New Chemical Excise Taxes Affect Multiple Industries
By Alex Smith, CPA
Certain chemical excise taxes that last saw the light of day back in the mid-1990s, are back and could apply to many more companies than just chemical manufacturers. These resurrected taxes impose additional tax on the sale of certain chemicals and substances made with chemicals. Due to their expiration almost 30-years ago, let’s look at the some of the new rules and criteria set forth by the IRS.
The Infrastructure Investment and Jobs Act, signed into law in November 2021, brought back these excise taxes to help fund the Hazardous Substance Superfund. The Superfund is designed to provide resources for cleaning and remediating some of the country’s most contaminated land. The Superfund also sets aside funds to help respond to environmental emergencies such as oil spills and natural disasters. In their original incarnation in the 1990s, substances subject to the Superfund excise taxes (Superfund taxes) contained more than 50% of an identified chemical.
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