[Federal Register Volume 90, Number 147 (Monday, August 4, 2025)]
[Notices]
[Pages 36520-36534]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2025-14705]
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DEPARTMENT OF THE TREASURY
Internal Revenue Service
Superfund Tax on Chemical Substances; Notice of Determinations To
Add Substances to List of Taxable Substances; Corrected Name and Tax
Rate for Sodium Nitrilotriacetate Monohydrate
AGENCY: Internal Revenue Service (IRS), Treasury.
ACTION: Notice of determinations.
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SUMMARY: This notice of determinations modifies the list of taxable
substances to include the following 21 substances: polyphenylene
sulfide, cellulose acetate (degree of substitution = 1.5-2.0), 4,4'-
isopropylidenediphenol-epichlorohydrin copolymer, nylon 6, caprolactam,
methyl ethyl ketoxime, iso-butanol, diethylene glycol monomethyl ether,
ethylene glycol phenyl ether, methoxytriglycol, propylene glycol methyl
ether acetate, propylene glycol methyl ether, propylene glycol n-propyl
ether, propylene glycol phenyl ether, di-isobutyl carbinol, di-isobutyl
ketone, methyl isobutyl carbinol, cyanuric acid, potassium bicarbonate,
potassium carbonate, and sodium chlorite. This notice also modifies the
list included in Notice 2021-66 by correcting a typographical error in
the spelling of the name of the taxable substance sodium
nitrilotriacetate monohydrate and prescribing a tax rate for sodium
nitrilotriacetate monohydrate.
DATES: The effective date for purposes of the tax under section 4671 of
the Internal Revenue Code (Code) for the taxable substances added to
the list is January 1, 2026. For the effective date for purposes of
refund claims under section 4662(e) of the Code for the taxable
substances added to the list, see the determination for each substance.
The tax rate for sodium nitrilotriacetate monohydrate is effective July
1, 2022.
FOR FURTHER INFORMATION CONTACT: Andrew Clark or Jacob Peeples at (202)
317-6855 (not a toll-free number).
SUPPLEMENTARY INFORMATION:
Background
Section 4671(a) of the Code imposes an excise tax on the sale or
use of a taxable substance by the importer thereof. Section 4672(a)(1)
of the Code defines the term taxable substance as any substance which,
at the time of sale or use by the importer, is listed as a taxable
substance by the Secretary of the Treasury or the Secretary's delegate
(Secretary) on the list of taxable substances under section 4672(a)
(List).
Under section 4672(a)(2), an importer or exporter of any substance
may request that the Secretary determine whether such substance should
be added to the List as a taxable substance or should be removed from
the List. Under section 4672(a)(2)(B) and (4) and (b)(2), the Secretary
is required to add a substance to the List if the Secretary determines
that any taxable chemicals that are listed in section 4661(b) of the
Code constitute more than 20 percent of the weight, or more than 20
percent of the value, of the materials used to produce such substance,
which determination is required under section 4672(a)(2)(B) and (a)(4)
to be made based on the predominant method of production (weight or
value test). Section 4672(a)(4) authorizes the Secretary to remove a
substance from the List only if such substance meets
[[Page 36521]]
neither the weight nor the value test of section 4672(a)(2)(B).
Section 4672(a)(3) includes an initial list of taxable substances.
Section 4 of Notice 2021-66 (2021-52 I.R.B. 901) provides the list of
101 substances that the Secretary added to the List before November 15,
2021. Rev. Proc. 2022-26 (2022-29 I.R.B. 90), as modified by Rev. Proc.
2023-20 (2023-15 I.R.B. 636), provides the exclusive procedures by
which an importer, exporter, or interested person may request a
determination that a particular substance be added to or removed from
the List.
Section 4671(b)(3) authorizes the Secretary to prescribe a tax rate
for taxable substances in lieu of the tax rate specified in section
4671(b)(2). The tax rate prescribed by the Secretary for a substance
added to the List is calculated by multiplying the conversion factor
for each taxable chemical used in the production of the substance by
the corresponding tax rate for that taxable chemical under section
4661(b), and adding those results together. Conversion factors are
determined based on the predominant method of production of the
substance. See sections 8 and 10.04(8) of Rev. Proc. 2022-26. Importers
are not required to use the prescribed tax rate for a taxable substance
and may calculate their own rate under section 4671(b)(1).
Pursuant to section 4672(a)(4), this notice of determination
modifies the List to include the 21 additional taxable substances
listed in the Summary of Determinations section of this notice, as
explained in the Requests to Add Substances to the List and General
Explanation of Determinations sections of this notice. The
determination for each specific substance added to the List is
explained in parts I through XXI of the Modifications to the List of
Taxable Substances section of this notice.
In June 2022, the Secretary prescribed rates for some of the
substances listed in section 4672(a)(3) and Notice 2021-66.\1\ The
Correction to the List of Taxable Substances section of this notice
modifies Notice 2021-66 by correcting a typographical error in the
spelling of sodium nitrilotriacetate monohydrate and prescribing a tax
rate for the substance. The updated List and prescribed tax rates for
taxable substances will be included in the instructions to Form 6627,
Environmental Taxes.
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\1\ Available at https://www.irs.gov/newsroom/irs-issues-superfund-chemical-excise-tax-rates.
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Summary of Determinations
On August 1, 2025, the Secretary determined to add the following
substances to the List:
I. Polyphenylene sulfide
II. Cellulose acetate (degree of substitution = 1.5-2.0)
III. 4,4'-isopropylidenediphenol-epichlorohydrin copolymer
IV. Nylon 6
V. Caprolactam
VI. Methyl ethyl ketoxime
VII. Iso-butanol
VIII. Diethylene glycol monomethyl ether
IX. Ethylene glycol phenyl ether
X. Methoxytriglycol
XI. Propylene glycol methyl ether acetate
XII. Propylene glycol methyl ether
XIII. Propylene glycol n-propyl ether
XIV. Propylene glycol phenyl ether
XV. Di-isobutyl carbinol
XVI. Di-isobutyl ketone
XVII. Methyl isobutyl carbinol
XVIII. Cyanuric acid
XIX. Potassium bicarbonate
XX. Potassium carbonate
XXI. Sodium chlorite
Requests To Add Substances to the List
For each of the substances listed in the Summary of Determinations
section of this notice, an importer, an exporter, or an interested
person submitted a petition to the IRS in accordance with Rev. Proc.
2022-26 requesting a determination under section 4672(a)(2) to add the
substance to the List. For each substance, the petition represented
that the taxable chemicals constitute more than 20 percent of the
weight of materials used to produce the substance, based on the
predominant method of production.
General Explanation of Determinations
After reviewing the petitions for each of the substances listed in
the Summary of Determinations section of this notice, the Secretary
determined that taxable chemicals constitute more than 20 percent by
weight of the materials used to produce the substance, based on the
predominant method of production. Therefore, each of the substances is
added to the List as required under section 4672(a)(2) and (4). The
Secretary made the determinations to add these substances to the List
in accordance with the requirements of section 4672(a)(2) and (4), and
pursuant to the procedures set forth in Rev. Proc. 2022-26, as modified
by Rev. Proc. 2023-20.
The relevant information for each taxable substance is provided in
the specific determinations included in parts I through XXI of the
Modification to the List of Taxable Substances section of this notice.
The tax rate for each taxable substance, as prescribed by the
Secretary, is provided in paragraph (a)(6) of each specific
determination.
