In addition to potential funding from the excise tax, the House of Representatives previously approved $1.5 billion in appropriations for the Superfund . On November 15, 2021, President Biden signed the Infrastructure Investment and Jobs Act into law, reinstating two long-expired Superfund excise taxes on certain manufactured and imported chemicals, with effect as of July 1, 2022, through December 31, 2031. Tune in to find out more. Section 80201 of the IIJA amends Section 4661 of the IRC of 1986 to reestablish the chemical superfund excise taxes for 42 different chemicals. The $1.2 trillion infrastructure bill making its way through the Senate contains a $14.55 billion tax hike on American chemical and mineral producers. Originally enacted in 1980 as the Hazardous Waste Contamination Act, the Superfund was an excise tax assessed against the chemical, oil and gas industries, according to John Beaty, general manager over excise tax at Avalara. Section 80201 of the bill would revive long-expired Superfund excise taxes at twice their previous level. The Socorro site is one of 49 previously unfunded high-priority sites that will receive money. This law created a tax on the chemical and petroleum industries and provided broad Federal authority to respond directly to releases or threatened releases of . The original Superfund taxes targeted three areas: petroleum excise taxes, chemical feedstock excise taxes, and environmental income taxes. The superfund chemicals excise tax has been reinstated and expanded as part of the recently enacted Infrastructure Investment and Jobs Act. 99-499) expanded the Superfund chemicals excise tax to include imported chemical derivatives and added the special environmental tax on corporate income. The reinstated taxes focus on chemicals and hazardous . It noted that they would give an unfair advantage to foreign producers not affected by the tax and therefore be detrimental to U.S. production. "For specific chemicals and specific . These chemicals include chlorine, ethylene, propylene, and other chemical building blocks for compounds used in everything from automobiles to building and construction. The excise taxes are effective July 1, 2022 . The American Chemistry Council (ACC) estimated that reinstating Superfund excise taxes could put over 1,000 industry jobs at risk and result in a $1.211 billion per year cost on the American chemical industry. Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, SECTION 1. Tune in to find out more. the Superfund law originally paid for hazardous waste cleanups through an excise tax on certain petroleum and chemical products. WASHINGTON (December 14, 2021) - The American Chemistry Council (ACC) issued the following statement in response to the introduction of the Ethylene is Essential for Chemistry and Manufacturing Act by Reps. John Moolenaar (R-MI) and Dan Meuser (R-PA.).The legislation would exempt ethylene from new Superfund excise taxes imposed on 42 chemicals, critical minerals, and metallic elements as . The excise taxes are effective July 1, 2022. The reinstated Superfund chemical taxes must be reported on Form 6627, Environmental Taxes, which is attached to Form 720, Quarterly Federal Excise Tax Return. Now that the Biden administration has resurrected Superfund excise taxes on dozens of hazardous chemicals and substances, the countdown is on for the IRS to release long-awaited rules before the taxes begin July 1. 15 Who funds Superfund? Superfund Excise Tax on Chemical Sales The return of the Superfund excise tax on chemicals affects taxpayers that manufacture, produce, or import certain chemicals, as it imposes an excise tax on the sale of 42 specific chemicals listed in Section 4661 of the tax code, including ammonia, butane, benzene, mercury, and other common products. The Infrastructure Investment and Jobs Act, which President Biden signed into law on November 15, 2021, reinstates Superfund excise taxes on the sale and import of certain chemicals as part of the law's revenue raising provisions. Finally, Notice 2021-66 seeks input from taxpayers on whether any additional clarification or guidance is required. A total of $3.5 billion is being invested in remediation efforts for Superfund sites across the country and the law reinstates chemical excise taxes to help pay for it. The Comprehensive Environmental Response, Compensation, and Liability Act enacted in 1980 established superfund programs to be administered by the US Environmental Protection Agency (EPA) and funded through excise taxes on petroleum and chemical manufacturers and importers. The Superfund trust fund receives money from three major sources annually: • $553 million from petroleum excise taxes; • $273 million from chemical feedstock excise taxes; and • $504 million from environmental income taxes. "Reinstating the Superfund chemical excise taxes at these new levels would impose a $1.211 billion per year cost on American chemistry," the report said. 9 What is a Superfund Australia? The IRS today