Superfund Excise Tax Preparation

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Superfund Excise Tax Preparation

The  Superfund Excise Tax Preparation is for the Superfund Chemical Excise Tax previously levied by the Internal Revenue Service (IRS) on several chemicals and compounds has been reintroduced. Companies that haven’t had to worry about these taxes since 1995 are hurrying to get up to speed on the intricacies and obligations of the current version of the legislation.

The SMAART Company team has extensive knowledge on the Superfund Excise tax, we have done hundreds of these tax preparations. Making us one of the experts in this field.

Why is Superfund Excise Tax Important?

The Comprehensive Environmental Response Compensation and Liability Act of 1980 (CERCLA) was the legislation that led to the creation of the hazardous-substance cleanup initiative. The initial Hazardous Substance Superfund trust was established to fund this program. The IIJA reinforces this program until 2031, and it is anticipated that the revenue generated will amount to more than $14 billion over the next ten years.

What is Subject to the Superfund Excise Tax Under New Legislation?

The new legislation imposes an excise tax on the use, purchase, or import of 42 subject to tax “chemicals” and 151 taxable “harmful chemicals.” The Internal Revenue Service (IRS) has approved lists of these chemicals and substances (under Sections 4661 and 4671 of the Internal Revenue Code) but has warned importers that the lists may be updated as new chemicals or substances are added or eliminated.

Are exporters subject to taxes?

No. The taxes will only apply to chemicals or substances brought into the country, not those that leave it. Businesses that export items made up of taxable chemicals or substances are eligible for a refund if they paid the tax before the product was manufactured.

Are Old and New Superfund Excise Taxes Similar?

No. When the IIJA brought back these two taxes, it doubled the rates that were in effect before. According to Section 4661, the tax rate for chemicals can range anywhere from $0.44 to $9.74 per ton. This amount is determined by whether the chemical is being sold, utilized, or kept in a particular manner.

The substance’s chemical makeup determines the tax that should be applied to a hazardous material. According to the current version of the law, a “taxable substance” is defined as a material that contains at least 20% by weight or worth of any of the compounds mentioned in Section 4661. This threshold was set at 50% but has since been reduced.

How to Calculate Superfund Excise Tax?

  • Use the IRS’s announced default rates.
  • Use a rate of 10% of the estimated worth of the imported items as your estimate.
  • Rates are determined by multiplying the total proportion of each listed chemical in the compound by the total number of chemicals. 

A greater tax rate will result from self-assessment based on 10% of appraisal value than from either of the other two options.


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