Classification numbers proposed by each petitioner are included in
paragraph (b) of each part, after each specific determination. The
classification numbers provided with respect to a taxable substance are
not part of the determination of whether it is added to the List and do
not impact whether such substance is a taxable substance. Taxpayers may
not rely on classification numbers for any purpose under sections 4661,
4662, 4671, and 4672, including (but not limited to) identification of
a substance as a taxable substance on the List. Classification numbers
may change over time. The Department of the Treasury (Treasury
Department) and the IRS do not anticipate updating this document to
reflect any such changes.
For purposes of the section 4671 tax, all the modifications in
parts I through XXI of the Modification to the List of Taxable
Substances section of this notice are effective on and after January 1,
2026. For purposes of refund claims under section 4662(e), see the
effective date for each specific determination in paragraph (a)(5)(ii)
of each of parts I through XXI of the Modification to the List of
Taxable Substances section of this notice. The tax rate for sodium
nitrilotriacetate monohydrate in the Correction to the List of Taxable
Substances section of this notice is effective July 1, 2022.
Modifications to the List of Taxable Substances
I. Determination To Add Polyphenylene Sulfide to the List
Celanese Ltd., an exporter of polyphenylene sulfide, submitted a
petition in accordance with Rev. Proc. 2022-26 requesting to add
polyphenylene sulfide to the List. According to the petition, the
taxable chemicals sodium hydroxide, benzene, and chlorine constitute
90.00 percent by weight of the materials used to produce polyphenylene
sulfide, based on the predominant method of production.
(a) Determination. Polyphenylene sulfide is added to the list of
taxable substances under section 4672(a). Other pertinent information
is as follows:
(1) Predominant method of production: The process involves three
separate reactions:
(i) 1,4 dichlorobenzene is made from the reaction of benzene with 2
equivalents of chlorine;
[[Page 36522]]
(ii) Sodium hydrogen sulfide is made from the reaction of hydrogen
sulfide with sodium hydroxide; and
(iii) 1,4-dichlorobenzene (p-dichlorobenzene, p-DCB), sodium
hydrosulfide (NaSH), and sodium hydroxide (NaOH) are reacted at high
temperature and high pressure to form polyphenylene sulfide and
byproduct sodium chloride.
(2) Stoichiometric material consumption equation:
n [2 NaOH + C6H6 + 2 Cl2 +
H2S] [rarr] [C6H4S]n + 2n
H2O + 2n NaCl + 2n HCl
(3) Reasons for the determination: The polyphenylene sulfide
petition was filed on December 20, 2022. The notice of filing
summarizing the petition and requesting comments was published in the
Federal Register (87 FR 80579) on December 30, 2022. A supplemental
notice of filing announcing a corrected petition and correction to the
stoichiometric material consumption equation in the original notice of
filing and requesting comments was published in the Federal Register
(89 FR 11941) on February 15, 2024. The Treasury Department and the IRS
received no written comments in response to the original notice of
filing or the supplemental notice of filing. A public hearing was
neither requested nor held.
The Secretary followed the process in section 4672(a)(2)(B) in
making this determination. A review of the stoichiometric material
consumption equation in the corrected petition, as provided in the
supplemental notice of filing, and other information in the petition
shows that the taxable chemicals sodium hydroxide, benzene, and
chlorine constitute more than 20 percent by weight of the materials
used in the production of polyphenylene sulfide, based on the
predominant method of production. Therefore, the test in section
4672(a)(2)(B) is satisfied.
(4) Date of determination: August 1, 2025.
(5) Effective dates for addition of polyphenylene sulfide to the
List:
(i) Effective date for purposes of the section 4671 tax (see
section 11.01 of Rev. Proc. 2022-26): January 1, 2026.
(ii) Effective date for purposes of refund claims under section
4662(e) (see sections 11.02 and 11.03 of Rev. Proc. 2022-26, as
modified by section 3 of Rev. Proc. 2023-20): July 1, 2022.
(6) Tax rate prescribed by the Secretary: $14.50 per ton. The
conversion factors for the taxable chemicals used in the production of
polyphenylene sulfide are 0.74 for sodium hydroxide, 0.72 for benzene,
and 1.31 for chlorine. The tax rate is calculated by adding the
products of the conversion factor for each taxable chemical and the tax
rate for that taxable chemical: ((0.74 x $0.56) + (0.72 x $9.74) +
(1.31 x $5.40) = $14.50).
(b) Classification numbers.
(1) The Secretary has no basis to object to the following proposed
classification numbers:
(i) HTSUS number: 3911.90.2500.
(ii) Schedule B number: 3911.90.6100.
(iii) CAS numbers: 25212-74-2, 26125-40-6.
(2) The Secretary is unable to confirm the following proposed
classification numbers: Not applicable.
II. Determination To Add Cellulose Acetate (Degree of Substitution =
1.5-2.0) to the List
Celanese Ltd., an exporter of cellulose acetate (degree of
substitution = 1.5-2.0), submitted a petition in accordance with Rev.
Proc. 2022-26 requesting to add cellulose acetate (degree of
substitution = 1.5-2.0) to the List. According to the petition, the
taxable chemical methane constitutes greater than 20 percent \2\ by
weight, of the materials used to produce cellulose acetate (degree of
substitution = 1.5-2.0), based on the predominant method of production.
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\2\ The petition covers cellulose acetate (degree of
substitution = 1.5-2.0), commonly referred to as cellulose
diacetate. Cellulose acetate in this range generally has similar
properties. The petition uses the lowest end of the range cellulose
acetate (degree of substitution = 1.5) (21 percent taxable
chemicals) to demonstrate that >20% of the substance is made from
taxable chemicals, and the midpoint cellulose acetate (degree of
substitution = 1.75) (24 percent taxable chemicals) to calculate the
tax rate for the entire range.
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(a) Determination. Cellulose acetate (degree of substitution = 1.5-
2.0) is added to the list of taxable substances under section 4672(a).
Other pertinent information is as follows:
(1) Predominant method of production: Cellulose acetate is derived
from cellulose by deconstructing wood pulp into a purified cellulose.
The cellulose is reacted with acetic acid and acetic anhydride in the
presence of sulfuric acid. It is subjected to a controlled, partial
hydrolysis to remove the sulfate and a sufficient number of acetate
groups to give the product the desired degree of substitution. The
polymer unit is the fundamental repeating structure of cellulose and
has three hydroxyl groups which can react to form acetate esters. The
most common form of cellulose acetate fiber has an acetate group on
approximately two of every three hydroxyls, referred to as cellulose
diacetate. In this petitioner's cellulose acetate, the actual
substitution is 1.674 acetate/cellulose, a degree of substitution
commonly used in U.S. cellulose acetate production.
(2) Stoichiometric material consumption equation:
3.5 CH4 + 1.75 O2 +
C6H10O5 [rarr]
C9.5H13.5O6.75 + 3.50
H2 + 1.75 H2O
(3) Reasons for the determination: The cellulose acetate (degree of
substitution = 1.5-2.0) petition was filed on December 20, 2022. The
notice of filing summarizing the petition and requesting comments was
published in the Federal Register (88 FR 16307) on March 16, 2023. The
Treasury Department and the IRS received no written comments in
response to the notice of filing. A public hearing was neither
requested nor held.
