Superfund Polluter Pays Act

I 117TH CONGRESS 1ST SESSION H. R. 2703 To amend the Internal Revenue Code of 1986 to extend the financing of the Superfund. IN THE HOUSE OF REPRESENTATIVES APRIL 20, 2021 Mr. PALLONE (for himself, Mr. BLUMENAUER, Mr. PASCRELL, and Mr. MCEACHIN) introduced the following bill; which was referred to the Com- mittee on Ways and Means A BILL To amend the Internal Revenue Code of 1986 to extend the financing of the Superfund. Be it enacted by the Senate and House of Representa- 1 tives of the United States of America in Congress assembled, 2 SECTION 1. SHORT TITLE. 3 This Act may be cited as the ‘‘Superfund Polluter 4 Pays Act’’. 5 SEC. 2. EXTENSION OF SUPERFUND TAXES. 6 (a) HAZARDOUS SUBSTANCE SUPERFUND FINANC- 7 ING RATE.— 8 VerDate Sep 11 2014 23:43 Jun 02, 2021 Jkt 019200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\H2703.IH H2703 kjohnson on DSK79L0C42PROD with BILLS 2 •HR 2703 IH (1) IN GENERAL.—Section 4611(e) of the Inter- 1 nal Revenue Code of 1986 is amended to read as fol- 2 lows: 3 ‘‘(e) APPLICATION OF HAZARDOUS SUBSTANCE 4 SUPERFUND FINANCING RATE.—The Hazardous Sub- 5 stance Superfund financing rate under this section shall 6 apply after December 31, 1986, and before January 1, 7 1996, and after the date of the enactment of this sub- 8 section and before January 1, 2026.’’. 9 (2) RATE OF TAX ADJUSTED FOR INFLATION.— 10 (A) IN GENERAL.—Section 4611(c)(2)(A) 11 of such Code is amended by striking ‘‘9.7 12 cents’’ and inserting ‘‘16.3 cents’’. 13 (B) CONTINUED ADJUSTMENT FOR INFLA- 14 TION.—Section 4611(c) of such Code is amend- 15 ed by adding at the end the following new para- 16 graph: 17 ‘‘(3) INFLATION ADJUSTMENT.— 18 ‘‘(A) IN GENERAL.—In the case of a cal- 19 endar year beginning after 2021, the 16.3 cents 20 amount in paragraph (2)(A) shall be increased 21 by an amount equal to— 22 ‘‘(i) such dollar amount, multiplied by 23 ‘‘(ii) the cost-of-living adjustment de- 24 termined under section 1(f)(3) for such 25 VerDate Sep 11 2014 23:43 Jun 02, 2021 Jkt 019200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\H2703.IH H2703 kjohnson on DSK79L0C42PROD with BILLS 3 •HR 2703 IH calendar year, determined by substituting 1 ‘calendar year 2020’ for ‘calendar year 2 2016’ in subparagraph (A)(ii) thereof. 3 ‘‘(B) ROUNDING.—If any amount as ad- 4 justed under subparagraph (A) is not a multiple 5 of 0.1 cents, such amount shall be rounded to 6 the nearest multiple of 0.1 cents.’’. 7 (3) TECHNICAL AMENDMENTS.— 8 (A) Section 4611(b) of such Code is 9 amended— 10 (i) by striking ‘‘or exported from’’ in 11 paragraph (1)(A), 12 (ii) by striking ‘‘or exportation’’ in 13 paragraph (1)(B), and 14 (iii) by striking ‘‘AND EXPORTATION’’ 15 in the heading. 16 (B) Section 4611(d)(3) of such Code is 17 amended— 18 (i) by striking ‘‘or exporting the crude 19 oil, as the case may be’’ in the text and in- 20 serting ‘‘the crude oil’’, and 21 (ii) by striking ‘‘OR EXPORTS’’ in the 22 heading. 23 VerDate Sep 11 2014 23:43 Jun 02, 2021 Jkt 019200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\H2703.IH H2703 kjohnson on DSK79L0C42PROD with BILLS 4 •HR 2703 IH (b) ADJUSTMENT OF EXCISE TAX ON CERTAIN 1 CHEMICALS FOR INFLATION.—Section 4661(b) of such 2 Code is amended to read as follows: 3 ‘‘(b) AMOUNT OF TAX.— 4 ‘‘(1) IN GENERAL.