[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 8632 Introduced in House (IH)]
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119th CONGRESS
2d Session
H. R. 8632
To amend the Internal Revenue Code of 1986 to impose an excise tax on
the sale of perfluoroalkyl or polyfluoroalkyl substances, to establish
a credit for expenditures paid or incurred for the removal of such
substances from public water systems, and for other purposes.
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IN THE HOUSE OF REPRESENTATIVES
April 30, 2026
Ms. Sanchez introduced the following bill; which was referred to the
Committee on Ways and Means
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A BILL
To amend the Internal Revenue Code of 1986 to impose an excise tax on
the sale of perfluoroalkyl or polyfluoroalkyl substances, to establish
a credit for expenditures paid or incurred for the removal of such
substances from public water systems, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``PFAS Cleanup Act''.
SEC. 2. CONGRESSIONAL FINDINGS.
The Congress finds the following:
(1) PFAS pollution results in significant health harms and
social costs, including--
(A) an estimated annual cost as high as
$60,000,000,000 with respect to the impact of such
pollution on health, and
(B) an estimated cost of between $7,000,000 and
$30,000,000 per pound of such pollution with respect to
its removal from drinking water.
(2) Raising revenues to partially address the significant
costs resulting from PFAS pollution would complement other
avenues for addressing such costs, including regulatory efforts
by States and communities to hold PFAS polluters accountable.
SEC. 3. PFAS EXCISE TAX IMPOSED.
(a) In General.--Chapter 38 of the Internal Revenue Code of 1986 is
amended by adding at the end the following new subchapter:
``Subchapter E--Tax on Perfluoroalkyl and Polyfluoroalkyl Substances
``Sec. 4691. Imposition of tax.
``Sec. 4692. Definitions and special rules.
``SEC. 4691. IMPOSITION OF TAX.
``(a) General Rule.--There is hereby imposed a tax on any
perfluoroalkyl or polyfluoroalkyl substance sold by the manufacturer,
producer, or importer thereof.
``(b) Amount of Tax.--The amount of tax imposed by subsection (a)
shall be equal to 45 percent of the price for which the perfluoroalkyl
or polyfluoroalkyl substance is sold.
``SEC. 4692. DEFINITIONS AND SPECIAL RULES.
``(a) Definitions.--For purposes of this subchapter--
``(1) Perfluoroalkyl or polyfluoroalkyl substance.--The
term `perfluoroalkyl or polyfluoroalkyl substance' means any
man-made chemical--
``(A) with at least one fully fluorinated carbon
atom, and
``(B) which is manufactured or produced in the
United States or entered into the United States for
consumption, use, or warehousing.
``(2) United states.--The term `United States' has the
meaning given such term by section 4612(a)(4).
``(3) Importer.--The term `importer' means the person
entering the perfluoroalkyl or polyfluoroalkyl substance for
consumption, use, or warehousing.
``(b) Use Treated as Sale.--If any person manufactures, produces,
or imports any perfluoroalkyl or polyfluoroalkyl substance and uses
such substance, then such person shall be liable for tax under section
4691 in the same manner as if such substance were sold by such person
(at a price equal to the fair market value of such substance).
``(c) Disposition of Revenues From Puerto Rico and the Virgin
Islands.--The provisions of subsections (a)(3) and (b)(3) of section
7652 shall not apply to any tax imposed by section 4691.
``(d) Regulations.--The Secretary, in consultation with the
Administrator of the Environmental Protection Agency, shall prescribe
such regulations or other guidance as may be necessary or appropriate
to carry out the purposes of this subchapter.''.
(b) Clerical Amendment.--The table of subchapters for chapter 38 of
such Code is amended by adding after the item relating to subchapter D
the following new item:
``Subchapter E. Tax on perfluoroalkyl and polyfluoroalkyl
substances.''.
(c) Effective Date.--The amendments made by this section shall
apply with respect to taxable years beginning after December 31, 2026.
SEC. 4. PFAS WATER REMEDIATION CREDIT ESTABLISHED.
(a) In General.--Subpart D of part IV of subchapter A of chapter 1
of the Internal Revenue Code of 1986 is amended by adding at the end
the following new section:
``SEC. 45BB. PFAS WATER REMEDIATION CREDIT.
``(a) Allowance of Credit.--For purposes of section 38, the PFAS
water remediation credit for any taxable year is an amount equal to 25
percent of the qualified PFAS water remediation expenditures paid or
incurred by the taxpayer during the taxable year.
``(b) Qualified PFAS Water Remediation Expenditures.--For purposes
of this section--
``(1) In general.--The term `qualified PFAS water
remediation expenditures' means, with respect to any public
water system owned or operated by the taxpayer, any
expenditures paid or incurred by such taxpayer for the removal
of any perfluoroalkyl or polyfluoroalkyl substance the presence
of which within such public water system is hazardously
excessive.
``(2) Hazardously excessive.--For purposes of paragraph
(1), the presence of any perfluoroalkyl or polyfluoroalkyl
substance within a public water system shall be treated as
hazardously excessive if the taxpayer establishes to the
satisfaction of the Secretary that the presence of such
substance is in excess of the maximum contaminant level (as
defined in section 1401(3) of the Safe Drinking Water Act)
promulgated by the Administrator of the Environmental
Protection Agency for such substance pursuant to section 1412
of the Safe Drinking Water Act.
``(3) Public water system.--The term `public water system'
has the meaning given such term by section 1401(4) of the Safe
Drinking Water Act. Such term shall include any surface water
system or ground water system.
``(4) Perfluoroalkyl or polyfluoroalkyl substance.--The
term `perfluoroalkyl or polyfluoroalkyl substance' means any
man-made chemical with at least one fully fluorinated carbon
atom.
``(c) Controlled Groups.--Rules similar to the rules of paragraph
(1) of section 41(f) shall apply for purposes of this section.
``(d) Regulations.--The Secretary, in consultation with the
Administrator of the Environmental Protection Agency, shall prescribe
such regulations or other guidance as may be necessary or appropriate
to carry out the purposes of this section.''.
(b) Credit Allowed as Part of General Business Credit.--Section
38(b) of such Code is amended by striking ``plus'' at the end of
paragraph (40), by striking the period at the end of paragraph (41) and
inserting ``, plus'', and by adding at the end the following new
paragraph:
``(42) the PFAS water remediation credit determined under
section 45BB(a).''.
(c) Elective Payment of Credit.--Section 6417(b) of such Code is
amended by redesignating paragraphs (10) through (12) as paragraphs
(11) through (13), respectively, and by inserting after paragraph (9)
the following new paragraph:
``(10) The PFAS water remediation credit determined under
section 45BB(a).''.
(d) Clerical Amendment.--The table of sections for subpart D of
part IV of subchapter A of chapter 1 of such Code is amended by adding
after the item relating to section 45AA the following new item:
``Sec. 45BB. PFAS water remediation credit.''.
(e) Effective Date.--The amendments made by this section shall
apply with respect to taxable years beginning after December 31, 2026.
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