On March 29, 2023, the Internal Revenue Service (IRS) published a notice of proposed rulemaking (NPRM) relating to the Superfund excise taxes imposed on certain chemicals and certain imported substances, effective July 1, 2022. 88 Fed. Reg. 18446. There are two separate Superfund chemical excise taxes: a tax on the sale or use of “taxable chemicals” and a tax on the sale or use of imported “taxable substances.” The NPRM contains proposed regulations under Sections 4661, 4662, 4671, and 4672 of the Internal Revenue Code (Code) to amend the Environmental Tax Regulations (26 C.F.R. Part 52). The NPRM states that Section 4661(a) imposes an excise tax on the sale or use of “taxable chemicals” by manufacturers, producers, or importers, and that Section 4662 provides definitions and special rules for applying the Section 4661 tax. Section 4671(a) imposes an excise tax on the sale or use of “taxable substances” by importers, and Section 4672 provides definitions and special rules for applying the Section 4671 tax. The NPRM states that the proposed regulations provide guidance on the application of the reinstated Superfund chemical taxes. The proposed regulations affect manufacturers, producers, and importers that sell or use taxable chemicals and importers that sell or use taxable substances. Comments on the NRPM and requests for a public hearing are due May 30, 2023. For more information, please read the full memorandum.
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