WASHINGTON (Feb. 19, 2025) – The American Chemistry Council (ACC) issued the following statement from President and CEO Chris Jahn in response to reintroduction of the Chemical Tax Repeal Act by Senators Ted Cruz (R-Texas), John Barrasso (R-Wyo.), John Kennedy (R-La.), Mike Lee (R-Utah), and John Cornyn (R-Texas). The legislation would eliminate excise taxes imposed on 42 chemicals, critical minerals, and metallic elements by the Infrastructure Investment and Jobs Act of 2021.
“We welcome Senate reintroduction of the Chemical Tax Repeal Act and commend Senators Cruz, Barrasso, Kennedy, Lee, and Cornyn for their leadership on this key issue for America’s economy. Estimates by the Joint Committee on Taxation indicate that the excise taxes could result in a nearly $15 billion hit to the U.S. economy by the time they expire at the end of 2031.
“The taxes are affecting chemical supply chains and markets and continue to increase costs for consumers and businesses. An IRS hearing affirmed their impacts on industries including fertilizer, farming, energy production, and manufacturing.
“The tax burden is primarily falling on ethylene, propylene, benzene, chlorine, and xylene. These chemicals are building blocks for chemistries used in light vehicles, building and construction, business equipment, water delivery and purification, and more. Many of the affected items help advance priorities such as national defense, energy independence, modern healthcare, technology development, and innovation.
“The Chemical Tax Repeal Act (H.R. 640) was reintroduced by Representatives Beth Van Duyne (R-TX), Mike Carey (R-OH), Carol Miller (R-WV) and Darin LaHood (R-IL) on January 22, 2025. ACC analysis shows that repeal of the taxes could increase chemical industry output by more than $300 million annually. We urge additional lawmakers to join the legislation and look forward to swift passage by both chambers.”
