All Knowledge & Insights By Date

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: Comments on the petitions are due June 2, 2025. More information on the Superfund excise tax on chemicals is available in our July 13, 2022, memorandum, “Superfund Tax on Chemicals: What You Need to Know to Comply” and our May 19, 2022, memorandum, “Reinstated Superfund Excise...

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: More information on the Superfund excise tax on chemicals is available in our April 4, 2023, memorandum, “IRS Proposes Regulations Regarding Superfund Tax on Chemicals,” our July 13, 2022, memorandum, “Superfund Tax on Chemicals: What You Need to Know to Comply,” and our May 19, 2022, memorandum, “Reinstated Superfund...

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...

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: Comments and requests for a public hearing are due November 4, 2024. More information on the Superfund excise tax on chemicals is available in our April 4, 2023, memorandum, “IRS Proposes Regulations Regarding Superfund Tax on Chemicals,” our July 13, 2022, memorandum, “Superfund Tax on Chemicals: What You Need...

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...

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...

On May 31, 2024, the Department of the Treasury (Treasury Department) and the Internal Revenue Service (IRS) issued Notice 2024-49 for the Clean Fuel Production Credit. The Inflation Reduction Act allows a credit for the production of clean transportation fuels beginning on January 1, 2025. For purposes of the Clean Fuel Production Credit, transportation fuel is divided into two broad categories of fuel: sustainable aviation fuel (SAF) and non-SAF transportation fuel. According to the IRS,...

The Internal Revenue Service (IRS) published a notice of determination on May 31, 2024, that the list of taxable substances is modified to include polyoxymethylene. 89 Fed. Reg. 47238. As reported in our December 29, 2022, blog item, the IRS announced in December 2022 that it received a petition requesting the addition of polyoxymethylene to the list of taxable substances under Section 4672(a) of the Internal Revenue Code. Celanese Ltd., an exporter of polyoxymethylene, submitted...

The Internal Revenue Service (IRS) announced on February 27, 2024, that it received a petition requested that iso-butanol (also known as isobutanol, iso butyl alcohol, 2-methyl propan-1-ol, or 2-methyl-1-propanol) be added to the list of taxable substances under Section 4672(a) of the Internal Revenue Code. 89 Fed. Reg. 14558. OQ Chemicals Corporation, an exporter of iso-butanol, filed the petition. The notice states: According to the petition, iso-butanol is an isomer of n-butanol. Iso-butanol...

On December 14, 2023, the Treasury Department and the Internal Revenue Service (IRS) issued Notice 2024-06 for the new Sustainable Aviation Fuel (SAF) credit created by the Inflation Reduction Act of 2022 (IRA). According to the IRS’s December 15, 2023, press release, the SAF credit applies to a qualified fuel mixture containing SAF for certain sales or uses in calendar years 2023 and 2024. The SAF credit is $1.25 for each gallon of SAF in...

The Internal Revenue Service (IRS) announced on July 17, 2023, that it received a petition requesting that methyl ethyl ketoxime (MEKO) be added to the list of taxable substances under Section 4672(a) of the Internal Revenue Code. 88 Fed. Reg. 45454. The petitioner is AdvanSix Inc., an exporter of MEKO. The notice includes the following description of the petition: According to the petition, MEKO is a clear liquid and a high-efficiency, anti-skinning agent that is used for...

On March 29, 2023, the Internal Revenue Service (IRS) published a notice of proposed rulemaking (NPRM) relating to the Superfund excise taxes imposed on certain chemicals and certain imported substances, effective July 1, 2022. 88 Fed. Reg. 18446. There are two separate Superfund chemical excise taxes: a tax on the sale or use of “taxable chemicals” and a tax on the sale or use of imported “taxable substances.” The NPRM contains proposed regulations under Sections 4661,...

The Internal Revenue Service (IRS) announced on December 30, 2022, that it received a petition requesting the addition of polyphenylene sulfide to the list of taxable substances under Section 4672(a) of the Internal Revenue Code. 87 Fed. Reg. 80579. The petitioner is Celanese Ltd., an exporter of polyphenylene sulfide. According to the petition, “polyphenylene sulfide is a high-performance thermoplastic, has high heat and chemical resistance, and is used in applications such as filters,...

The Internal Revenue Service (IRS) announced on December 28, 2022, that it received a petition requesting the addition of polyoxymethylene to the list of taxable substances under Section 4672(a) of the Internal Revenue Code. 87 Fed. Reg. 79938. The petitioner is Celanese Ltd., an exporter of polyoxymethylene. According to the petition, “polyoxymethylene is an engineering thermoplastic used in precision parts requiring high stiffness, low friction, and excellent dimensional stability. It...

The Internal Revenue Service announced on June 24, 2022, that it has posted frequently asked questions (FAQ) on the Superfund chemical excise tax. The FAQs detail what the Superfund chemical excise tax is, how the tax is computed, and who may be liable for the tax. The Superfund chemical taxes will be reported on Form 720, Quarterly Federal Excise Tax Return, and Form 6627, Environmental Taxes. The excise taxes were reinstated beginning on July 1, 2022, under...