j4be1 7#b7 in the case of a surgical mask1 #j4aj1 7#c7 in the case of a medical glove1 #j4je1 7#d7 in the case of a surgical gown1 #j4ej1 and 7#e7 in the case of a ventilator or any other major equipment which has been designated by the ,secretary of ,health and ,human ,services for purposes of this section1 #bej4 7c7 ,qualified personal protective equipment ,for purposes of this section1 the term qualified personal protective equipment means any tangible personal property which-- 7#a7 is described in subsection 7b71 7#b7 is produced in the ,united ,states1 7#c7 consists of-- 7,a7 in the case of any equipment produced during calendar year #bjbf or #bjbg1 not less than #fj percent domestic content1 and 7,b7 in the case of any equipment produced after ,december #ca1 #bjbg1 not less than #ge percent domestic content1 and 7#d7 has been certified by the ,secretary of ,health and ,human ,services as satisfying applicable ,federal safety standards4 7d7 ,termination ,this section shall not apply to any qualified personal protective equipment produced after ,december #ca1 #bjce4 4 7#b7 ,credit to be part of general business credit ,subsection 7b7 of section #ch of such ,code is amended by striking plus at the end of paragraph 7#dj71 by striking the period at the end of paragraph 7#da7 and inserting 1 plus1 and by adding at the end the following new paragraph3 7#db7 the personal protective equipment production credit determined under section #de;,,bb7a74 4 7b7 ,investment credit in lieu of production credit 7#a7 ,in general ,section #df of the ,internal ,revenue ,code of #aihf is amended by striking and at the end of paragraph 7#f71 by striking the period at the end of paragraph 7#g7 and inserting 1 and1 and by adding at the end the following new paragraph3 7#h7 the personal protective equipment investment credit4 4 7#b7 ,personal protective equipment investment credit ,subpart ,e of part ,,iv of subchapter ,a of chapter #a of such ,code is amended by inserting after section #dh;,e the following3 #dh;,f4 ,investment credit for personal protective equipment manufacturing property 7a7 ,in general ,for purposes of section #df1 the personal protective equipment investment credit for any taxable year is an amount equal to #bj percent of the qualified investment for such taxable year with respect to any ,,ppe manufacturing facility of a taxpayer4 7b7 ,qualified investment 7#a7 ,in general ,for purposes of subsection 7a71 the qualified investment with respect to any ,,ppe manufacturing facility for any taxable year is the basis of any personal protective equipment manufacturing property placed in service by the taxpayer during such taxable year which is part of a ,,ppe manufacturing facility4 7#b7 ,personal protective equipment manufacturing property 7,a7 ,in general ,for purposes of this section1 the term personal protective equipment manufacturing property means property-- 7i7 which is tangible property1 7ii7 with respect to which depreciation 7or amortization in lieu of depreciation7 is allowable1 7iii7 which is-- 7,i7 constructed1 reconstructed1 or erected by the taxpayer1 or 7,,ii7 acquired by the taxpayer if the original use of such property commences with the taxpayer1 7iv7 which consists of-- 7,i7 in the case of any property placed in service during calendar year #bjbf or #bjbg1 not less than #fj percent domestic content1 and 7,,ii7 in the case of any property placed in service after ,december #ca1 #bjbg1 not less than #ge percent domestic content1 and 7v7 which is integral to the operation of the ,,ppe manufacturing facility4 7,b7 ,buildings and structural components ,rules similar to the rules under section #dh;,d7b77#b77;,b7 shall apply for purposes of this paragraph4 7#c7 ,,ppe manufacturing facility ,for purposes of this section1 the term ,,ppe manufacturing facility means a facility located in the ,united ,states which is used predominately in the production of qualified personal protective equipment 7as defined in section #de;,,bb7c774 7c7 ,coordination with personal protective equipment production credit ,if a credit is allowed under this section for any taxable year with respect to any personal protective equipment manufacturing property placed in service by the taxpayer during such taxable year which is part of a ,,ppe manufacturing facility1 no credit shall be allowed under section #de;,,bb for any qualified personal protective equipment 7as defined in section #de;,,bb7c77 which is produced at such ,,ppe manufacturing facility4 7d7 ,termination ,this section shall not apply to any personal protective equipment manufacturing property which is placed in service after ,december #ca1 #bjce4 4 7c7 ,clerical amendments 7#a7 ,the table of sections for subpart ,d of part ,,iv of subchapter ,a of chapter #a of the ,internal ,revenue ,code of #aihf is amended by adding at the end the following new item3 ,sec4 #de;,,bb4 ,credit for production of qualified personal protective equipment4 4 7#b7 ,the table of sections for subpart ,e of part ,,iv of subchapter ,a of chapter #a of such ,code is amended by adding at the end the following new item3 ,sec4 #dh;,f4 ,investment credit for personal protective equipment manufacturing property4 4 7d7 ,effective dates ,the amendments made by this section shall apply to qualified personal protective equipment produced1 and personal protective equipment manufacturing property placed in service1 after ,december #ca1 #bjbe4