US Superfund taxes take effect on chemicals

HOUSTON (ICIS)–On Friday, the US will revive Superfund taxes on 42 building-block chemicals as well as imports of several substances made from those chemicals.

The two Superfund taxes were allowed to end in the mid-1990s. The US is reviving them as part of the $1trn Infrastructure Investment and Jobs Act that President Joe Biden signed into law in November.

The proceeds raised by the taxes will help replenish the government’s Superfund programme, which pays for the clean-up of waste sites.

The US is reviving two different Superfund taxes.

The first one is levied on the sale or use of 42 chemicals. These taxes are imposed on companies that make or import the 42 chemicals.

The following table shows 42 chemicals and their tax rate.

Taxable Chemical	Alias	$/Short Ton	Cent/lb
Acetylene		9.74	0.487
Ammonia		5.28	0.264
Antimony Trioxide		7.40	0.370
Arsenic Trioxide		6.82	0.341
Barium sulphide		4.60	0.230
Benzene		9.74	0.487
Bromine		8.90	0.445
Butadiene	BD	9.74	0.487
Butane		9.74	0.487
Butylene		9.74	0.487
Chlorine		5.40	0.270
Chromite		3.04	0.152
Cupric oxide		7.18	0.359
Cupric sulphate		3.74	0.187
Cuprous oxide		7.94	0.397
Ethylene		9.74	0.487
Hydrochloric acid	HCl	0.58	0.029
Hydrogen fluoride	hydrofluoric acid (HF)	8.46	0.423
Lead oxide		8.28	0.414
Methane		6.88	0.344
Naphthalene		9.74	0.487
Nitric acid		0.48	0.024
Phosphorus		8.90	0.445
Potassium dichromate		3.38	0.169
Potassium hydroxide	Caustic potash	0.44	0.022
Propylene		9.74	0.487
Sodium dichromate		3.74	0.187
Sodium hydroxide	Caustic soda	0.56	0.028
Stannic chloride		4.24	0.212
Stannous chloride		5.70	0.285
Sulphuric acid		0.52	0.026
Toluene		9.74	0.487
Xylene		9.74	0.487
Zinc chloride		4.44	0.222
Zinc sulphate		3.80	0.190
Antimony		8.90	0.445
Arsenic		8.90	0.445
Cadmium		8.90	0.445
Chromium		8.90	0.445
Cobalt		8.90	0.445
Mercury		8.90	0.445
Nickel		8.90	0.445

The chemical tax does include some exceptions.

Exporters can apply for a refund, according to Deloitte, a consultancy.

Companies that use the chemicals to make fuel, fertilizer or animal feed are exempt.

Based on those exemptions, hydrofluoric acid or propylene used in the alkylation units of refineries could be exempt, because those chemicals would be used to make gasoline. Butane could avoid the tax if it is blended in gasoline.

Ammonia used to make nitrogen fertilizers could also avoid the tax.

Methane could escape the taxes if it is burned as a fuel in power plants or used to make hydrogen for feedstock in refineries.

However, if the methane is used to make methanol for downstream chemical production, it could be taxed.

The tax also exempts coal derivatives and sulphuric acid that is a by-product of air-pollution control.

TAXABLE SUBSTANCES
The second tax covers substances sold or used by importers.

The government has published three lists of substances that could fall under the tax. The most recent list was published earlier in June, and it includes 121 substances and their tax rates.

The following table shows the full list of the 121 substances that the International Revenue Service (IRS) says could fall under the Superfund tax. The list includes the tax rates for each of the substances.

