The Internal Revenue Service (IRS) published a notice of determinations on June 26, 2026, that the list of taxable substances is modified to include the following two substances: chloro-isobutene-isoprene rubber and ethylene-propylene-dicyclopentadiene rubber. 91 Fed. Reg. 38778. Arlanxeo USA LLC and Arlanxeo Canada Inc., importers and exporters of the chemicals, submitted petitions requesting to add the chemicals to the list. The IRS states that according to the petition for...
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The Internal Revenue Service (IRS) announced on May 18, 2026, that it will hold a hearing on June 18, 2026, on the notice of filing to add methyl methacrylate-ethyl methacrylate-methacrylic acid copolymer in a styrene solution to the list of taxable substances. 91 Fed. Reg. 28759. The hearing will be limited to testimony about the notice of filing for methyl methacrylate-ethyl methacrylate-methacrylic acid copolymer in a styrene solution. According to the January 14, 2026, notice announcing that...
February 19, 2026
Treasury Department and IRS Issue Proposed Rule Regarding Section 45Z Clean Fuel Production Credit, Will Hold Public Hearing on May 28, 2026
The Department of the Treasury (Treasury Department) and the Internal Revenue Service (IRS) issued a proposed rule on February 4, 2026, regarding the clean fuel production credit enacted by the Inflation Reduction Act of 2022 and amended by the One, Big, Beautiful Bill Act (OBBBA). 91 Fed. Reg. 5160. The proposed regulations would provide rules for determining clean fuel production credits, including credit eligibility rules, emissions rates, and certification and registration requirements. In...
On August 4, 2025, the Internal Revenue Service (IRS) published a notice of determinations that modifies the list of taxable substances to include the following 21 substances: polyphenylene sulfide, cellulose acetate (degree of substitution = 1.5-2.0), 4,4′-isopropylidenediphenol-epichlorohydrin copolymer, nylon 6, caprolactam, methyl ethyl ketoxime, iso-butanol, diethylene glycol monomethyl ether, ethylene glycol phenyl ether, methoxytriglycol, propylene glycol methyl ether acetate, propylene...
April 16, 2025
Petitions Filed to Add Chemicals to List of Chemical Substances Subject to Superfund Excise Tax
On April 2 and April 3, 2025, the Internal Revenue Service (IRS) announced that petitions have been filed to add the following chemicals to the list of taxable substances: Polyisobutylene (90 Fed. Reg. 14521): Petition filed by TPC Group, Inc., an exporter of polyisobutylene; Acrylonitrile butadiene styrene (90 Fed. Reg. 14687): Petition filed by Trinseo LLC, an importer and exporter of acrylonitrile butadiene styrene; Acrylonitrile-butadiene rubber (90 Fed. Reg. 14684): Petition filed by...
December 4, 2024
Petitions Filed to Add Several Chemicals to List of Taxable Substances; Comments Due January 28, 2025
On November 29, 2024, the Internal Revenue Service (IRS) announced that petitions have been filed to add the following chemicals to the list of taxable substances: Di-isobutyl ketone (89 Fed. Reg. 94879): ALTIVIA Ketones & Additives, LLC, an exporter of di-isobutyl ketone, filed the petition. According to the petition, di-isobutyl ketone is an organic compound that is used in solvents; paints and coatings; automobile refinishing; and pharmaceuticals. Di-isobutyl ketone is made from...
November 2, 2024
Treasury Department and IRS Issue Guidance for SAF Credit
On October 18, 2024, the U.S. Department of the Treasury (Treasury Department) and the Internal Revenue Service (IRS) issued Notice 2024-74 for the Sustainable Aviation Fuel (SAF) credit created by the Inflation Reduction Act (IRA). According to the IRS’ October 18, 2024, press release, the SAF credit ranges from $1.25 to $1.75 for each gallon of SAF in a qualified mixture. To qualify for the credit, the SAF must have a minimum reduction of 50 percent in lifecycle greenhouse gas (GHG)...
September 11, 2024
Petitions Filed to Add Several Chemicals to List of Taxable Substances; Comments Due November 4, 2024
On September 3, 2024, the Internal Revenue Service (IRS) announced that petitions have been filed to add the following chemicals to the list of taxable substances: Diethylene Glycol Monomethyl Ether (89 Fed. Reg. 71788): The Dow Chemical Company, an exporter of diethylene glycol monomethyl ether, filed the petition. According to the petition, diethylene glycol monomethyl ether is an ethylene-based glycol ether solvent. Diethylene glycol monomethyl ether is a liquid used in a variety of...
August 16, 2024
IRS Announces Correction to Petition to Add Nylon 6 to List of Chemical Substances Subject to Superfund Excise Tax
The Internal Revenue Service (IRS) announced on August 14, 2024, a correction to the stoichiometric material consumption equation in the notice of filing for the nylon 6 petition that was published in the February 22, 2024, Federal Register. 89 Fed. Reg. 66175. According to the notice, after the comment period for the original notice closed, an error was discovered in the stoichiometric material consumption equation for nylon 6, and the petitioner subsequently provided a corrected petition....
On July 10, 2024, the Internal Revenue Service (IRS) announced that it issued frequently asked questions (FAQ) in Fact Sheet 2024-25 related to which entities must apply for registration for the Clean Fuel Production Credit. As reported in our June 10, 2024, blog item, the Inflation Reduction Act allows a credit for the production of clean transportation fuels beginning on January 1, 2025. To claim a Clean Fuel Production Credit, the taxpayer must be registered as a producer of clean fuel at the...