The Secretary followed the process in section 4672(a)(2)(B) in
making this determination. A review of the stoichiometric material
consumption equation and other information in the petition shows that
the taxable chemical methane constitutes more than 20 percent by weight
of the materials used in the production of cellulose acetate (degree of
substitution = 1.5-2.0), based on the predominant method of production.
Therefore, the test in section 4672(a)(2)(B) is satisfied.
(4) Date of determination: August 1, 2025.
(5) Effective dates for addition of cellulose acetate (degree of
substitution = 1.5-2.0) to the List:
(i) Effective date for purposes of the section 4671 tax (see
section 11.01 of Rev. Proc. 2022-26): January 1, 2026.
(ii) Effective date for purposes of refund claims under section
4662(e) (see sections 11.02 and 11.03 of Rev. Proc. 2022-26, as
modified by section 3 of Rev. Proc. 2023-20): July 1, 2022.
(6) Tax rate prescribed by the Secretary: $1.65 per ton. The
conversion factor for the methane used in the production of cellulose
acetate (degree of substitution = 1.5-2.0) is 0.24. The tax rate is
calculated by multiplying the conversion factor by the tax rate for
methane: (0.24 x $6.88 = $1.65).
(b) Classification numbers.
(1) The Secretary has no basis to object to the following proposed
classification number: CAS number: 9035-69-2.
(2) The Secretary is unable to confirm the following proposed
classification numbers:
(i) HTSUS numbers: 5502.10.0000, 5403.33.0020.
(ii) Schedule B numbers: 5502.10.0000, 5403.33.0000.
[[Page 36523]]
III. Determination To Add 4,4'-Isopropylidenediphenol-Epichlorohydrin
Copolymer to the List
Westlake Epoxy Inc., an exporter of 4,4'-isopropylidenediphenol-
epichlorohydrin copolymer, also known as ``bisphenol A epoxy resin,''
submitted a petition in accordance with Rev. Proc. 2022-26 requesting
to add 4,4'-isopropylidenediphenol-epichlorohydrin copolymer to the
List. According to the petition, the taxable chemicals benzene,
propylene, chlorine, and sodium hydroxide constitute 92.98 percent by
weight of the materials used to produce 4,4'-isopropylidenediphenol-
epichlorohydrin copolymer, based on the predominant method of
production.
(a) Determination. 4,4'-isopropylidenediphenol-epichlorohydrin
copolymer, also known as ``bisphenol A epoxy resin,'' is added to the
list of taxable substances under section 4672(a). Other pertinent
information is as follows:
(1) Predominant method of production: 4,4'-isopropylidenediphenol-
epichlorohydrin copolymer is produced from epichlorohydrin and
bisphenol-A via a two-step glycidation reaction sequence.
Epichlorohydrin is typically produced via an addition reaction of
chlorine to propylene that yields allyl chloride and subsequently
dichlorohydrin isomers, followed by a dehydrochlorination step in the
presence of sodium hydroxide to yield epichlorohydrin. Bisphenol A is
typically produced from the reaction of benzene and propylene that
yields phenol and acetone. Under acidic conditions and with an
appropriate catalyst, two units of phenol can react with one unit of
acetone to yield Bisphenol A. With available epichlorohydrin and
Bisphenol A, 4,4'-isopropylidenediphenol-epichlorohydrin copolymer can
be obtained through a two-step glycidation reaction sequence where
epichlorohydrin is added to Bisphenol A (deprotonated with sodium
hydroxide) and then water, sodium hydroxide, and sodium chloride are
removed in a dehydrochlorination step.
(2) Stoichiometric material consumption equation:
2 C6H6 (benzene) + 4 C3H6
(propylene) + 4 Cl2 (chlorine) + 6 NaOH (sodium hydroxide) +
2 O2 (oxygen) [rarr]
(CH3)2C(C6H4OC3H5
O)2 (4,4'-isopropylidenediphenol-epichlorohydrin copolymer)
+ CH3COCH3 (acetone) + 2 HCl (hydrogen chloride)
+ 6 NaCl (sodium chloride) + 5 H2O (water)
(3) Reasons for the determination: The 4,4'-isopropylidenediphenol-
epichlorohydrin copolymer petition was filed on December 20, 2022. The
notice of filing summarizing the petition and requesting comments was
published in the Federal Register (88 FR 3478) on January 19, 2023. The
Treasury Department and the IRS received no written comments in
response to the notice of filing. A public hearing was neither
requested nor held.
The Secretary followed the process in section 4672(a)(2)(B) in
making this determination. A review of the stoichiometric material
consumption equation and other information in the petition shows that
the taxable chemicals benzene, propylene, chlorine, and sodium
hydroxide constitute more than 20 percent by weight of the materials
used in the production of 4,4'-isopropylidenediphenol-epichlorohydrin
copolymer, based on the predominant method of production. Therefore,
the test in section 4672(a)(2)(B) is satisfied.
(4) Date of determination: August 1, 2025.
(5) Effective dates for addition of 4,4'-isopropylidenediphenol-
epichlorohydrin copolymer to the List:
(i) Effective date for purposes of the section 4671 tax (see
section 11.01 of Rev. Proc. 2022-26): January 1, 2026.
(ii) Effective date for purposes of refund claims under section
4662(e) (see sections 11.02 and 11.03 of Rev. Proc. 2022-26, as
modified by section 3 of Rev. Proc. 2023-20): July 1, 2022.
(6) Tax rate prescribed by the Secretary: $14.13 per ton. The
conversion factors for the taxable chemicals used in the production of
4,4'-isopropylidenediphenol-epichlorohydrin copolymer are 0.46 for
benzene, 0.49 for propylene, 0.83 for chlorine, and 0.71 for sodium
hydroxide. The tax rate is calculated by adding the products of the
conversion factor for each taxable chemical and the tax rate for that
taxable chemical: ((0.46 x $9.74) + (0.49 x $9.74) + (0.83 x $5.40) +
(0.71 x $0.56) = $14.13).
(b) Classification numbers.
(1) The Secretary has no basis to object to the following proposed
classification numbers:
(i) HTSUS number: 3907.30.0000.
(ii) Schedule B number: 3907.30.0000.
(iii) CAS number: 25068-38-6.
(2) The Secretary is unable to confirm the following proposed
classification numbers: Not applicable.
IV. Determination To Add Nylon 6 to the List
AdvanSix Inc., an exporter of nylon 6, submitted a petition in
accordance with Rev. Proc. 2022-26 requesting to add nylon 6 to the
List. According to the petition, nylon 6 is made from the taxable
chemicals benzene, propylene, ammonia, methane, and sulfuric acid;
however, sulfuric acid is cancelled from the stoichiometric material
consumption equation due to no net consumption/production. The petition
further represented that the benzene, propylene, ammonia, and methane
constitute 46.64 percent by weight of the materials used to produce
nylon 6, based on the predominant method of production.
(a) Determination. Nylon 6 is added to the list of taxable
substances under section 4672(a). Other pertinent information is as
follows:
(1) Predominant method of production: The predominant method of
production of nylon 6 is the ``hydrolytically initiated ring-opening
polymerization of caprolactam'' which is also referred to in industry
literature as the ``hydrolytic polymerization of nylon 6.'' This
process is termed ``hydrolytic'' because water plays a key role in the
chemical mechanism. Nylon 6 is produced almost exclusively through this
method because it is easier to control and better adapted for large-
scale operations.
