Washington, DC – A number of basic and other chemicals are now subject to the reinstated Superfund Tax in the US. These federal taxes were originally levied to fund the Federal Hazardous Substance Superfund, but expired in 1995.
The money raised by Superfund excise tax is used by EPA to fund the clean-up of waste sites. However, there is now a backlog of Superfund sites awaiting funding. As part of President Biden’s Infrastructure Investment and Jobs Act, the reinstated taxes will apply to a list of chemicals until the end of 2031.
The taxes apply to companies manufacturing, producing or importing various chemicals. The tax will be imposed on both manufacturers and importers of a list of 42 basic chemicals, including benzene and toluene. A refund is available if they are exported, or used to make fertiliser, animal feed or fuel.
A second tax is being imposed on imports of a wider range of chemicals. This list includes TDI, which is subject to a $10.85 tax levy per US ton, which converts to about 1.2¢/kg. Propylene and ethylene oxides and glycols are also included. However, the list does not currently include MDI.
