WASHINGTON (January 22, 2025) – The American Chemistry Council (ACC) issued the following statement from President and CEO Chris Jahn in response to House reintroduction of the Chemical Tax Repeal Act by Representatives Beth Van Duyne (R-TX), Mike Carey (R-OH), Carol Miller (R-WV) and Darin LaHood (R-IL).
“We welcome House reintroduction of the Chemical Tax Repeal Act and commend House Ways and Means Committee members Van Duyne, Carey, Miller and LaHood for addressing an issue with far-reaching impacts for the U.S. economy. Estimates by the Joint Committee on Taxation indicate these taxes could result in a nearly $15 billion hit to the economy by the time they expire at the end of 2031.
“The Infrastructure Investment and Jobs Act of 2021 reinstated Superfund excise taxes on 42 chemicals, critical minerals, and metallic elements – materials used in manufactured goods. These misguided taxes affect chemical supply chains and markets and continue to raise costs for consumers and businesses. An IRS hearing affirmed their broad impacts on industries including fertilizer, farming, energy production, and manufacturing.
“The burden of the taxes is primarily falling on ethylene, propylene, benzene, chlorine, and xylene. These chemicals are basic building blocks for chemistries used in light vehicles, building and construction, business equipment, water delivery and purification, and many other final products. As a result of the taxes, U.S. manufacturing competitiveness is undercut by countries like China.
“Superfund excise taxes single out the chemical industry at a time when supply chain challenges and restrictions imposed by the previous administration pose significant challenges for the business of chemistry and our ability to create products that are key to advancing national priorities including national defense, energy independence, modern healthcare, technology and innovation.
“The benefits of action are clear: Repeal of the Superfund tax could increase chemical industry output by more than $300 million annually, ACC analysis shows. We look forward to additional lawmakers joining the Chemical Tax Repeal Act and urge swift consideration to move it forward.”