The hydrolytic polymerization of nylon 6 generally entails heating
a mixture of caprolactam and water to ~270 [deg]C in an inert
atmosphere of nitrogen and holding until equilibrium conditions are
achieved. The three principal reactions in this process are summarized
below:
(i) In the initiation step of the process, the caprolactam ring is
hydrolyzed via ring opening with the addition of one water molecule to
become amino-caproic acid.
(ii) In the next step of the mechanism, the amino-caproic acid acts
as the initiating species to begin the addition polymerization by ring-
opening of caprolactam.
(iii) The last major mechanism step of the hydrolytic
polymerization of nylon 6 is the condensation of primary amine and
carboxylic acid chain-ends to form an amide linkage in the now higher
molecular weight polyamide with the simultaneous loss of a water
molecule.
(2) Stoichiometric material consumption equation:
nC6H6 (benzene) + nC3H6
(propylene) + 2.5nO2 (oxygen) + 0.5nCH4 (methane)
+ 5nNH3 (ammonia) + 2nH2O (water) +
2nSO2 (sulfur dioxide) [rarr]
(C6H11NO)n (nylon 6) +
nC3H6O (acetone) +
2n(NH4)2SO4 (ammonium sulfate) +
0.5nCO2 (carbon dioxide)
[[Page 36524]]
(3) Reasons for the determination: The nylon 6 petition was filed
on November 8, 2023. The notice of filing summarizing the petition and
requesting comments was published in the Federal Register on February
22, 2024 (89 FR 13399). A supplemental notice of filing announcing a
corrected petition, correction to the stoichiometric material
consumption equation in the original notice of filing, and requesting
comments was published in the Federal Register (89 FR 66175) on August
14, 2024. The Treasury Department and the IRS received no written
comments in response to the notice of filing and received one written
comment in response to the supplemental notice of filing, discussed
below. A public hearing was neither requested nor held.
The public comment submitted in response to the supplemental notice
of filing generally wrote in support of adding nylon 6 to the list of
taxable substances. However, the commenter requested that the Treasury
Department and the IRS add to the list of taxable substances the
categories `nylon resins' or `polyamides' rather than merely the single
taxable substance nylon 6. The commenter asserts that nylon 6 is one of
the many grades of nylons or polyamides which contain more than 20
percent of taxable chemicals.
At this time, the Treasury Department and the IRS decline to add
the additional categories of nylon resins and polyamides to the List,
as suggested by the commenter. The filed petition that is the subject
of this determination requested only to add the substance nylon 6 to
the List, so a comment that the Treasury Department and the IRS should
add additional substances to the List is outside the scope of the
determination for nylon 6. To request to add nylon resins and
polyamides to the List, an importer, exporter, or interested person
must follow the determination procedures provided under Rev. Proc.
2022-26, including submitting a petition for each substance with the
required information. See sections 4 and 6 of Rev. Proc. 2022-26.
The Secretary followed the process in section 4672(a)(2)(B) in
making the determination to add nylon 6 to the List. A review of the
stoichiometric material consumption equation in the corrected petition,
as provided in the supplemental notice of filing, and other information
in the petition shows that the taxable chemicals benzene, propylene,
ammonia, and methane constitute more than 20 percent by weight of the
materials used in the production of nylon 6, based on the predominant
method of production. Therefore, the test in section 4672(a)(2)(B) is
satisfied.
(4) Date of determination: August 1, 2025.
(5) Effective dates for addition of nylon 6 to the List:
(i) Effective date for purposes of the section 4671 tax (see
section 11.01 of Rev. Proc. 2022-26): January 1, 2026.
(ii) Effective date for purposes of refund claims under section
4662(e) (see sections 11.02 and 11.03 of Rev. Proc. 2022-26, as
modified by section 3 of Rev. Proc. 2023-20): July 1, 2022.
(6) Tax rate prescribed by the Secretary: $14.77 per ton. The
conversion factors for the taxable chemicals used in the production of
nylon 6 are 0.69 for benzene, 0.37 for propylene, 0.75 for ammonia, and
0.07 for methane. The tax rate is calculated by adding the products of
the conversion factor for each taxable chemical and the tax rate for
that taxable chemical: ((0.69 x $9.74) + (0.37 x $9.74) + (0.75 x
$5.28) + (0.07 x $6.88) = $14.77).
(b) Classification numbers.
(1) The Secretary has no basis to object to the following proposed
classification numbers:
(i) HTSUS number: 3908.10.00.
(ii) Schedule B number: 3908.10.0000.
(iii) CAS number: 25038-54-4.
(2) The Secretary is unable to confirm the following proposed
classification numbers: Not applicable.
V. Determination To Add Caprolactam to the List
AdvanSix Inc., an exporter of caprolactam, submitted a petition in
accordance with Rev. Proc. 2022-26 requesting to add caprolactam to the
List. According to the petition, caprolactam is made from the taxable
chemicals benzene, propylene, ammonia, methane, and sulfuric acid;
however, sulfuric acid is cancelled from the stoichiometric material
consumption equation due to no net consumption/production. The petition
also represented that the benzene, propylene, ammonia, and methane
constitute 46.64 percent by weight of the materials used to produce
caprolactam, based on the predominant method of production.
(a) Determination. Caprolactam is added to the list of taxable
substances under section 4672(a). Other pertinent information is as
follows:
(1) Predominant method of production: Caprolactam is produced by
first oxidizing cumene to yield phenol, which is then partially reduced
with hydrogen to yield cyclohexanone. Cyclohexanone is then reacted
with Raschig hydroxylamine to generate cyclohexanone oxime. The
cyclohexanone oxime undergoes Beckmann rearrangement in the presence of
fuming sulfuric acid (oleum) to give an intermediate material known as
rearrangement mass, which is subsequently hydrolyzed and then
neutralized with ammonia to yield [egr]-caprolactam.
(2) Stoichiometric material consumption equation:
C6H6 (benzene) + C3H6
(propylene) + 2.5 O2 (oxygen) + 0.5 CH4 (methane)
+ 5 NH3 (ammonia) + 2 H2O (water) + 2
SO2 (sulfur dioxide) [rarr] C6H11ON
([egr]- caprolactam) + C3H6O (acetone) +
2(NH4)2SO4 (ammonium sulfate) + 0.5
CO2 (carbon dioxide)
(3) Reasons for the determination: The caprolactam petition was
filed on November 8, 2023. The notice of filing summarizing the
petition and requesting comments was published in the Federal Register
(89 FR 13400) on February 22, 2024. The Treasury Department and the IRS
received no written comments in response to the notice of filing. A
public hearing was neither requested nor held.
The Secretary followed the process in section 4672(a)(2)(B) in
making this determination. A review of the stoichiometric material
consumption equation and other information in the petition shows that
the taxable chemicals benzene, propylene, ammonia, and methane
constitute more than 20 percent by weight of the materials used in the
production of caprolactam, based on the predominant method of
production. Therefore, the test in section 4672(a)(2)(B) is satisfied.
(4) Date of determination: August 1, 2025.
(5) Effective dates for addition of caprolactam to the List:
(i) Effective date for purposes of the section 4671 tax (see
section 11.01 of Rev. Proc. 2022-26): January 1, 2026.
(ii) Effective date for purposes of refund claims under section
4662(e) (see sections 11.02 and 11.03 of Rev. Proc. 2022-26, as
modified by section 3 of Rev. Proc. 2023-20): January 1, 2023.
