Bipartisan Infrastructure Bill Would Reinstate Superfund Tax to Pay for Proposal

The Biden Administration, along with a bipartisan group of U.S. Senators, unveiled a new infrastructure agreement called the Bipartisan Infrastructure Framework. The proposal contains $579 billion in spending on physical infrastructure improvements.  To help pay for this proposal, one provision in the agreement would reinstate the Superfund Tax, which would target all chemical manufacturers regardless of whether there is a connection to a Superfund site. U.S. chemical manufacturers subject to the tax would most likely pass on the costs on to their customers, including suppliers and applicators in the surface finishing industry.

The proposal would place an excise tax on the manufacture, production or import of 42 chemicals (including organics and metals such as cadmium, chromium, cobalt, lead, nickel and zinc), and set the value of the tax at double the amount of the chemicals used in 1995. The full list of 42 chemicals from 1995 can be found at https://uscode.house.gov/view.xhtml?req=(title:26%20section:4661%20edition:prelim), and exemptions (also from 1995) can be found at https://uscode.house.gov/view.xhtml?hl=false&edition=prelim&req=granuleid%3AUSC-prelim-title26-section4662&num=0&saved=%7CKHRpdGxlOjI2IHNlY3Rpb246NDY2MSBlZGl0aW9uOnByZWxpbSk%3D%7C%7C%7C0%7Cfalse%7Cprelim. 

Senate and White House staff are currently drafting the text for the bipartisan infrastructure plan and hope to have draft text soon. It is possible that chemicals could be added to the list, e.g., certain PFAS compounds.  The fate of this proposal will depend on how Congress and the White House ultimately decide to approach an infrastructure deal.  NASF will be working with industry trade groups, including the American Chemistry Council (ACC) the U.S. Chamber of Commerce and others, to oppose the reinstatement of these taxes.  If you have any questions or would like additional information on this proposal, please contact Jeff Hannapel with NASF at jhannapel@thepolicygroup.com.  

This update is courtesy of the National Association for Surface Finishing (NASF). For more information or to become a member, visit nasf.org.