After more than 25 years, two excise taxes on chemicals and imported hazardous substances were reinstated in the Infrastructure Investment and Jobs Act (Pub. L. 117-58), effective July 1, 2022. A third excise tax on crude oil and petroleum products was reinstated in the Inflation Reduction Act (Pub. L. 117-169), effective January 1, 2023. Companies should carefully review their operations to determine the impact, if any, of these taxes.
The Infrastructure Investment and Jobs Act (Pub.L. 117–58), which was signed into law on November 15, 2021, reinstated the Chemicals Superfund Tax and the Hazardous Substances Tax at twice the prior rates through 2031.
The Inflation Reduction Act (Pub.L. 117-169), which was signed into law on August 16, 2022, reinstated the Petroleum Superfund Tax at a rate of 16.4 cents per barrel.
The Joint Committee on Taxation estimates these excise taxes combined would increase revenues by over $52 billion over a 10-year period.