(6) Tax rate prescribed by the Secretary: $14.77 per ton. The
conversion factors for the taxable chemicals used in the production of
caprolactam are 0.69 for benzene, 0.37 for propylene, 0.75 for ammonia,
and 0.07 for methane. The tax rate is calculated by adding the products
of the conversion factor for each taxable chemical and the tax rate for
that taxable chemical: ((0.69 x $9.74) + (0.37 x $9.74) + (0.75 x
$5.28) + (0.07 x $6.88) = $14.77).
(b) Classification numbers.
[[Page 36525]]
(1) The Secretary has no basis to object to the following proposed
classification numbers:
(i) HTSUS number: 2933.71.00.
(ii) Schedule B number: 2933.71.0000.
(iii) CAS number: 105-60-2.
(2) The Secretary is unable to confirm the following proposed
classification numbers: Not applicable.
VI. Determination To Add Methyl Ethyl Ketoxime to the List
AdvanSix Inc., an exporter of methyl ethyl ketoxime (commonly
referred to as MEKO), submitted a petition in accordance with Rev.
Proc. 2022-26 requesting to add methyl ethyl ketoxime to the List.
According to the petition, methyl ethyl ketoxime is made from the
taxable chemicals ammonia, sulfuric acid, and butylene; however,
sulfuric acid is cancelled from the stoichiometric material consumption
equation due to no net consumption/production. The petition further
represented that ammonia and butylene constitute 39.97 percent by
weight of the materials used to produce methyl ethyl ketoxime, based on
the predominant method of production.
(a) Determination. Methyl ethyl ketoxime is added to the list of
taxable substances under section 4672(a). Other pertinent information
is as follows:
(1) Predominant method of production: The conventional method was
developed in the late 1960s via a route that involves condensation of
methyl ethyl ketone with a hydroxylamine salt in the presence of a
base. More specifically, methyl ethyl ketone is oximated with Raschig
hydroxylamine to yield methyl ethyl ketoxime.
(2) Stoichiometric material consumption equation:
C4H8 (butylene) + 5 NH3 (ammonia) + 2
H2O (water) + 1.5 O2 (oxygen) + 2 SO2
(sulfur dioxide) [rarr] C4H9ON (methyl ethyl
ketoxime) + 2 (NH4)2SO4 (ammonium
sulfate) + H2 (hydrogen)
(3) Reasons for the determination: The methyl ethyl ketoxime
petition was filed on July 10, 2023. The notice of filing summarizing
the petition and requesting comments was published in the Federal
Register (88 FR 45454) on July 17, 2023. The Treasury Department and
the IRS received no written comments in response to the notice of
filing. A public hearing was neither requested nor held.
The Secretary followed the process in section 4672(a)(2)(B) in
making this determination. A review of the stoichiometric material
consumption equation and other information in the petition shows that
the taxable chemicals ammonia and butylene constitute more than 20
percent by weight of the materials used in the production of methyl
ethyl ketoxime, based on the predominant method of production.
Therefore, the test in section 4672(a)(2)(B) is satisfied.
(4) Date of determination: August 1, 2025.
(5) Effective dates for addition of methyl ethyl ketoxime to the
List:
(i) Effective date for purposes of the section 4671 tax (see
section 11.01 of Rev. Proc. 2022-26): January 1, 2026.
(ii) Effective date for purposes of refund claims under section
4662(e) (see sections 11.02 and 11.03 of Rev. Proc. 2022-26, as
modified by section 3 of Rev. Proc. 2023-20): January 1, 2023.
(6) Tax rate prescribed by the Secretary: $11.41 per ton. The
conversion factors for the taxable chemicals used in the production of
methyl ethyl ketoxime are 0.98 for ammonia and 0.64 for butylene. The
tax rate is calculated by adding the products of the conversion factor
for each taxable chemical and the tax rate for that taxable chemical:
((0.98 x $5.28) + (0.64 x $9.74) = $11.41).
(b) Classification numbers.
(1) The Secretary has no basis to object to the following proposed
classification numbers:
(i) HTSUS number: 2928.00.10.
(ii) Schedule B number: 2928.00.1000.
(iii) CAS number: 96-29-7.
(2) The Secretary is unable to confirm the following proposed
classification numbers: Not applicable.
VII. Determination To Add Iso-Butanol to the List
OQ Chemicals Corporation, an exporter of iso-butanol, submitted a
petition in accordance with Rev. Proc. 2022-26 requesting to add iso-
butanol to the List. According to the petition, the taxable chemicals
methane and propylene constitute 78.41 percent by weight of the
materials used to produce iso-butanol, based on the predominant method
of production.
(a) Determination. Iso-butanol is added to the list of taxable
substances under section 4672(a). Other pertinent information is as
follows:
(1) Predominant method of production: Iso-butanol is co-produced by
hydroformylation of propylene to produce both iso-butyraldehyde and n-
butyraldehyde followed by hydrogenation of the aldehyde intermediates
to the corresponding iso-butanol and n-butanol. The predominant method
of production is as follows:
(i) Partial oxidation of methane with oxygen to produce synthesis
gas, a mixture of carbon monoxide and hydrogen. This petitioner uses a
Partial Oxidation (POX) process that is non catalytic but operates at
>1300 deg C and >40 atm pressure. Thus, synthesis gas is produced from
methane and oxygen:
CH4 + \1/2\ O2 [rarr] CO + 2H2
(ii) Oxo process: Hydroformylation of propylene with carbon
monoxide and hydrogen over a catalyst to produce iso-butyraldehyde. The
reaction also produces normal butyraldehyde simultaneously; the
stoichiometry is the same for either the iso or the normal aldehyde.
Thus, iso-butyraldehyde is produced from propylene and syngas.
CO + H2 + CH2 =CH-CH3 [rarr]
(CH3)2-CH-CHO
(iii) Iso-butyraldehyde is hydrogenated with hydrogen over a
catalyst. Thus, iso-butanol is produced from iso-butyraldehyde and
hydrogen.
(CH3)2-CH-CHO + H2 [rarr]
(CH3)2CHCH2OH
(2) Stoichiometric material consumption equation:
CH4 (methane) + \1/2\ O2 + CH2 = CH-
CH3 (propylene) [rarr]
(CH3)2CHCH2OH (iso-butanol)
(3) Reasons for the determination: The iso-butanol petition was
filed on January 25, 2024. The notice of filing summarizing the
petition and requesting comments was published in the Federal Register
(89 FR 14558) on February 27, 2024. The Treasury Department and the IRS
received no written comments in response to the notice of filing. A
public hearing was neither requested nor held.
The Secretary followed the process in section 4672(a)(2)(B) in
making this determination. A review of the stoichiometric material
consumption equation and other information in the petition shows that
the taxable chemicals methane and propylene constitute more than 20
percent by weight of the materials used in the production of iso-
butanol, based on the predominant method of production. Therefore, the
test in section 4672(a)(2)(B) is satisfied.
(4) Date of determination: August 1, 2025.
(5) Effective dates for addition of iso-butanol to the List:
(i) Effective date for purposes of the section 4671 tax (see
section 11.01 of Rev. Proc. 2022-26): January 1, 2026.
(ii) Effective date for purposes of refund claims under section
4662(e) (see sections 11.02 and 11.03 of Rev. Proc. 2022-26, as
modified by section 3 of Rev. Proc. 2023-20): April 1, 2023.
