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Tax Issue Page

Tax Issues in the Chemical Distribution Industry

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ACD supports a balanced tax system that does not impose undue burdens on the business community; one that protects the American economy and advances innovation.

For more information on specific tax policies, please explore the topics below and browse ACD’s resource database. For the latest actions in these areas, follow us on X and visit our Newsroom.

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Superfund Tax

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In 1980, Congress passed the Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA), which established a program to protect public health and the environment by managing the cleanup of contaminated sites and by responding to nationally significant environmental emergencies. Through CERCLA, a federal trust fund, or Superfund, was created to finance the cleanup of uncontrolled or abandoned waste sites, accidents, spills, or other emergency releases of pollutants into the environment. In the event parties responsible for the pollution cannot be located or identified, the U.S. Environmental Protection Agency can draw on the Superfund to finance its cleanup efforts. The Superfund was primarily financed through three taxes: a petroleum tax, a chemical tax, and a corporate income tax. These taxes expired in 1996.

On November 15, 2021, Congress resurrected the tax on taxable chemicals and taxable substances through the Infrastructure Investment and Jobs Act (IIJA). This tax took effect July 1, 2022.Then on August 16, 2022, Congress brought back a second Superfund tax on crude oil and petroleum products through the passage of the Inflation Reduction Act, reinstating this tax at a rate of 16.4 cents per barrel. This tax took effect January 1, 2023.

With limited implementation guidance from the Internal Revenue Service (IRS), compliance with the tax filing requirements has been challenging. On March 29, 2023, the IRS issued proposed regulations for the Superfund tax on chemicals.

ACD has prepared many resources, available through the links below, to help companies comply with the law. If you have questions about the Superfund tax for ACD, please contact Analisa Puzzanghero.

 

Featured Resources

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If you are interested in accessing member-exclusive Superfund Tax document, please contact Jenni Jenkins, Senior Director of Membership at jjenkins@acd-chem.com.

For further questions about NACD’s Taxes Issue Page, please contact Nicholas Breslin, Manager of Regulatory Affairs at nbreslin@acd-chem.com.