Superfund Polluter Pays Act

To amend the Internal Revenue Code of 1986 to extend the financing of the Superfund. 1. Short title This Act may be cited as the Superfund Polluter Pays Act 2. Extension of Superfund taxes (a) Hazardous Substance Superfund financing rate (1) In general Section 4611(e) (e) Application of hazardous substance superfund financing rate The Hazardous Substance Superfund financing rate under this section shall apply after December 31, 1986, and before January 1, 1996, and after the date of the enactment of this subsection and before January 1, 2026. . (2) Rate of tax adjusted for inflation (A) In general Section 4611(c)(2)(A) of such Code is amended by striking 9.7 cents 16.3 cents (B) Continued adjustment for inflation Section 4611(c) of such Code is amended by adding at the end the following new paragraph: (3) Inflation adjustment (A) In general In the case of a calendar year beginning after 2021, the 16.3 cents amount in paragraph (2)(A) shall be increased by an amount equal to— (i) such dollar amount, multiplied by (ii) the cost-of-living adjustment determined under section 1(f)(3) for such calendar year, determined by substituting calendar year 2020 calendar year 2016 (B) Rounding If any amount as adjusted under subparagraph (A) is not a multiple of 0.1 cents, such amount shall be rounded to the nearest multiple of 0.1 cents. . (3) Technical amendments (A) Section 4611(b) of such Code is amended— (i) by striking or exported from (ii) by striking or exportation (iii) by striking and exportation (B) Section 4611(d)(3) of such Code is amended— (i) by striking or exporting the crude oil, as the case may be the crude oil (ii) by striking or exports (b) Adjustment of excise tax on certain chemicals for inflation Section 4661(b) of such Code is amended to read as follows: (b) Amount of tax (1) In general The amount of the tax imposed by subsection (a) shall be determined in accordance 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 Zinc sulfate 5.58 Potassium hydroxide 0.65 Sodium hydroxide 0.82 Sulfuric acid 0.76 Nitric acid 0.70. (2) Adjustment for inflation (A) In general In the case of a calendar year beginning after 2021, each of the amounts in the table in paragraph (1) shall be increased by an amount equal to— (i) such amount, multiplied by (ii) the cost-of-living adjustment determined under section 1(f)(3) for the calendar year, determined by substituting calendar year 2020 calendar year 2016 (B) Rounding If any amount as adjusted under subparagraph (A) is not a multiple of $0.01, such amount shall be rounded to the next lowest multiple of $0.01. . (c) Corporate environmental income tax (1) Subchapter A of chapter 1 VIII Environmental Tax Sec. 59B. Environmental Tax. 59B. Environmental tax (a) Imposition of tax In the case of a corporation, there is hereby imposed (in addition to any other tax imposed by this subtitle) a tax equal to 0.12 percent of the excess of— (1) the modified environmental tax taxable income of such corporation for the taxable year, over (2) $3,130,000. (b) Modified environmental tax taxable income For purposes of this section, the term modified environmental tax taxable income (1) the net operating loss deduction allowable under section 172, and (2) the deduction allowed under section 164(a)(5). (c) Exception for RICs and REITs The tax imposed by subsection (a) shall not apply to— (1) a regulated investment company to which part I of subchapter M applies, and (2) a real estate investment trust to which part II of subchapter M applies. (d) Special rules (1) Short taxable years The application of this section to taxable years of less than 12 months shall be in accordance with regulations prescribed by the Secretary. (2) Section 15 not to apply Section 15 shall not apply to the tax imposed by this section. (e) Inflation adjustment (1) In general In the case of a taxable year beginning after 2021, the $3,130,000 amount in subsection (a)(2) shall be increased by an amount equal to— (A) such dollar amount, multiplied by (B) the cost-of-living adjustment determined under section 1(f)(3) for the calendar year in which the taxable year begins, determined by substituting calendar year 2020 calendar year 2016 (2) Rounding If any amount as adjusted under paragraph (1) is not a multiple of $10,000, such amount shall be rounded to the nearest multiple of $10,000. (f) Application of tax The tax imposed by this section shall apply to taxable years beginning after the date of the enactment of this subsection and before January 1, 2027. . (2) Conforming amendments (A) Paragraph (2) of section 26(b) of such Code is amended by striking and , and (Z) section 59B (relating to environmental tax). . (B) Section 164(a) of such Code is amended by adding at the end the following: (5) The environmental tax imposed by section 59B. . (C) Section 275(a) of such Code is amended by adding at the end the following: Paragraph (1) shall not apply to the tax imposed by section 59B. (D) Section 882(a)(1) of such Code is amended by striking or 59A , 59A, or 59B (E) Section 1561(a) of such Code is amended by inserting and one dollar amount in effect under section 59B(a)(2) for purposes of computing the tax imposed by section 59B under section 535(c)(2) and (3) (F) Section 6425(c)(1)(A) of such Code is amended by striking plus over plus (iii) the tax imposed by section 59B, over . (G) Section 6655 of such Code is amended— (i) in subsections (e)(2)(A)(i) and (e)(2)(B)(i), by striking taxable income and modified taxable income taxable income, modified taxable income, and modified environmental tax taxable income (ii) in subsection (e)(2)(B), by adding at the end the following new clause: (iii) Modified environmental tax taxable income The term modified environmental tax taxable income , and (iii) in subsection (g)(1)(A), by striking plus (iii) the tax imposed by section 59B, plus . (H) Section 9507(b)(1) of such Code is amended by inserting 59B, 4611 (I) The table of parts for subchapter A of chapter 1 of such Code is amended by inserting after the item relating to part VII the following new item: Part VIII. Environmental tax . (d) Effective dates (1) Excise taxes The amendments made by subsections (a) and (b) shall take effect on the date of the enactment of this Act. (2) Income tax The amendments made by subsection (c) shall apply to taxable years beginning after the date of the enactment of this Act.

Summary: Superfund Polluter Pays Act This bill reinstates and extends the Hazardous Substance Superfund Financing rate through 2025 and increases the rate to 16.3 cents a barrel, adjusted for inflation beginning after 2021. The bill imposes on corporations a 0.12% tax of the excess of the modified environmental tax taxable income of the corporation over $3.13 million.