(6) Tax rate prescribed by the Secretary: $7.07 per ton. The
conversion
[[Page 36526]]
factors for the taxable chemicals used in the production of iso-butanol
are 0.22 for methane and 0.57 for propylene. The tax rate is calculated
by adding the products of the conversion factor for each taxable
chemical and the tax rate for that taxable chemical: ((0.22 x $6.88) +
(0.57 x $9.74) = $7.07).
(b) Classification numbers.
(1) The Secretary has no basis to object to the following proposed
classification numbers:
(i) HTSUS number: 2905.14.50.10.
(ii) Schedule B number: 2905.14.5010.
(iii) CAS number: 78-83-1.
(2) The Secretary is unable to confirm the following proposed
classification numbers: Not applicable.
VIII. Determination To Add Diethylene Glycol Monomethyl Ether to the
List
The Dow Chemical Company, an exporter of diethylene glycol
monomethyl ether, submitted a petition in accordance with Rev. Proc.
2022-26 requesting to add diethylene glycol monomethyl ether to the
List. According to the petition, the taxable chemicals ethylene and
methane constitute 59.00 percent by weight of the materials used to
produce diethylene glycol monomethyl ether, based on the predominant
method of production.
(a) Determination. Diethylene glycol monomethyl ether is added to
the list of taxable substances under section 4672(a). Other pertinent
information is as follows:
(1) Predominant method of production: Glycol ethers are
predominantly produced by reacting an epoxide (typically ethylene oxide
or propylene oxide) with an alcohol; this reaction process is referred
to as alkoxylation. Diethylene glycol monomethyl ether
(C5H12O3) is produced by the
alkoxylation process using methanol (CH3OH) and 2
equivalents of ethylene oxide (C2H4O). Methanol
is made from syngas (carbon monoxide and dihydrogen). Carbon monoxide
(CO) and dihydrogen (H2) are made by steam-methane reforming
(CH4 and H2O). Ethylene oxide (EO) is made from
oxidizing ethylene (C2H4). Additional information
on the production process is as follows:
(i) The diethylene glycol monomethyl ether reaction (methanol + EO)
is base catalyzed, using a small amount of metal hydroxide to produce
methoxide. Since the amount of metal hydroxide used to produce
diethylene glycol monomethyl ether \3\ is very small, the metal
hydroxide has been excluded from the stoichiometric material
consumption equation; including the metal hydroxide would lead to a
distorted conversion factor.
---------------------------------------------------------------------------
\3\ The Notice of Filing erroneously stated, ``Since the amount
of metal hydroxide used to produce propylene glycol methyl ether . .
.'' This error is corrected here.
---------------------------------------------------------------------------
(ii) Once methoxide is made, it is regenerated following conversion
to the product in the presence of EO as follows:
(A) Methoxide + 2 EO [rarr] diethylene glycol monomethyl ether-
alkoxide.
(B) Diethylene glycol monomethyl ether-alkoxide + methanol [rarr]
diethylene glycol monomethyl ether + methoxide (goes back to
participate in the reaction above).
(iii) Regenerated methoxide in the presence of EO will perpetually
react until all EO is consumed or the reaction is halted through the
use of controls.
(2) Stoichiometric material consumption equation:
2 C2H4 (ethylene) + O2 (oxygen) +
CH4 (methane) + H2O (water) [rarr] H2
(hydrogen) + C5H12O3 (diethylene
glycol monomethyl ether)
(3) Reasons for the determination: The diethylene glycol monomethyl
ether petition was filed on June 13, 2024. The notice of filing
summarizing the petition and requesting comments was published in the
Federal Register (89 FR 71788) on September 3, 2024. The Treasury
Department and the IRS received no written comments in response to the
notice of filing. A public hearing was neither requested nor held.
The Secretary followed the process in section 4672(a)(2)(B) in
making this determination. A review of the stoichiometric material
consumption equation and other information in the petition shows that
the taxable chemicals ethylene and methane constitute more than 20
percent by weight of the materials used in the production of diethylene
glycol monomethyl ether, based on the predominant method of production.
Therefore, the test in section 4672(a)(2)(B) is satisfied.
(4) Date of determination: August 1, 2025.
(5) Effective dates for addition of diethylene glycol monomethyl
ether to the List:
(i) Effective date for purposes of the section 4671 tax (see
section 11.01 of Rev. Proc. 2022-26): January 1, 2026.
(ii) Effective date for purposes of refund claims under section
4662(e) (see sections 11.02 and 11.03 of Rev. Proc. 2022-26, as
modified by section 3 of Rev. Proc. 2023-20): July 1, 2022.
(6) Tax rate prescribed by the Secretary: $5.47 per ton. The
conversion factors for the taxable chemicals used in the production of
diethylene glycol monomethyl ether are 0.47 for ethylene and 0.13 for
methane. The tax rate is calculated by adding the products of the
conversion factor for each taxable chemical and the tax rate for that
taxable chemical: ((0.47 x $9.74) + (0.13 x $6.88) = $5.47).
(b) Classification numbers.
(1) The Secretary has no basis to object to the following proposed
classification numbers:
(i) HTSUS number: 2909.44.01.10.
(ii) Schedule B number: 2909.49.0000.
(iii) CAS number: 111-77-3.
(2) The Secretary is unable to confirm the following proposed
classification numbers: Not applicable.
IX. Determination To Add Ethylene Glycol Phenyl Ether to the List
The Dow Chemical Company, an exporter of ethylene glycol phenyl
ether, submitted a petition in accordance with Rev. Proc. 2022-26
requesting to add ethylene glycol phenyl ether to the List. According
to the petition, the taxable chemicals ethylene, benzene, and propylene
constitute 76.00 percent by weight of the materials used to produce
ethylene glycol phenyl ether, based on the predominant method of
production.
(a) Determination. Ethylene glycol phenyl ether is added to the
list of taxable substances under section 4672(a). Other pertinent
information is as follows:
(1) Predominant method of production: Glycol ethers are
predominantly produced by reacting an epoxide (typically ethylene oxide
or propylene oxide) with an alcohol; this reaction process is referred
to as alkoxylation. Ethylene glycol phenyl ether
(C8H10O2) is produced by the
alkoxylation process using phenol (CH3OH) and ethylene oxide
(C2H4O). Ethylene oxide is made by oxidizing
ethylene (C2H4). Phenol is made via the Hock
process (sometimes called the cumene process). The Hock process has two
stages. In stage 1, benzene (C6H6) is alkylated
with propylene (C3H6) to make cumene (isopropyl
benzene). In stage 2, cumene
(C6H5(C3H7)) is partially
oxidized to make phenol (C6H5OH) and side product
dimethyl ketone ((CH3)2CHO)).
(2) Stoichiometric material consumption equation:
C2H4 (ethylene) + 1.5 O2 (oxygen) +
C6H6 (benzene) + C3H6
(propylene) [rarr] C3H6O (dimethyl ketone) +
C8H10O2 (ethylene glycol phenyl ether)
(3) Reasons for the determination: The ethylene glycol phenyl ether
petition was filed on June 13, 2024. The notice of filing summarizing
the petition and requesting comments was published in
[[Page 36527]]
the Federal Register (89 FR 71785) on September 3, 2024. The Treasury
Department and the IRS received no written comments in response to the
notice of filing. A public hearing was neither requested nor held.
The Secretary followed the process in section 4672(a)(2)(B) in
making this determination. A review of the stoichiometric material
consumption equation and other information in the petition shows that
the taxable chemicals ethylene, benzene, and propylene constitute more
than 20 percent by weight of the materials used in the production of
ethylene glycol phenyl ether, based on the predominant method of
production. Therefore, the test in section 4672(a)(2)(B) is satisfied.