—The amount of the tax im- 5 posed by subsection (a) shall be determined in ac- 6 cordance with the following table: 7 ‘‘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 VerDate Sep 11 2014 23:43 Jun 02, 2021 Jkt 019200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\H2703.IH H2703 kjohnson on DSK79L0C42PROD with BILLS 5 •HR 2703 IH ‘‘In the case of: The tax is the following amount per ton: Zinc sulfate 5.58 Potassium hydroxide 0.65 Sodium hydroxide 0.82 Sulfuric acid 0.76 Nitric acid 0.70. ‘‘(2) ADJUSTMENT FOR INFLATION.— 1 ‘‘(A) IN GENERAL.—In the case of a cal- 2 endar year beginning after 2021, each of the 3 amounts in the table in paragraph (1) shall be 4 increased by an amount equal to— 5 ‘‘(i) such amount, multiplied by 6 ‘‘(ii) the cost-of-living adjustment de- 7 termined under section 1(f)(3) for the cal- 8 endar year, determined by substituting 9 ‘calendar year 2020’ for ‘calendar year 10 2016’ in subparagraph (A)(ii) thereof. 11 ‘‘(B) ROUNDING.—If any amount as ad- 12 justed under subparagraph (A) is not a multiple 13 of $0.01, such amount shall be rounded to the 14 next lowest multiple of $0.01.’’. 15 (c) CORPORATE ENVIRONMENTAL INCOME TAX.— 16 (1) Subchapter A of chapter 1 of the Internal 17 Revenue Code of 1986 is amended by adding at the 18 end the following new part: 19 ‘‘PART VIII—ENVIRONMENTAL TAX 20 ‘‘Sec. 59B. Environmental Tax. VerDate Sep 11 2014 23:43 Jun 02, 2021 Jkt 019200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6211 E:\BILLS\H2703.IH H2703 kjohnson on DSK79L0C42PROD with BILLS 6 •HR 2703 IH ‘‘SEC. 59B. ENVIRONMENTAL TAX. 1 ‘‘(a) IMPOSITION OF TAX.—In the case of a corpora- 2 tion, there is hereby imposed (in addition to any other tax 3 imposed by this subtitle) a tax equal to 0.12 percent of 4 the excess of— 5 ‘‘(1) the modified environmental tax taxable in- 6 come of such corporation for the taxable year, over 7 ‘‘(2) $3,130,000. 8 ‘‘(b) MODIFIED ENVIRONMENTAL TAX TAXABLE IN- 9 COME.—For purposes of this section, the term ‘modified 10 environmental tax taxable income’ means taxable income 11 determined without regard to— 12 ‘‘(1) the net operating loss deduction allowable 13 under section 172, and 14 ‘‘(2) the deduction allowed under section 15 164(a)(5). 16 ‘‘(c) EXCEPTION FOR RICS AND REITS.—The tax 17 imposed by subsection (a) shall not apply to— 18 ‘‘(1) a regulated investment company to which 19 part I of subchapter M applies, and 20 ‘‘(2) a real estate investment trust to which 21 part II of subchapter M applies. 22 ‘‘(d) SPECIAL RULES.— 23 ‘‘(1) SHORT TAXABLE YEARS.—The application 24 of this section to taxable years of less than 12 25 VerDate Sep 11 2014 23:43 Jun 02, 2021 Jkt 019200 PO 00000 Frm 00006 Fmt 6652 Sfmt 6201 E:\BILLS\H2703.IH H2703 kjohnson on DSK79L0C42PROD with BILLS 7 •HR 2703 IH months shall be in accordance with regulations pre- 1 scribed by the Secretary. 2 ‘‘(2) SECTION 15 NOT TO APPLY.—Section 15 3 shall not apply to the tax imposed by this section. 4 ‘‘(e) INFLATION ADJUSTMENT.— 5 ‘‘(1) IN GENERAL.—In the case of a taxable 6 year beginning after 2021, the $3,130,000 amount 7 in subsection (a)(2) shall be increased by an amount 8 equal to— 9 ‘‘(A) such dollar amount, multiplied by 10 ‘‘(B) the cost-of-living adjustment deter- 11 mined under section 1(f)(3) for the calendar 12 year in which the taxable year begins, deter- 13 mined by substituting ‘calendar year 2020’ for 14 ‘calendar year 2016’ in subparagraph (A)(ii) 15 thereof. 16 ‘‘(2) ROUNDING.—If any amount as adjusted 17 under paragraph (1) is not a multiple of $10,000, 18 such amount shall be rounded to the nearest mul- 19 tiple of $10,000. 20 ‘‘(f) APPLICATION OF TAX.