Texas Border Business
WASHINGTON, D.C. – U.S. Sen. Ted Cruz (R-Texas) reintroduced the Chemical Tax Repeal Act today. The bill eliminates the Superfund excise tax imposed by the Infrastructure Investment and Jobs Act passed in 2021. That law re-imposed taxes on 42 different chemicals, critical minerals, and metallic elements used in common household items such as plastics, rubber, concrete, soap, lightbulbs, and electronics.
Upon reintroduction, Sen. Cruz said, “We should be unleashing American manufacturing and strengthening our economy, not increasing the tax burden on Texan and American businesses. Repealing this tax will strengthen the competitiveness of American industries, protect jobs, and ensure everyday essentials remain affordable for American families. I urge my colleagues to expeditiously take up and advance this bill.”
U.S. Chamber of Commerce said, “The U.S. Chamber of Commerce supports the efforts of Senator Ted Cruz and Representative Beth Van Duyne to repeal the Superfund Tax. This tax has increased costs for essential household items and undermined the competitiveness of American manufacturers, yet the EPA has failed to accelerate site cleanups despite the additional revenue. We urge Congress to act swiftly to remove this burden and strengthen the U.S. economy.”
American Chemistry Council said, “We welcome the Senate reintroduction of the Chemical Tax Repeal Act and commend Senators Cruz, Barrasso, Kennedy, Lee, and Cornyn for their leadership on this key issue for America’s economy. Estimates by the Joint Committee on Taxation indicate that the excise taxes could result in a nearly $15 billion hit to the U.S. economy by the time they expire at the end of 2031. The taxes are affecting chemical supply chains and markets and continue to increase costs for consumers and businesses. … We urge additional lawmakers to join the legislation and look forward to swift passage by both chambers.”
Eric R. Byer, President & CEO, Alliance for Chemical Distribution (ACD) said, “The Alliance for Chemical Distribution (ACD) commends Senators Cruz, Kennedy, Cornyn, Barrasso, and Lee for championing the Chemical Tax Repeal Act, which aims to alleviate the undue burdens and uncertainties imposed by the reinstated Superfund Tax. Since its reimplementation in 2021, this tax has posed significant regulatory and financial hurdles for our members, many of whom operate small, family-owned businesses. The situation is further exacerbated by unclear guidance from the Internal Revenue Service. ACD strongly advocates for the prompt enactment of the Chemical Tax Repeal Act to enable the chemical distribution industry to continue its essential operations without the constraints of this excise tax.”
The bill was co-sponsored by Sens. John Kennedy (R-La.), John Cornyn (R-Texas), John Barrasso (R-Wyo.), and Mike Lee (R-Utah).
Read the bill text here.
BACKGROUND
The Chemical Tax, also known as the Superfund Tax, existed from 1987-1995 and was used to mitigate certain contaminated sites around the country with mixed success and high costs. The 2021 Infrastructure Investment and Jobs Act re-imposed the tax at twice its prior levels. The costs imposed by this measure travel down the supply chain, increasing prices for manufacturing materials to final products. Texas is home to forty percent of the nation’s chemical manufacturing plants.
Sen. Cruz’s legislation received support from the U.S. Chamber of Commerce, American Chemistry Council, Alliance for Chemical Distribution (ACD), Vinyl Institute, National Taxpayers Union (NTU), Taxpayer Protection Alliance (TPA), Battery Council International (BCI), Americans for Prosperity (AFP), and Institute of Makers of Explosives (IME).
Sen. Cruz previously introduced the Chemical Tax Repeal Act in April 2023 and December 2021.