(4) Date of determination: August 1, 2025.
(5) Effective dates for addition of ethylene glycol phenyl ether to
the List:
(i) Effective date for purposes of the section 4671 tax (see
section 11.01 of Rev. Proc. 2022-26): January 1, 2026.
(ii) Effective date for purposes of refund claims under section
4662(e) (see sections 11.02 and 11.03 of Rev. Proc. 2022-26, as
modified by section 3 of Rev. Proc. 2023-20): July 1, 2022.
(6) Tax rate prescribed by the Secretary: $10.42 per ton. The
conversion factors for the taxable chemicals used in the production of
ethylene glycol phenyl ether are 0.20 for ethylene, 0.57 for benzene,
and 0.30 for propylene. The tax rate is calculated by adding the
products of the conversion factor for each taxable chemical and the tax
rate for that taxable chemical: ((0.20 x $9.74) + (0.57 x $9.74) +
(0.30 7 x $9.74) = $10.42).
(b) Classification numbers.
(1) The Secretary has no basis to object to the following proposed
classification numbers:
(i) Schedule B number: 2909.49.0000.
(ii) CAS number: 122-99-6
(2) The Secretary is unable to confirm the following proposed
classification number:
HTSUS number: 2909.49.60.00.
X. Determination To Add Methoxytriglycol to the List
The Dow Chemical Company, an exporter of methoxytriglycol,
submitted a petition in accordance with Rev. Proc. 2022-26 requesting
to add methoxytriglycol to the List. According to the petition, the
taxable chemicals ethylene and methane constitute 60.00 percent by
weight of the materials used to produce methoxytriglycol, based on the
predominant method of production.
(a) Determination. Methoxytriglycol is added to the list of taxable
substances under section 4672(a). Other pertinent information is as
follows:
(1) Predominant method of production: Glycol ethers are
predominantly produced by reacting an epoxide (typically ethylene oxide
or propylene oxide) with an alcohol; this reaction process is referred
to as alkoxylation. Methoxytriglycol
(C7H16O4) is produced by the
alkoxylation process using methanol (CH3OH) and 3
equivalents of ethylene oxide (C2H4O). Methanol
is made from syngas (carbon monoxide and dihydrogen). Carbon monoxide
(CO) and dihydrogen (H2) are made by steam-methane reforming
(CH4 and H2O). Ethylene oxide (EO) is made from
oxidizing ethylene (C2H4). Additional information
on the production process is as follows:
(i) The methoxytriglycol reaction (methanol + EO) is base
catalyzed, using a small amount of metal hydroxide to produce
methoxide. Since the amount of metal hydroxide used to produce
methoxytriglycol \4\ is very small, the metal hydroxide has been
excluded from the stoichiometric material consumption equation;
including the metal hydroxide would lead to a distorted conversion
factor.
---------------------------------------------------------------------------
\4\ The Notice of Filing erroneously stated, ``Since the amount
of metal hydroxide used to produce propylene glycol methyl ether. .
.'' This error is corrected here.
---------------------------------------------------------------------------
(ii) Once methoxide is made, it is regenerated following conversion
to the product in the presence of EO as follows:
(A) Methoxide + 3 EO [rarr] methoxytriglycol-alkoxide.
(B) Methoxytriglycol-alkoxide + methanol [rarr] methoxytriglycol +
methoxide (goes back to participate in the reaction above).
(iii) Regenerated methoxide in the presence of EO will perpetually
react until all EO is consumed or the reaction is halted through the
use of controls.
(2) Stoichiometric material consumption equation:
3 C2H4 (ethylene) + 1.5 O2 (oxygen) +
CH4 (methane) + H2O (water) [rarr] H2
(hydrogen) + C7H16O4
(methoxytriglycol)
(3) Reasons for the determination: The methoxytriglycol petition
was filed on June 13, 2024. The notice of filing summarizing the
petition and requesting comments was published in the Federal Register
(89 FR 71789) on September 3, 2024. The Treasury Department and the IRS
received no written comments in response to the notice of filing. A
public hearing was neither requested nor held.
The Secretary followed the process in section 4672(a)(2)(B) in
making this determination. A review of the stoichiometric material
consumption equation and other information in the petition shows that
the taxable chemicals ethylene and methane constitute more than 20
percent by weight of the materials used in the production of
methoxytriglycol, based on the predominant method of production.
Therefore, the test in section 4672(a)(2)(B) is satisfied.
(4) Date of determination: August 1, 2025.
(5) Effective dates for addition of methoxytriglycol to the List:
(i) Effective date for purposes of the section 4671 tax (see
section 11.01 of Rev. Proc. 2022-26): January 1, 2026.
(ii) Effective date for purposes of refund claims under section
4662(e) (see sections 11.02 and 11.03 of Rev. Proc. 2022-26, as
modified by section 3 of Rev. Proc. 2023-20): July 1, 2022.
(6) Tax rate prescribed by the Secretary: $5.66 per ton. The
conversion factors for the taxable chemicals used in the production of
methoxytriglycol are 0.51 for ethylene and 0.10 for methane. The tax
rate is calculated by adding the products of the conversion factor for
each taxable chemical and the tax rate for that taxable chemical:
((0.51 x $9.74) + (0.10 x $6.88) = $5.66).
(b) Classification numbers.
(1) The Secretary has no basis to object to the following proposed
classification numbers:
(i) HTSUS number: 2909.49.6000.
(ii) Schedule B number: 2922.17.0000.
(iii) CAS number: 112-35-6.
(2) The Secretary is unable to confirm the following proposed
classification numbers: Not applicable.
XI. Determination To Add Propylene Glycol Methyl Ether Acetate to the
List
The Dow Chemical Company, an importer and exporter of propylene
glycol methyl ether acetate, submitted a petition in accordance with
Rev. Proc. 2022-26 requesting to add propylene glycol methyl ether
acetate to the List. According to the petition, the taxable chemicals
propylene, chlorine, sodium hydroxide, and methane constitute 93.00
percent by weight of the materials used to produce propylene glycol
methyl ether acetate, based on the predominant method of production.
(a) Determination. Propylene glycol methyl ether acetate is added
to the list of taxable substances under section 4672(a). Other
pertinent information is as follows:
(1) Predominant method of production: Glycol ethers are
predominantly produced by reacting an epoxide (typically ethylene oxide
or propylene oxide) with an alcohol; this
[[Page 36528]]
reaction process is referred to as alkoxylation. Propylene glycol
methyl ether acetate is made by esterification of propylene glycol
methyl ether and acetic acid. Propylene glycol methyl ether is made via
the alkoxylation process (also known as ring opening of an epoxide)
using methanol and propylene oxide. Methanol is made from syngas
(carbon monoxide and dihydrogen). Carbon monoxide (CO) and dihydrogen
(H2) are made by steam-methane reforming (CH4 and
H2O). Propylene oxide is made by hydrochlorination (chlorine
(Cl2), propylene (C3H6), and sodium
hydroxide (NaOH)). Acetic acid is made via the carbonylation of
methanol with carbon monoxide. Additional information on the production
process is as follows:
(i) The propylene glycol methyl ether alkoxylation reaction
(methanol + propylene oxide) is base catalyzed, using a small amount of
metal hydroxide to produce methoxide. Once methoxide is made, it is
regenerated following conversion to the product in the presence of
propylene oxide. Regenerated methoxide in the presence of propylene
oxide will perpetually react until all propylene oxide is consumed or
the reaction is halted through the use of controls. Since the amount of
metal hydroxide used to produce propylene glycol methyl ether acetate
\5\ is very small, the metal hydroxide has been excluded from the
stoichiometric material consumption equation; including the metal
hydroxide would lead to a distorted conversion factor.
