
From the U.S. Code Online via GPO Access
[wais.access.gpo.gov]
[Laws in effect as of January 2, 2001]
[Document not affected by Public Laws enacted between
  January 2, 2001 and January 28, 2002]
[CITE: 26USC4132]

 
                     TITLE 26--INTERNAL REVENUE CODE
 
                 Subtitle D--Miscellaneous Excise Taxes
 
                 CHAPTER 32--MANUFACTURERS EXCISE TAXES
 
                     Subchapter C--Certain Vaccines
 
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 of the following vaccines 
    which are manufactured or produced in the United States or entered 
    into the United States for consumption, use, or warehousing:
            (A) Any vaccine containing diphtheria toxoid.
            (B) Any vaccine containing tetanus toxoid.
            (C) Any vaccine containing pertussis bacteria, extracted or 
        partial cell bacteria, or specific pertussis antigens.
            (D) Any vaccine against measles.
            (E) Any vaccine against mumps.
            (F) Any vaccine against rubella.
            (G) Any vaccine containing polio virus.
            (H) Any HIB vaccine.
            (I) Any vaccine against hepatitis B.
            (J) Any vaccine against chicken pox.
            (K) Any vaccine against rotavirus gastroenteritis.
            (L) Any conjugate vaccine against streptococcus pneumoniae.

                             (2) Vaccine

        The term ``vaccine'' means any substance designed to be 
    administered to a human being for the prevention of 1 or more 
    diseases.

                          (3) United States

        The term ``United States'' has the meaning given such term by 
    section 4612(a)(4).

                            (4) 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 by section 4131 on any prior sale of such 
    vaccine and such tax is not abated, credited, or refunded.

(c) Other special rules

                  (1) Certain uses treated as sales

        Any manufacturer, producer, or importer of a vaccine which uses 
    such vaccine before it is sold shall be liable for the tax imposed 
    by section 4131 in the same manner as if such vaccine were sold by 
    such manufacturer, producer, or importer.

         (2) Treatment of vaccines shipped to United States 
                                 possessions

        Section 4221(a)(2) shall not apply to any vaccine shipped to a 
    possession of the United States.

                    (3) 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.

    (4) 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.

(Added Pub. L. 100-203, title IX, Sec. 9201(a), Dec. 22, 1987, 101 Stat. 
1330-329; amended Pub. L. 100-647, title II, Sec. 2006(a), Nov. 10, 
1988, 102 Stat. 3612; Pub. L. 105-34, title IX, Sec. 904(b), (c), Aug. 
5, 1997, 111 Stat. 873, 874; Pub. L. 105-277, div. C, title XV, 
Sec. 1503(a), div. J, title III, Sec. 3002(a), Oct. 21, 1998, 112 Stat. 
2681-741, 2681-905; Pub. L. 106-170, title V, Sec. 523(a)(1), (b)(1), 
Dec. 17, 1999, 113 Stat. 1927.)


                               Amendments

    1999--Subsec. (a)(1)(K). Pub. L. 106-170, Sec. 523(b)(1), repealed 
Pub. L. 105-277, Sec. 1503(a). See 1998 Amendment note below.
    Subsec. (a)(1)(L). Pub. L. 106-170, Sec. 523(a)(1), added subpar. 
(L).
    1998--Subsec. (a)(1)(K). Pub. L. 105-277, Sec. 3002(a), added a 
subpar. (K) identical to that added by Pub. L. 105-277, Sec. 1503(a). 
See below.
    Pub. L. 105-277, Sec. 1503(a), which directed amendment of section 
4132(1) by adding a new subpar. (K) at the end, was repealed by Pub. L. 
106-170, Sec. 523(b)(1).
    1997--Subsec. (a)(1). Pub. L. 105-34, Sec. 904(b), amended heading 
and text of par. (1) generally. Prior to amendment, text read as 
follows: ``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.''
    Subsec. (a)(2) to (8). Pub. L. 105-34, Sec. 904(c), redesignated 
pars. (6) to (8) as (2) to (4), respectively, and struck out former 
pars. (2) to (5) which read as follows:
    ``(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.''
    1988--Subsec. (c). Pub. L. 100-647 added pars. (1) and (2) and 
redesignated former pars. (1) and (2) as (3) and (4), respectively.


                    Effective Date of 1999 Amendment

    Pub. L. 106-170, title V, Sec. 523(a)(2), Dec. 17, 1999, 113 Stat. 
1927, provided that:
    ``(A) Sales.--The amendment made by this subsection [amending this 
section] shall apply to vaccine sales after the date of the enactment of 
this Act [Dec. 17, 1999], but shall not take effect if subsection (b) 
[see note below] does not take effect.
    ``(B) Deliveries.--For purposes of subparagraph (A), in the case of 
sales on or before the date described in such subparagraph for which 
delivery is made after such date, the delivery date shall be considered 
the sale date.''
    Pub. L. 106-170, title V, Sec. 523(b)(3), Dec. 17, 1999, 113 Stat. 
1928, provided that: ``The amendments made by this subsection [amending 
this section and section 9510 of this title and repealing provisions set 
out as notes under this section and section 9510 of this title] shall 
take effect as if included in the provisions of the Omnibus Consolidated 
and Emergency Supplemental Appropriations Act, 1999 [Pub. L. 105-277] to 
which they relate.''


                    Effective Date of 1998 Amendment

    Pub. L. 105-277, div. C, title XV, Sec. 1503(b), div. I, title III, 
Sec. 3002(b), Oct. 21, 1998, 112 Stat. 2681-741, 2681-905, which 
provided that amendment of this section by Pub. L. 105-277 was 
applicable to sales after Oct. 21, 1998, and that delivery date would be 
considered sale date in the case of sales on or before Oct. 21, 1998, 
was repealed by Pub. L. 106-170, title V, Sec. 523(b)(1), Dec. 17, 1999, 
113 Stat. 1927.


                    Effective Date of 1997 Amendment

    Amendment by Pub. L. 105-34 effective on the day after Aug. 5, 1997, 
see section 904(d) of Pub. L. 105-34, set out as a note under section 
4131 of this title.


                    Effective Date of 1988 Amendment

    Section 2006(c) of Pub. L. 100-647 provided that: ``The amendments 
made by this section [amending this section and section 9510 of this 
title] shall take effect as if included in the amendments made by 
section 9201 of the Omnibus Budget Reconciliation Act of 1987 [Pub. L. 
100-203].''


                Limitation on Certain Credits or Refunds

    Section 904(e) of Pub. L. 105-34 provided that: ``For purposes of 
applying section 4132(b) of the Internal Revenue Code of 1986 with 
respect to any claim for credit or refund filed before January 1, 1999, 
the amount of tax taken into account shall not exceed the tax computed 
under the rate in effect on the day after the date of the enactment of 
this Act [Aug. 5, 1997].''

                  Section Referred to in Other Sections

    This section is referred to in sections 4131, 9510 of this title.
