Superfund Polluter Pays Act

I 116TH CONGRESS 1ST SESSION H. R. 5101 To amend the Internal Revenue Code of 1986 to extend the financing of the Superfund. IN THE HOUSE OF REPRESENTATIVES NOVEMBER 14, 2019 Mr. PALLONE (for himself and Mr. PASCRELL) introduced the following bill; which was referred to the Committee 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) EXCISE TAXES.— 7 (1) IN GENERAL.—Section 4611(e) of the Inter- 8 nal Revenue Code of 1986 is amended to read as fol- 9 lows: 10 VerDate Sep 11 2014 19:58 Nov 25, 2019 Jkt 099200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\H5101.IH H5101 pamtmann on DSKBC07HB2PROD with BILLS 2 •HR 5101 IH ‘‘(e) APPLICATION OF HAZARDOUS SUBSTANCE 1 SUPERFUND FINANCING RATE.—The Hazardous Sub- 2 stance Superfund financing rate under this section shall 3 apply after December 31, 1986, and before January 1, 4 1996, and after the date of the enactment of this sub- 5 section and before January 1, 2024.’’. 6 (2) RATE OF TAX ADJUSTED FOR INFLATION.— 7 (A) IN GENERAL.—Section 4611(c)(2)(A) 8 of such Code is amended by striking ‘‘9.7 9 cents’’ and inserting ‘‘16.3 cents’’. 10 (B) CONTINUED ADJUSTMENT FOR INFLA- 11 TION.—Section 4611(c) of such Code is amend- 12 ed by adding at the end the following new para- 13 graph: 14 ‘‘(3) INFLATION ADJUSTMENT.— 15 ‘‘(A) IN GENERAL.—In the case of a cal- 16 endar year beginning after 2019, the 16.3 cents 17 amount in paragraph (2)(A) shall be increased 18 by an amount equal to— 19 ‘‘(i) such dollar amount, multiplied by 20 ‘‘(ii) the cost-of-living adjustment de- 21 termined under section 1(f)(3) for such 22 calendar year, determined by substituting 23 ‘calendar year 2018’ for ‘calendar year 24 2016’ in subparagraph (A)(ii) thereof. 25 VerDate Sep 11 2014 19:58 Nov 25, 2019 Jkt 099200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\H5101.IH H5101 pamtmann on DSKBC07HB2PROD with BILLS 3 •HR 5101 IH ‘‘(B) ROUNDING.—If any amount as ad- 1 justed under subparagraph (A) is not a multiple 2 of 0.1 cents, such amount shall be rounded to 3 the nearest multiple of 0.1 cents.’’. 4 (3) TECHNICAL AMENDMENTS.— 5 (A) Section 4611(b) of such Code is 6 amended— 7 (i) by striking ‘‘or exported from’’ in 8 paragraph (1)(A), 9 (ii) by striking ‘‘or exportation’’ in 10 paragraph (1)(B), and 11 (iii) by striking ‘‘AND EXPORTATION’’ 12 in the heading. 13 (B) Section 4611(d)(3) of such Code is 14 amended— 15 (i) by striking ‘‘or exporting the crude 16 oil, as the case may be’’ in the text and in- 17 serting ‘‘the crude oil’’, and 18 (ii) by striking ‘‘OR EXPORTS’’ in the 19 heading. 20 (b) CORPORATE ENVIRONMENTAL INCOME TAX.— 21 (1) Subchapter A of chapter 1 of the Internal 22 Revenue Code of 1986 is amended by adding at the 23 end the following new part: 24 VerDate Sep 11 2014 19:58 Nov 25, 2019 Jkt 099200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\H5101.IH H5101 pamtmann on DSKBC07HB2PROD with BILLS 4 •HR 5101 IH ‘‘PART VIII—ENVIRONMENTAL TAX 1 ‘‘Sec. 59B. Environmental Tax. ‘‘SEC. 59B. ENVIRONMENTAL TAX. 2 ‘‘(a) IMPOSITION OF TAX.—In the case of a corpora- 3 tion, there is hereby imposed (in addition to any other tax 4 imposed by this subtitle) a tax equal to 0.12 percent of 5 the excess of— 6 ‘‘(1) the modified environmental tax taxable in- 7 come of such corporation for the taxable year, over 8 ‘‘(2) $3,130,000. 9 ‘‘(b) MODIFIED ENVIRONMENTAL TAX TAXABLE IN- 10 COME.—For purposes of this section, the term ‘modified 11 environmental tax taxable income’ means taxable income 12 determined without regard to— 13 ‘‘(1) the net operating loss deduction allowable 14 under section 172, and 15 ‘‘(2) the deduction allowed under section 16 164(a)(5). 17 ‘‘(c) EXCEPTION FOR RICS AND REITS.—The tax 18 imposed by subsection (a) shall not apply to— 19 ‘‘(1) a regulated investment company to which 20 part I of subchapter M applies, and 21 ‘‘(2) a real estate investment trust to which 22 part II of subchapter M applies. 23 ‘‘(d) SPECIAL RULES.— 24 VerDate Sep 11 2014 19:58 Nov 25, 2019 Jkt 099200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\H5101.IH H5101 pamtmann on DSKBC07HB2PROD with BILLS 5 •HR 5101 IH ‘‘(1) SHORT TAXABLE YEARS.—The application 1 of this section to taxable years of less than 12 2 months shall be in accordance with regulations pre- 3 scribed by the Secretary. 