I 

117TH CONGRESS 

1ST SESSION H. R. 2703 

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

the Superfund. 

IN THE HOUSE OF REPRESENTATIVES 

APRIL 20, 2021 

Mr. PALLONE (for himself, Mr. BLUMENAUER, Mr. PASCRELL, and Mr. 

MCEACHIN) 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) HAZARDOUS SUBSTANCE SUPERFUND FINANC8 ING RATE.— 


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1 (1) IN GENERAL.—Section 4611(e) of the Inter2 nal Revenue Code of 1986 is amended to read as fol3 lows: 

4 ‘‘(e) APPLICATION OF HAZARDOUS SUBSTANCE

5 SUPERFUND FINANCING RATE.—The Hazardous Sub6 stance Superfund financing rate under this section shall 

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

8 1996, and after the date of the enactment of this sub9 section and before January 1, 2026.’’. 

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

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

12 of such Code is amended by striking ‘‘9.7 

13 cents’’ and inserting ‘‘16.3 cents’’. 

14 (B) CONTINUED ADJUSTMENT FOR INFLA15 TION.—Section 4611(c) of such Code is amend16 ed by adding at the end the following new para17 graph: 

18 ‘‘(3) INFLATION ADJUSTMENT.— 

19 ‘‘(A) IN GENERAL.—In the case of a cal20 endar year beginning after 2021, the 16.3 cents 

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

22 by an amount equal to— 

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

24 ‘‘(ii) the cost-of-living adjustment de25 termined under section 1(f)(3) for such 


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1 calendar year, determined by substituting 

2 ‘calendar year 2020’ for ‘calendar year 

3 2016’ in subparagraph (A)(ii) thereof. 

4 ‘‘(B) ROUNDING.—If any amount as ad5 justed under subparagraph (A) is not a multiple 

6 of 0.1 cents, such amount shall be rounded to 

7 the nearest multiple of 0.1 cents.’’. 

8 (3) TECHNICAL AMENDMENTS.— 

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

10 amended— 

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

12 paragraph (1)(A), 

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

14 paragraph (1)(B), and 

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

16 in the heading. 

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

18 amended— 

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

20 oil, as the case may be’’ in the text and in21 serting ‘‘the crude oil’’, and 

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

23 heading. 


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1 (b) ADJUSTMENT OF EXCISE TAX ON CERTAIN

2 CHEMICALS FOR INFLATION.—Section 4661(b) of such 

3 Code is amended to read as follows: 

4 ‘‘(b) AMOUNT OF TAX.— 

5 ‘‘(1) IN GENERAL.—The amount of the tax im6 posed by subsection (a) shall be determined in ac7 cordance with the following table: 

‘‘In the case of: The tax is the following 

amount per ton: 

Acetylene $14.30

Benzene 14.30

Butane 14.30

Butylene 14.30

Butadiene 14.30

Ethylene 14.30

Methane 10.10

Naphthalene 14.30

Propylene 14.30

Toluene 14.30

Xylene 14.30

Ammonia 7.75

Antimony 13.06

Antimony trioxide 11.01

Arsenic 13.06

Arsenic trioxide 10.01

Barium sulfide 6.75

Bromine 13.06

Cadmium 13.06

Chlorine 7.93

Chromium 13.06

Chromite 4.46

Potassium dichromate 4.96

Sodium dichromate 5.49

Cobalt 13.06

Cupric sulfate 5.49

Cupric oxide 10.54

Cuprous oxide 11.66

Hydrochloric acid 0.85

Hydrogen fluoride 12.42

Lead oxide 12.15

Mercury 13.06

Nickel 13.06

Phosphorus 13.06

Stannous chloride 8.37

Stannic chloride 6.22

Zinc chloride 6.52


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‘‘In the case of: The tax is the following 

amount per ton: 

Zinc sulfate 5.58

Potassium hydroxide 0.65

Sodium hydroxide 0.82

Sulfuric acid 0.76

Nitric acid 0.70. 

1 ‘‘(2) ADJUSTMENT FOR INFLATION.— 

2 ‘‘(A) IN GENERAL.—In the case of a cal3 endar year beginning after 2021, each of the 

4 amounts in the table in paragraph (1) shall be 

5 increased by an amount equal to— 

6 ‘‘(i) such amount, multiplied by 

7 ‘‘(ii) the cost-of-living adjustment de8 termined under section 1(f)(3) for the cal9 endar year, determined by substituting 

10 ‘calendar year 2020’ for ‘calendar year 

11 2016’ in subparagraph (A)(ii) thereof. 

