I 

116TH CONGRESS 

1ST SESSION H. R. 5101 

To amend the Internal Revenue Code of 1986 to extend the financing of 

the Superfund. 

IN THE HOUSE OF REPRESENTATIVES 

NOVEMBER 14, 2019 

Mr. PALLONE (for himself and Mr. PASCRELL) introduced the following bill; 

which was referred to the Committee on Ways and Means 

A BILL 

To amend the Internal Revenue Code of 1986 to extend 

the financing of the Superfund. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Superfund Polluter 

5 Pays Act’’. 

6 SEC. 2. EXTENSION OF SUPERFUND TAXES. 

7 (a) EXCISE TAXES.— 

8 (1) IN GENERAL.—Section 4611(e) of the Inter9 nal Revenue Code of 1986 is amended to read as fol10 lows: 


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1 ‘‘(e) APPLICATION OF HAZARDOUS SUBSTANCE

2 SUPERFUND FINANCING RATE.—The Hazardous Sub3 stance Superfund financing rate under this section shall 

4 apply after December 31, 1986, and before January 1, 

5 1996, and after the date of the enactment of this sub6 section and before January 1, 2024.’’. 

7 (2) RATE OF TAX ADJUSTED FOR INFLATION.— 

8 (A) IN GENERAL.—Section 4611(c)(2)(A) 

9 of such Code is amended by striking ‘‘9.7 

10 cents’’ and inserting ‘‘16.3 cents’’. 

11 (B) CONTINUED ADJUSTMENT FOR INFLA12 TION.—Section 4611(c) of such Code is amend13 ed by adding at the end the following new para14 graph: 

15 ‘‘(3) INFLATION ADJUSTMENT.— 

16 ‘‘(A) IN GENERAL.—In the case of a cal17 endar year beginning after 2019, the 16.3 cents 

18 amount in paragraph (2)(A) shall be increased 

19 by an amount equal to— 

20 ‘‘(i) such dollar amount, multiplied by 

21 ‘‘(ii) the cost-of-living adjustment de22 termined under section 1(f)(3) for such 

23 calendar year, determined by substituting 

24 ‘calendar year 2018’ for ‘calendar year 

25 2016’ in subparagraph (A)(ii) thereof. 


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1 ‘‘(B) ROUNDING.—If any amount as ad2 justed under subparagraph (A) is not a multiple 

3 of 0.1 cents, such amount shall be rounded to 

4 the nearest multiple of 0.1 cents.’’. 

5 (3) TECHNICAL AMENDMENTS.— 

6 (A) Section 4611(b) of such Code is 

7 amended— 

8 (i) by striking ‘‘or exported from’’ in 

9 paragraph (1)(A), 

10 (ii) by striking ‘‘or exportation’’ in 

11 paragraph (1)(B), and 

12 (iii) by striking ‘‘AND EXPORTATION’’ 

13 in the heading. 

14 (B) Section 4611(d)(3) of such Code is 

15 amended— 

16 (i) by striking ‘‘or exporting the crude 

17 oil, as the case may be’’ in the text and in18 serting ‘‘the crude oil’’, and 

19 (ii) by striking ‘‘OR EXPORTS’’ in the 

20 heading. 

21 (b) CORPORATE ENVIRONMENTAL INCOME TAX.— 

22 (1) Subchapter A of chapter 1 of the Internal 

23 Revenue Code of 1986 is amended by adding at the 

24 end the following new part: 


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1 ‘‘PART VIII—ENVIRONMENTAL TAX 

‘‘Sec. 59B. Environmental Tax. 

2 ‘‘SEC. 59B. ENVIRONMENTAL TAX. 

3 ‘‘(a) IMPOSITION OF TAX.—In the case of a corpora4 tion, there is hereby imposed (in addition to any other tax 

5 imposed by this subtitle) a tax equal to 0.12 percent of 

6 the excess of— 

7 ‘‘(1) the modified environmental tax taxable in8 come of such corporation for the taxable year, over 

9 ‘‘(2) $3,130,000. 

10 ‘‘(b) MODIFIED ENVIRONMENTAL TAX TAXABLE IN11 COME.—For purposes of this section, the term ‘modified 

12 environmental tax taxable income’ means taxable income 

13 determined without regard to— 

14 ‘‘(1) the net operating loss deduction allowable 

15 under section 172, and 

16 ‘‘(2) the deduction allowed under section 

17 164(a)(5). 

18 ‘‘(c) EXCEPTION FOR RICS AND REITS.—The tax 

19 imposed by subsection (a) shall not apply to— 

20 ‘‘(1) a regulated investment company to which 

21 part I of subchapter M applies, and 

22 ‘‘(2) a real estate investment trust to which 

23 part II of subchapter M applies. 