Substance	Alias	$/Short Ton	Cent/lb
1,3-butylene glycol	BG	7.28	0.33
1,4 butanediol	BDO	4.68	0.21
1,5,9-cyclododecatriene		9.74	0.44
2-ethyl hexanol	2-EH	7.16	0.32
2-ethylhexyl acrylate		7.34	0.33
acetone		20.06	0.91
acetylene black		10.52	0.48
acrylic acid resins		5.65	0.26
methacrylic acid resins		14.94	0.68
acrylonitrile	ACN	9.38	0.43
adipic acid		6.13	0.28
adiponitrile	ADP	8.57	0.39
allyl chloride		10.38	0.47
alpha-methylstyrene		9.93	0.45
ammonium nitrate	AN	1.49	0.07
aniline		9.4	0.43
benzaldehyde		8.47	0.38
benzoic acid		7.31	0.33
bisphenol-A	BPA	10.23	0.46
butanol	butyl alcohol	6.31	0.29
butyl acrylate	butyl-A	6.84	0.31
butyl benzyl phthalate		12.15	0.55
carbon tetrachloride		10.62	0.48
chlorinated polyethylene		10.25	0.46
chloroform		10.51	0.48
chromic acid		4.37	0.20
cumene		9.74	0.44
cyclododecanol		9.05	0.41
cyclohexane	CX	10.02	0.45
decabromodiphenyl oxide		17.99	0.82
di-2 ethyl hexyl phthalate		7.37	0.33
diethanolamine	DEA	6.01	0.27
diglycidyl ether of bisphenol-A		13.86	0.63
diisopropanolamine		12.76	0.58
dimethyl terephthalate	DMT	5.91	0.27
dimethyl-2, 6-naphthalene dicarboxylate		6.81	0.31
di-n-hexyl adipate		8.23	0.37
diphenyl oxide		13.73	0.62
diphenylamine		10.28	0.47
epichlorohydrin	EPC	12.89	0.58
ethyl acrylate	ethyl-A	4.09	0.19
ethyl alcohol for nonbeverage use	ethanol	5.94	0.27
ethyl chloride		4.52	0.21
ethyl methyl ketone	methyl ethyl ketone (MEK)	7.6	0.34
ethyl benzene	ethylbenzene (EB)	9.74	0.44
ethylene dibromide		9.03	0.41
ethylene dichloride	EDC	6.62	0.30
ethylene glycol	monoethylene glycol (MEG)	4.38	0.20
ethylene oxide	EO	6.23	0.28
ferrochrome ov 3 pct. carbon		4.83	0.22
ferrochromium nov 3 pct		4.83	0.22
hexabromocyclododecane		9.11	0.41
hexamethylenediamine		8.93	0.41
isobutyl acetate		4.47	0.20
Isophthalic acid		6.23	0.28
isopropyl acetate		4.54	0.21
Isopropyl alcohol	isopropanol (IPA)	6.82	0.31
linear alpha olefins	LAO or normal alpha olefins (NAO)	9.74	0.44
maleic anhydride	MA	5.75	0.26
melamine		4.28	0.19
methyl acrylate	methyl-A	5.39	0.24
methyl chloroform		6.37	0.29