—The tax imposed by this 21 section shall apply to taxable years beginning after the 22 date of the enactment of this subsection and before Janu- 23 ary 1, 2027.’’. 24 (2) CONFORMING AMENDMENTS.— 25 VerDate Sep 11 2014 23:43 Jun 02, 2021 Jkt 019200 PO 00000 Frm 00007 Fmt 6652 Sfmt 6201 E:\BILLS\H2703.IH H2703 kjohnson on DSK79L0C42PROD with BILLS 8 •HR 2703 IH (A) Paragraph (2) of section 26(b) of such 1 Code is amended by striking ‘‘and’’ at the end 2 of subparagraph (X), by striking the period at 3 the end of subparagraph (Y) and inserting ‘‘, 4 and’’, and by adding at the end the following 5 new subparagraph: 6 ‘‘(Z) section 59B (relating to environ- 7 mental tax).’’. 8 (B) Section 164(a) of such Code is amend- 9 ed by adding at the end the following: 10 ‘‘(5) The environmental tax imposed by section 11 59B.’’. 12 (C) Section 275(a) of such Code is amend- 13 ed by adding at the end the following: ‘‘Para- 14 graph (1) shall not apply to the tax imposed by 15 section 59B.’’. 16 (D) Section 882(a)(1) of such Code is 17 amended by striking ‘‘or 59A’’ and inserting ‘‘, 18 59A, or 59B’’. 19 (E) Section 1561(a) of such Code is 20 amended by inserting ‘‘and one dollar amount 21 in effect under section 59B(a)(2) for purposes 22 of computing the tax imposed by section 59B’’ 23 after ‘‘under section 535(c)(2) and (3)’’. 24 VerDate Sep 11 2014 23:43 Jun 02, 2021 Jkt 019200 PO 00000 Frm 00008 Fmt 6652 Sfmt 6201 E:\BILLS\H2703.IH H2703 kjohnson on DSK79L0C42PROD with BILLS 9 •HR 2703 IH (F) Section 6425(c)(1)(A) of such Code is 1 amended by striking ‘‘plus’’ at the end of clause 2 (i), by striking ‘‘over’’ and inserting ‘‘plus’’ at 3 the end of clause (ii), and by inserting after 4 clause (ii) the following: 5 ‘‘(iii) the tax imposed by section 59B, 6 over’’. 7 (G) Section 6655 of such Code is amend- 8 ed— 9 (i) in subsections (e)(2)(A)(i) and 10 (e)(2)(B)(i), by striking ‘‘taxable income 11 and modified taxable income’’ and insert- 12 ing ‘‘taxable income, modified taxable in- 13 come, and modified environmental tax tax- 14 able income’’, 15 (ii) in subsection (e)(2)(B), by adding 16 at the end the following new clause: 17 ‘‘(iii) MODIFIED ENVIRONMENTAL 18 TAX TAXABLE INCOME.—The term ‘modi- 19 fied environmental tax taxable income’ has 20 the meaning given to such term in section 21 59B(b).’’, and 22 (iii) in subsection (g)(1)(A), by strik- 23 ing ‘‘plus’’ at the end of clause (ii), by re- 24 VerDate Sep 11 2014 23:43 Jun 02, 2021 Jkt 019200 PO 00000 Frm 00009 Fmt 6652 Sfmt 6201 E:\BILLS\H2703.IH H2703 kjohnson on DSK79L0C42PROD with BILLS 10 •HR 2703 IH designating clause (iii) as clause (iv), and 1 by inserting after clause (ii) the following: 2 ‘‘(iii) the tax imposed by section 59B, 3 plus’’. 4 (H) Section 9507(b)(1) of such Code is 5 amended by inserting ‘‘59B,’’ before ‘‘4611’’. 6 (I) The table of parts for subchapter A of 7 chapter 1 of such Code is amended by inserting 8 after the item relating to part VII the following 9 new item: 10 ‘‘PART VIII. ENVIRONMENTAL TAX’’. (d) EFFECTIVE DATES.— 11 (1) EXCISE TAXES.—The amendments made by 12 subsections (a) and (b) shall take effect on the date 13 of the enactment of this Act. 14 (2) INCOME TAX.—The amendments made by 15 subsection (c) shall apply to taxable years beginning 16 after the date of the enactment of this Act. 17 Æ VerDate Sep 11 2014 23:43 Jun 02, 2021 Jkt 019200 PO 00000 Frm 00010 Fmt 6652 Sfmt 6301 E:\BILLS\H2703.IH H2703 kjohnson on DSK79L0C42PROD with BILLS