Frequently Asked Questions
Who is eligible for the Vaccine Tax Credit or Refund?
Claim must be filed within 6 months of return or destruction, and the taxpayer must establish they repaid the tax to the ultimate purchaser or obtained their consent.
How does the Vaccine Tax Credit or Refund work?
Taxpayers can claim a refund or credit for excise taxes paid on vaccines that are later returned to the manufacturer (other than for resale) or destroyed.
What law authorizes the Vaccine Tax Credit or Refund?
The Vaccine Tax Credit or Refund is authorized under IRC §4132(b) of the Internal Revenue Code (Title 26, United States Code).
Statutory Text — IRC §4132
Source: Internal Revenue Code, Title 26, United States Code
§ 4132. Definitions and special rules(a) Definitions relating to taxable vaccinesFor purposes of this subchapter—(1) Taxable vaccineThe 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 A.
(J) Any vaccine against hepatitis B.
(K) Any vaccine against chicken pox.
(L) Any vaccine against rotavirus gastroenteritis.
(M) Any conjugate vaccine against streptococcus pneumoniae.
(N) Any trivalent vaccine against influenza or any other vaccine against seasonal influenza.
(O) Any meningococcal vaccine.
(P) Any vaccine against the human papillomavirus.
(2) VaccineThe term “vaccine” means any substance designed to be administered to a human being for the prevention of 1 or more diseases.
(3) United StatesThe term “United States” has the meaning given such term by section 4612(a)(4).
(4) ImporterThe 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 generalUnder 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 monthsParagraph (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 refundNo 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 onceNo 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.
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