methyl isobutyl ketone	MIBK	23.65	1.07
methyl methacrylate	MMA	14.75	0.67
methylene chloride		10.33	0.47
monochlorobenzene		10.12	0.46
monoethanolamine	MEA	5.96	0.27
monoisopropanolamine		11.74	0.53
nickel oxide		7.03	0.32
normal butyl acetate	butac	4.47	0.20
normal propyl acetate		3.73	0.17
nylon 6/6	nylon 6,6	8.67	0.39
ortho-dichlorobenzene		10.35	0.47
ortho-nitrochlorobenzene		7.49	0.34
para-dichlorobenzene		10.35	0.47
para-nitrochlorobenzene		7.49	0.34
para-nitrophenol		8.59	0.39
pentaerythritol		3.86	0.18
perchloroethylene	PCE	10.89	0.49
phenol		12.47	0.57
phenolic resins		9.86	0.45
phosphorous pentasulfide		2.49	0.11
phosphorous trichloride		6.21	0.28
phthalic anhydride	PA	7.01	0.32
poly 1,4 butyleneterephthalate	polybutylene terephthalate (PBT)	7.21	0.33
poly(propylene)glycol		10.38	0.47
poly(propylene/ethylene)glycol		8.84	0.40
poly(propyleneoxy)sucrose		2.04	0.09
poly(propyleneoxy/ethyleneoxy)sucrose		2.57	0.12
polyalphaolefins	PAO	11.37	0.52
polybutadiene	polybutadiene rubber (PBR)	9.74	0.44
polybutene		9.74	0.44
polybutylene	PB	9.74	0.44
polybutylene/ethylene		9.74	0.44
polycarbonate	PC	10.84	0.49
polyethylene resins, total	PE	9.74	0.44
polyethylene terephthalate pellets	PET	6.82	0.31
polypropylene	PP	9.74	0.44
polypropylene resins	PP	9.74	0.44
polystyrene homopolymer resins	PS	9.93	0.45
polyvinylchloride resins	PVC	7.46	0.34
propanol		5.47	0.25
propylene glycol	PG	10.38	0.47
propylene oxide	PO	13.6	0.62
styrene		9.93	0.45
styrene-butadiene, latex		9.84	0.45
synthetic linear fatty alcohol ethoxylates		7.12	0.32
synthetic linear fatty alcohols		9.29	0.42
terephthalic acid	purified terephthalic acid (PTA)	6.23	0.28
tetrabromobisphenol-A		14.79	0.67
tetrachlorophthalic anhydride		8.95	0.41
tetrahydrofuran	THF	5.78	0.26
toluene diisocyanate	TDI	10.85	0.49
toluenediamine		9.18	0.42
trichloroethylene	TCE	10.79	0.49
triethanolamine	TEA	6.04	0.27
triisopropanolamine		12.84	0.58
trimethylolpropane		4.63	0.21
urea		3.01	0.14
vinyl acetate	vinyl acetate monomer (VAM)	3.83	0.17
vinyl chloride	vinyl chloride monomer (VCM)	7.46	0.34