12 ‘‘(B) ROUNDING.—If any amount as ad13 justed under subparagraph (A) is not a multiple 

14 of $0.01, such amount shall be rounded to the 

15 next lowest multiple of $0.01.’’. 

16 (c) CORPORATE ENVIRONMENTAL INCOME TAX.— 

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

18 Revenue Code of 1986 is amended by adding at the 

19 end the following new part: 

20 ‘‘PART VIII—ENVIRONMENTAL TAX 

‘‘Sec. 59B. Environmental Tax. 


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1 ‘‘SEC. 59B. ENVIRONMENTAL TAX. 

2 ‘‘(a) IMPOSITION OF TAX.—In the case of a corpora3 tion, there is hereby imposed (in addition to any other tax 

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

5 the excess of— 

6 ‘‘(1) the modified environmental tax taxable in7 come of such corporation for the taxable year, over 

8 ‘‘(2) $3,130,000. 

9 ‘‘(b) MODIFIED ENVIRONMENTAL TAX TAXABLE IN10 COME.—For purposes of this section, the term ‘modified 

11 environmental tax taxable income’ means taxable income 

12 determined without regard to— 

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

14 under section 172, and 

15 ‘‘(2) the deduction allowed under section 

16 164(a)(5). 

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

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

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

20 part I of subchapter M applies, and 

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

22 part II of subchapter M applies. 

23 ‘‘(d) SPECIAL RULES.— 

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

25 of this section to taxable years of less than 12 


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1 months shall be in accordance with regulations pre2 scribed by the Secretary. 

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

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

5 ‘‘(e) INFLATION ADJUSTMENT.— 

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

7 year beginning after 2021, the $3,130,000 amount 

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

9 equal to— 

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

11 ‘‘(B) the cost-of-living adjustment deter12 mined under section 1(f)(3) for the calendar 

13 year in which the taxable year begins, deter14 mined by substituting ‘calendar year 2020’ for 

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

16 thereof. 

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

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

19 such amount shall be rounded to the nearest mul20 tiple of $10,000. 

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

22 section shall apply to taxable years beginning after the 

23 date of the enactment of this subsection and before Janu24 ary 1, 2027.’’. 

25 (2) CONFORMING AMENDMENTS.— 


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

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

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

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

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

6 new subparagraph: 

7 ‘‘(Z) section 59B (relating to environ8 mental tax).’’. 

9 (B) Section 164(a) of such Code is amend10 ed by adding at the end the following: 

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

12 59B.’’. 

13 (C) Section 275(a) of such Code is amend14 ed by adding at the end the following: ‘‘Para15 graph (1) shall not apply to the tax imposed by 

16 section 59B.’’. 

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

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

19 59A, or 59B’’. 

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

21 amended by inserting ‘‘and one dollar amount 

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

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

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


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

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

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

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

5 clause (ii) the following: 

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

7 over’’. 

8 (G) Section 6655 of such Code is amend9 ed— 

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

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

12 and modified taxable income’’ and insert13 ing ‘‘taxable income, modified taxable in14 come, and modified environmental tax tax15 able income’’, 

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

17 at the end the following new clause: 

18 ‘‘(iii) MODIFIED ENVIRONMENTAL

19 TAX TAXABLE INCOME.—The term ‘modi20 fied environmental tax taxable income’ has 

21 the meaning given to such term in section 

22 59B(b).’’, and 

23 (iii) in subsection (g)(1)(A), by strik24 ing ‘‘plus’’ at the end of clause (ii), by reVerDate Sep 11 2014 23:43 Jun 02, 2021 Jkt 019200 PO 00000 Frm 00009 Fmt 6652 Sfmt 6201 E:\BILLS\H2703.IH H2703

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1 designating clause (iii) as clause (iv), and 

2 by inserting after clause (ii) the following: 

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

4 plus’’. 

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

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

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

8 chapter 1 of such Code is amended by inserting 

9 after the item relating to part VII the following 

10 new item: 

‘‘PART VIII. ENVIRONMENTAL TAX’’. 

11 (d) EFFECTIVE DATES.— 

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

13 subsections (a) and (b) shall take effect on the date 

14 of the enactment of this Act. 

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

16 subsection (c) shall apply to taxable years beginning 

17 after the date of the enactment of this Act. 

Æ 


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