24 ‘‘(d) SPECIAL RULES.— 


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1 ‘‘(1) SHORT TAXABLE YEARS.—The application 

2 of this section to taxable years of less than 12 

3 months shall be in accordance with regulations pre4 scribed by the Secretary. 

5 ‘‘(2) SECTION 15 NOT TO APPLY.—Section 15 

6 shall not apply to the tax imposed by this section. 

7 ‘‘(e) INFLATION ADJUSTMENT.— 

8 ‘‘(1) IN GENERAL.—In the case of a taxable 

9 year beginning after 2019, the $3,130,000 amount 

10 in subsection (a)(2) shall be increased by an amount 

11 equal to— 

12 ‘‘(A) such dollar amount, multiplied by 

13 ‘‘(B) the cost-of-living adjustment deter14 mined under section 1(f)(3) for the calendar 

15 year in which the taxable year begins, deter16 mined by substituting ‘calendar year 2018’ for 

17 ‘calendar year 2016’ in subparagraph (A)(ii) 

18 thereof. 

19 ‘‘(2) ROUNDING.—If any amount as adjusted 

20 under paragraph (1) is not a multiple of $10,000, 

21 such amount shall be rounded to the nearest mul22 tiple of $10,000. 

23 ‘‘(f) APPLICATION OF TAX.—The tax imposed by this 

24 section shall apply to taxable years beginning after the 


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1 date of the enactment of this subsection and before Janu2 ary 1, 2025.’’. 

3 (2) CONFORMING AMENDMENTS.— 

4 (A) Paragraph (2) of section 26(b) of such 

5 Code is amended by striking ‘‘and’’ at the end 

6 of subparagraph (X), by striking the period at 

7 the end of subparagraph (Y) and inserting ‘‘, 

8 and’’, and by adding at the end the following 

9 new subparagraph: 

10 ‘‘(Z) section 59B (relating to environ11 mental tax).’’. 

12 (B) Section 164(a) of such Code is amend13 ed by adding at the end the following: 

14 ‘‘(5) The environmental tax imposed by section 

15 59B.’’. 

16 (C) Section 275(a) of such Code is amend17 ed by adding at the end the following: ‘‘Para18 graph (1) shall not apply to the tax imposed by 

19 section 59B.’’. 

20 (D) Section 882(a)(1) of such Code is 

21 amended by striking ‘‘or 59A’’ and inserting ‘‘, 

22 59A, or 59B’’. 

23 (E) Section 1561(a) of such Code is 

24 amended by inserting ‘‘and one dollar amount 

25 in effect under section 59B(a)(2) for purposes 


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1 of computing the tax imposed by section 59B’’ 

2 after ‘‘under section 535(c)(2) and (3)’’. 

3 (F) Section 6425(c)(1)(A) of such Code is 

4 amended by striking ‘‘plus’’ at the end of clause 

5 (i), by striking ‘‘over’’ and inserting ‘‘plus’’ at 

6 the end of clause (ii), and by inserting after 

7 clause (ii) the following: 

8 ‘‘(iii) the tax imposed by section 59B, 

9 over’’. 

10 (G) Section 6655 of such Code is amend11 ed— 

12 (i) in subsections (e)(2)(A)(i) and 

13 (e)(2)(B)(i), by striking ‘‘taxable income 

14 and modified taxable income’’ and insert15 ing ‘‘taxable income, modified taxable in16 come, and modified environmental tax tax17 able income’’, 

18 (ii) in subsection (e)(2)(B), by adding 

19 at the end the following new clause: 

20 ‘‘(iii) MODIFIED ENVIRONMENTAL

21 TAX TAXABLE INCOME.—The term ‘modi22 fied environmental tax taxable income’ has 

23 the meaning given to such term in section 

24 59B(b).’’, and 


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1 (iii) in subsection (g)(1)(A), by strik2 ing ‘‘plus’’ at the end of clause (ii), by re3 designating clause (iii) as clause (iv), and 

4 by inserting after clause (ii) the following: 

5 ‘‘(iii) the tax imposed by section 59B, 

6 plus’’. 

7 (H) Section 9507(b)(1) of such Code is 

8 amended by inserting ‘‘59B,’’ before ‘‘4611’’. 

9 (I) The table of parts for subchapter A of 

10 chapter 1 of such Code is amended by inserting 

11 after the item relating to part VII the following 

12 new item: 

‘‘PART VIII. ENVIRONMENTAL TAX’’. 

13 (c) EFFECTIVE DATES.— 

14 (1) EXCISE TAXES.—The amendments made by 

15 subsection (a) shall take effect on the date of the en16 actment of this Act. 

17 (2) INCOME TAX.—The amendments made by 

18 subsection (b) shall apply to taxable years beginning 

19 after the date of the enactment of this Act. 

Æ 


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