Prior to the June list, the Internal Revenue Service (IRS) had published two earlier lists that contained a total of 151 taxable substances that, if imported, could be subject to the Superfund tax.

Unlike the more recent list that was published in June. these two earlier lists do not include tax rates.

Some of the substances in the two earlier lists are included in the more recent June list. Others substances in the earlier lists are not in the June list. In addition, some substances in the June list are not included in the earlier lists.

The following table shows the 151 taxable substances that were in the two lists.

Chemical	Alias
1,4 butanediol	BDO
1,3-butylene glycol	BG
1,5,9- cyclododecatriene
2-ethyl hexanol	2-EH
2-ethylhexyl acrylate
2,2,4-trimethyl- 1,3-pentanediol diisobutyrate
2,2,4-trimethyl- 1,3-pentanediol monoisobutyrate
acetic acid
acetylene black
adipic acid
adiponitrile	ADN
allyl chloride
alpha- methylstyrene
aniline
benzaldehyde
benzoic acid
bisphenol-A	BPA
butanol	normal butanol or NBA
butyl acrylate	butyl-a
butyl benzyl phthalate
chlorinated polyethylene
cyclododecanol
decabromodiphenyl oxide
di-2 ethyl hexyl phthalate
di-n-hexyl adipate
diethanolamine	DEA
diglycidyl ether of bisphenol-A
diisopropano- lamine
dimethyl terephthalate	DMT
dimethyl-2, 6-naphthalene dicarboxylate
diphenyl oxide
diphenylamine
epichlorohydrin	EPC
ethyl acetate	etac
ethyl acrylate	ethyl-A
ethyl chloride
ethylene dibromide
ethylenebistetra- bromo- phthalimide
formic acid
glycerine
hexabromocyclod odecane
hexamethylenedia mine
isobutyl acetate
isopropyl acetate
linear alpha olefins	LAOs or normal alpha olefins (NAOs)
methyl acrylate	methyl-A
methyl chloroform
methyl isobutyl ketone	MIBK
methyl methacrylate	MMA
monochloro- benzene
monoethanolamine	MEA
monoisopro- panolamine
normal butyl acetate	butac
normal propyl acetate
nylon 6/6	nylon 6,6
ortho- dichlorobenzene
ortho-nitrochloro- benzene
paraformaldehyde
para- dichlorobenzene
para-nitrochloro- benzene
para-nitrophenol
pentaerythritol
perchloroethylene	PCE
phenol
phosphorous pentasulfide
phosphorous trichloride
poly 1,4 butylenetere-phthalate	polybutylene terephthalate (PBT)
poly (69/31 ethylene/ cyclohexylene- dimethylene terephthalate)
poly (96.5/3.5 ethylene/ cyclohexylene-dimethylene terephthalate)
poly (98.5/1.5 ethylene/ cyclohexylene-dimethylene terephthalate)
poly(ethyleneoxy) glycerol
poly(propylene) glycol
poly(propylene/ ethylene) glycol
poly(propyleneoxy) glycerol
poly(propyleneoxy)s ucrose
poly(propyleneoxy/ ethyleneoxy) benzenediamine
poly(propyleneoxy/ ethyleneoxy)diamine
poly(propyleneoxy/ ethyleneoxy)glycerol
poly(propyleneoxy/ ethyleneoxy)sucrose
polyalphaolefins	PAOs
polybutene
polybutylene	PB
polybutylene/ ethylene
polycarbonate	PC
polyethylene terephthalate pellets	PET
propanol	n-propanol
sodium nitriolotriacetate monohydrate
synthetic linear fatty alcohols
synthetic linear fatty alcohol ethoxylates
terephthalic acid	purified terephthalic acid (PTA)
tetrabromo- bisphenol-A
tetrachloro-phthalic anhydride
tetrahydrofuran	THF
texanol benzyl phthalate
toluene diisocyanate	TDI
toluenediamine
trichloroethylene	TCE
triethanolamine	TEA
triisopropanolamine
trimethylolpropane
vinyl acetate	vinyl acetate monomer (VAM)
acetone
acrylic and methacrylic acid resins
acrylonitrile	ACN
ammonium nitrate	AN
carbon tetrachloride
chloroform
chromic acid
cumene
cyclohexane	CX
ethyl alcohol for nonbeverage use	ethanol
ethylbenzene	EB
ethylene dichloride	EDC
ethylene glycol	EG
ethylene oxide	EO
ethyl methyl ketone	methyl ethyl ketone (MEK)
ferrochrome ov 3 pct. carbon
ferrochromium nov 3 pct
ferronickel
formaldehyde
hydrogen peroxide
isophtalic acid
isopropyl alcohol	isopropanol (IPA)
maleic anhydride	MA
melamine
methanol
methylene chloride
nickel oxide
nickel powders
nickel waste and scrap
phenolic resins
phthalic anhydride	PA
polybutadiene	polybutadiene rubber (PBR)
polypropylene resins	PP
polystyrene homopolymer resins	PS
polyethylene resins, total	PE
polypropylene	PP
polystyrene resins and copolymers	PS
polyvinylchloride resins	PVC
propylene glycol	PG
propylene oxide	PO
styrene
styrene-butadiene, latex
styrene-butadiene, snpf
synthetic rubber, not containing fillers
unwrought nickel
urea
vinyl chloride	VCM
vinyl resins
vinyl resins, nspf
wrought nickel rods and wire

The government could add or remove substances from this list. Companies can also request that the IRS add or remove substances from the list.

Substances could be added to the taxable list if they contain at least 20% of the 42 taxable chemicals. The tax rate would depend on the percent of the taxable chemicals contained by the substance, either by weight or by value, according to the IRS.

For example, a short ton of a substance that contains 20% propylene would be added to the list.

If an imported substance contains more than 20% of two or more of the 42 taxable chemicals, then it could fall under the tax. For example, an import that contains 10% benzene and 10% ethylene could be added because it contains 20% of the taxable chemicals.

If companies do not comply with the substance tax, then they will pay a default rate of 10% of the value of the substance, the IRS said.

The IRS published a list of frequently asked questions (FAQs) that can be found here.