Short title

This Act may be cited as the

PFAS Cleanup Act

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.

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:

Tax on perfluoroalkyl and polyfluoroalkyl substances

Sec. 4691. Imposition of tax.

Sec. 4692. Definitions and special rules.

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.

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.

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:

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

(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.