4 ‘‘(2) SECTION 15 NOT TO APPLY.—Section 15 5 shall not apply to the tax imposed by this section. 6 ‘‘(e) INFLATION ADJUSTMENT.— 7 ‘‘(1) IN GENERAL.—In the case of a taxable 8 year beginning after 2019, the $3,130,000 amount 9 in subsection (a)(2) shall be increased by an amount 10 equal to— 11 ‘‘(A) such dollar amount, multiplied by 12 ‘‘(B) the cost-of-living adjustment deter- 13 mined under section 1(f)(3) for the calendar 14 year in which the taxable year begins, deter- 15 mined by substituting ‘calendar year 2018’ for 16 ‘calendar year 2016’ in subparagraph (A)(ii) 17 thereof. 18 ‘‘(2) ROUNDING.—If any amount as adjusted 19 under paragraph (1) is not a multiple of $10,000, 20 such amount shall be rounded to the nearest mul- 21 tiple of $10,000. 22 ‘‘(f) APPLICATION OF TAX.—The tax imposed by this 23 section shall apply to taxable years beginning after the 24 VerDate Sep 11 2014 19:58 Nov 25, 2019 Jkt 099200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6201 E:\BILLS\H5101.IH H5101 pamtmann on DSKBC07HB2PROD with BILLS 6 •HR 5101 IH date of the enactment of this subsection and before Janu- 1 ary 1, 2025.’’. 2 (2) CONFORMING AMENDMENTS.— 3 (A) Paragraph (2) of section 26(b) of such 4 Code is amended by striking ‘‘and’’ at the end 5 of subparagraph (X), by striking the period at 6 the end of subparagraph (Y) and inserting ‘‘, 7 and’’, and by adding at the end the following 8 new subparagraph: 9 ‘‘(Z) section 59B (relating to environ- 10 mental tax).’’. 11 (B) Section 164(a) of such Code is amend- 12 ed by adding at the end the following: 13 ‘‘(5) The environmental tax imposed by section 14 59B.’’. 15 (C) Section 275(a) of such Code is amend- 16 ed by adding at the end the following: ‘‘Para- 17 graph (1) shall not apply to the tax imposed by 18 section 59B.’’. 19 (D) Section 882(a)(1) of such Code is 20 amended by striking ‘‘or 59A’’ and inserting ‘‘, 21 59A, or 59B’’. 22 (E) Section 1561(a) of such Code is 23 amended by inserting ‘‘and one dollar amount 24 in effect under section 59B(a)(2) for purposes 25 VerDate Sep 11 2014 19:58 Nov 25, 2019 Jkt 099200 PO 00000 Frm 00006 Fmt 6652 Sfmt 6201 E:\BILLS\H5101.IH H5101 pamtmann on DSKBC07HB2PROD with BILLS 7 •HR 5101 IH of computing the tax imposed by section 59B’’ 1 after ‘‘under section 535(c)(2) and (3)’’. 2 (F) Section 6425(c)(1)(A) of such Code is 3 amended by striking ‘‘plus’’ at the end of clause 4 (i), by striking ‘‘over’’ and inserting ‘‘plus’’ at 5 the end of clause (ii), and by inserting after 6 clause (ii) the following: 7 ‘‘(iii) the tax imposed by section 59B, 8 over’’. 9 (G) Section 6655 of such Code is amend- 10 ed— 11 (i) in subsections (e)(2)(A)(i) and 12 (e)(2)(B)(i), by striking ‘‘taxable income 13 and modified taxable income’’ and insert- 14 ing ‘‘taxable income, modified taxable in- 15 come, and modified environmental tax tax- 16 able income’’, 17 (ii) in subsection (e)(2)(B), by adding 18 at the end the following new clause: 19 ‘‘(iii) MODIFIED ENVIRONMENTAL 20 TAX TAXABLE INCOME.—The term ‘modi- 21 fied environmental tax taxable income’ has 22 the meaning given to such term in section 23 59B(b).’’, and 24 VerDate Sep 11 2014 19:58 Nov 25, 2019 Jkt 099200 PO 00000 Frm 00007 Fmt 6652 Sfmt 6201 E:\BILLS\H5101.IH H5101 pamtmann on DSKBC07HB2PROD with BILLS 8 •HR 5101 IH (iii) in subsection (g)(1)(A), by strik- 1 ing ‘‘plus’’ at the end of clause (ii), by re- 2 designating clause (iii) as clause (iv), and 3 by inserting after clause (ii) the following: 4 ‘‘(iii) the tax imposed by section 59B, 5 plus’’. 6 (H) Section 9507(b)(1) of such Code is 7 amended by inserting ‘‘59B,’’ before ‘‘4611’’. 8 (I) The table of parts for subchapter A of 9 chapter 1 of such Code is amended by inserting 10 after the item relating to part VII the following 11 new item: 12 ‘‘PART VIII. ENVIRONMENTAL TAX’’. (c) EFFECTIVE DATES.— 13 (1) EXCISE TAXES.—The amendments made by 14 subsection (a) shall take effect on the date of the en- 15 actment of this Act. 16 (2) INCOME TAX.—The amendments made by 17 subsection (b) shall apply to taxable years beginning 18 after the date of the enactment of this Act. 19 Æ VerDate Sep 11 2014 19:58 Nov 25, 2019 Jkt 099200 PO 00000 Frm 00008 Fmt 6652 Sfmt 6301 E:\BILLS\H5101.IH H5101 pamtmann on DSKBC07HB2PROD with BILLS