PFAS Cleanup Act

Full Title:
PFAS Cleanup Act

Summary#

This bill, the PFAS Cleanup Act, would change the tax code to do two main things. First, it would add a new federal excise tax on perfluoroalkyl or polyfluoroalkyl substances (PFAS) sold by manufacturers, producers, or importers. The tax rate in the bill is 45 percent of the sale price. The bill defines PFAS as any man-made chemical with at least one fully fluorinated carbon atom, and treats uses by the manufacturer, producer, or importer as if the substance were sold (taxed at fair market value). The tax rules would apply to taxable years beginning after December 31, 2026. Second, the bill would create a PFAS water remediation tax credit equal to 25 percent of qualified PFAS water remediation expenditures paid or incurred by a taxpayer that owns or operates a public water system. "Qualified" expenditures are those for removing PFAS that are present at levels above an EPA-promulgated maximum contaminant level. The credit rules also apply to taxable years beginning after December 31, 2026. The Secretary of the Treasury would work with the EPA to write implementing regulations for both the tax and the credit.

What it means for you#

  • If you manufacture, produce, or import PFAS, the bill would make you pay an excise tax equal to 45% of the price at which the PFAS is sold (or the fair market value if you use it instead of selling it).
  • If you own or operate a public water system and pay to remove PFAS that exceed EPA maximum contaminant levels, you could claim a tax credit equal to 25% of those qualified remediation expenditures.
  • If you are not a PFAS seller or a public water system operator, the bill would likely have no direct tax provisions for you in the text provided.

Expenses#

  • The bill text itself does not provide official estimates of revenue raised, administrative costs, or federal budget impacts. No official score is included in the provided text.
  • The bill’s findings state that PFAS pollution has an estimated annual health impact cost as high as $60,000,000,000 and that removal from drinking water has been estimated at between $7,000,000 and $30,000,000 per pound. These figures are presented as congressional findings in the bill text.
  • No publicly available information in the bill text gives projected revenues from the 45% excise tax or the fiscal cost of the 25% remediation credit.

Proponents' View#

  • The bill’s findings say PFAS pollution causes significant health harms and social costs and that raising revenues would help partially address those costs. The text states that this approach would complement other efforts, including state and community actions to hold PFAS polluters accountable.
  • The remediation credit is presented as a way to help public water systems pay for removal of PFAS when levels exceed EPA standards.

Opponents' View#

No publicly available information.