released an advance version of Notice 2021-66 regarding the reinstated excise taxes imposed on certain chemicals and substances under sections 4661 and 4671 (often referred to as "Superfund" excise taxes). The reinstated taxes focus on chemicals and hazardous . Nestled in President Biden's recently enacted Infrastructure Investment and Jobs Act is a bipartisan feat that deserves more attention: the resurrection of Superfund excise taxes on dozens of chemicals and hazardous substances. Reinstatement of the Superfund taxes will substantially impact many NACD members. The Chemicals Superfund Tax and the Hazardous Substances Tax rates would vary from $0.44 to $9.74 per ton. 8 What is the largest Superfund site in the US? Expenditures were administered by the Environmental Protection Agency and used to clean up hazardous waste sites around the United States. On August 10, as part of the United State Senate's bipartisan infrastructure bill, the excise tax pertaining to a host of chemicals, including benzene, arsenic and mercury, was reinstated. Initially, the Superfund program called for taxes by manufacturers of crude oil and certain chemicals to fund a trust to pay for environmental cleanup activities. The Infrastructure Bill reinstated the Superfund Excise Taxes on chemicals and taxable substances, effective July 1, 2022. Make no mistake: These are taxes. 6d ago • 12 mins. Numerous smaller sources — primarily cost recovery, penalties, income taxes, and interest income — add another . Participants of the live webinar will be eligible for 1 free CPE credit. These excises taxes were originally established in 1980 by the Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA), but later expired in 1995. The Hazardous Substance Superfund financing rate was an excise tax of 9.7 cents per barrel of crude oil that applied from 1987 through 1995. Superfund Excise Taxes - They're Back! 3 Chemical excise taxes that would be impacted by the IIJA include the "Tax on Certain Chemicals" imposed in 1980 by the Comprehensive Environmental Response, Compensation, and Liability Act of 1980 (P.L. Since then, 26 U.S. Code § 4661 - Imposition of tax. Implications of the Superfund chemicals excise tax In this webcast, EY panelists discuss the impact to sectors that import or manufacture chemicals or chemical compounds subject to the excise tax and some of the nuances that will prove challenging in identifying them. 6d ago • 12 mins. For periods before 1992, the item relating to xylene in the preceding table shall be applied by substituting "10.13" for "4.87". 6 Are Superfund sites safe? The Superfund Excise Tax: Back in action. That authority expired in 1995 . Reinstated, the Superfund excise taxes will apply to a long list of chemicals and chemical-containing substances, effective July 1, 2022 through Dec. 31, 2031, absent extension. Congress based the excise taxes on the premise that petrochemicals from crude oil, and other commercial chemicals, were common sources of contamination. Excise Tax on Crude Oil. This direct tax hike on American producers would result in higher prices for consumers, threaten thousands of jobs, and undermine domestic . 10 Why was Superfund created? Section 4661 imposes a per-ton tax, ranging from $0.44 to $9.74 per ton on the following 42 chemicals: Section 4671 imposes taxes on an importer's sale or use of a list of specified substances. On November 15, 2021, President Biden signed the Infrastructure Investment and Jobs Act into law, reinstating two long-expired Superfund excise taxes on certain manufactured and imported chemicals, with effect as of July 1, 2022, through December 31, 2031. Chemical Superfund Excise Taxes Reinstated, Increased and Expanded by US Infrastructure Act; House-Passed Build Back Better Act Proposes Reinstatement of Superfund Excise Tax on Crude Oil and . When using the core inflation measurement, $1 in 1995 is equivalent in buying power to $1.80 in 2021, a difference of about 80% on average, according to an inflation calculator. The IRS recently released guidance (Notice 2021-66,) providing key information on the excise taxes imposed on certain chemicals and substances under Sections 4661 and 4671—often referred to as "Superfund" excise taxes.Superfund taxes were last effective in 1995 and were imposed on the sale or use of 50 identified chemicals as well as certain substances manufactured or produced from such . The original Superfund taxes targeted three areas: petroleum excise taxes, chemical feedstock excise taxes, and environmental income taxes. Effective July 1, 2022, section 80201 of the IIJA reinstates the Superfund chemical taxes with several modifications, including to the applicable rates of tax. What Taxes Are Being Reinstated? Request for Comments Background Register Effective July 1, 2022, after a 25-year expiration, Congress reinstated two excise taxes on chemicals and imported hazardous substances via the Infrastructure Investment and Jobs Act. 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