---------------------------------------------------------------------------
\5\ The Notice of Filing erroneously stated, ``Since the amount
of metal hydroxide used to produce propylene glycol methyl ether is
very small . . .'' This error is corrected here.
---------------------------------------------------------------------------
(ii) After the production of methanol from syngas, methanol is
reacted with CO to produce acetic acid. This process is commonly
referred to as carbonylation. The reaction is typically catalyzed by
either a rhodium or iridium-based catalyst and involves iodomethane as
a key intermediate.
(iii) Acetic acid when combined with propylene glycol methyl under
specific conditions (temperature, pressure, pH, etc.) produces
propylene glycol methyl ether acetate. This reaction is commonly known
as esterification (or Fischer esterification). Esterification typically
involves a basic or acid catalytic species and can generate water or an
aqueous hydroxide as byproduct depending on the pH. Once the final
reaction contents are dehydrated and separated, commercial grade
propylene glycol methyl ether acetate is obtained.
(2) Stoichiometric material consumption equation:
C3H6 (propylene) + Cl2 (chlorine) + 2
NaOH (sodium hydroxide) + 3 CH4 (methane) + H2O
(water) [rarr] 2 NaCl (sodium chloride) + 5 H2 (hydrogen) +
C6H12O3 (propylene glycol methyl ether
acetate)
(3) Reasons for the determination: The propylene glycol methyl
ether acetate petition was filed on June 13, 2024. The notice of filing
summarizing the petition and requesting comments was published in the
Federal Register (89 FR 71789) on September 3, 2024. The Treasury
Department and the IRS received no written comments in response to the
notice of filing. A public hearing was neither requested nor held.
The Secretary followed the process in section 4672(a)(2)(B) in
making this determination. A review of the stoichiometric material
consumption equation and other information in the petition shows that
the taxable chemicals propylene, chlorine, sodium hydroxide, and
methane constitute more than 20 percent by weight of the materials used
in the production of propylene glycol methyl ether acetate, based on
the predominant method of production. Therefore, the test in section
4672(a)(2)(B) is satisfied.
(4) Date of determination: August 1, 2025.
(5) Effective dates for addition of propylene glycol methyl ether
acetate to the List:
(i) Effective date for purposes of the section 4671 tax (see
section 11.01 of Rev. Proc. 2022-26): January 1, 2026.
(ii) Effective date for purposes of refund claims under section
4662(e) (see sections 11.02 and 11.03 of Rev. Proc. 2022-26, as
modified by section 3 of Rev. Proc. 2023-20): July 1, 2022.
(6) Tax rate prescribed by the Secretary: $8.85 per ton. The
conversion factors for the taxable chemicals used in the production of
propylene glycol methyl ether acetate are 0.32 for propylene, 0.54 for
chlorine, 0.61 for sodium hydroxide, and 0.36 for methane. The tax rate
is calculated by adding the products of the conversion factor for each
taxable chemical and the tax rate for that taxable chemical: ((0.32 x
$9.74) + (0.54 x $5.40) + (0.61 x $0.56) + (0.36 x $6.88) = $8.85).
(b) Classification numbers.
(1) The Secretary has no basis to object to the following proposed
classification numbers:
(i) HTSUS number: 2915.39.90.00.
(ii) Schedule B number: 2915.39.9500.
(iii) CAS number: 108-65-6.
(2) The Secretary is unable to confirm the following proposed
classification numbers: Not applicable.
XII. Determination To Add Propylene Glycol Methyl Ether to the List
The Dow Chemical Company, an importer and exporter of propylene
glycol methyl ether, submitted a petition in accordance with Rev. Proc.
2022-26 requesting to add propylene glycol methyl ether to the List.
According to the petition, the taxable chemicals propylene, chlorine,
sodium hydroxide, and methane constitute 100.00 percent by weight of
the materials used to produce propylene glycol methyl ether, based on
the predominant method of production.
(a) Determination. Propylene glycol methyl ether is added to the
list of taxable substances under section 4672(a). Other pertinent
information is as follows:
(1) Predominant method of production: Glycol ethers are
predominantly produced by reacting an epoxide (typically ethylene oxide
or propylene oxide) with an alcohol; this reaction process is referred
to as alkoxylation. Propylene glycol methyl ether is made via the
alkoxylation process (also known as ring opening of an epoxide) using
methanol and propylene oxide. Methanol is made from syngas (carbon
monoxide and dihydrogen). Carbon monoxide (CO) and dihydrogen
(H2) are made by steam-methane reforming (CH4 and
H2O). Propylene oxide is made by hydrochlorination (chlorine
(Cl2), propylene (C3H6), and sodium
hydroxide (NaOH)). Additional information on the production process is
as follows:
(i) The propylene glycol methyl ether alkoxylation reaction
(methanol + propylene oxide) is base catalyzed, using a small amount of
metal hydroxide to produce methoxide. Once methoxide is made, it is
regenerated following conversion to the product in the presence of
propylene oxide. Regenerated methoxide in the presence of propylene
oxide will perpetually react until all propylene oxide is consumed or
the reaction is halted through the use of controls.
(ii) Since the amount of metal hydroxide used to produce propylene
glycol methyl ether is very small, the metal hydroxide has been
excluded from the stoichiometric material consumption equation;
including the metal hydroxide would lead to a distorted conversion
factor.
(2) Stoichiometric material consumption equation:
C3H6 (propylene) + Cl2 (chlorine) + 2
NaOH (sodium hydroxide) + CH4 (methane) [rarr]
C4H10O2 (propylene
[[Page 36529]]
glycol methyl ether) + 2 NaCl (sodium chloride) + H2
(hydrogen)
(3) Reasons for the determination: The propylene glycol methyl
ether petition was filed on June 13, 2024. The notice of filing
summarizing the petition and requesting comments was published in the
Federal Register (89 FR 71784) on September 3, 2024. The Treasury
Department and the IRS received no written comments in response to the
notice of filing. A public hearing was neither requested nor held.
The Secretary followed the process in section 4672(a)(2)(B) in
making this determination. A review of the stoichiometric material
consumption equation and other information in the petition shows that
the taxable chemicals propylene, chlorine, sodium hydroxide, and
methane constitute more than 20 percent by weight of the materials used
in the production of propylene glycol methyl ether, based on the
predominant method of production. Therefore, the test in section
4672(a)(2)(B) is satisfied.
(4) Date of determination: August 1, 2025.
(5) Effective dates for addition of propylene glycol methyl ether
to the List:
(i) Effective date for purposes of the section 4671 tax (see
section 11.01 of Rev. Proc. 2022-26): January 1, 2026.
(ii) Effective date for purposes of refund claims under section
4662(e) (see sections 11.02 and 11.03 of Rev. Proc. 2022-26, as
modified by section 3 of Rev. Proc. 2023-20): July 1, 2022.
(6) Tax rate prescribed by the Secretary: $10.58 per ton. The
conversion factors for the taxable chemicals used in the production of
propylene glycol methyl ether are for 0.47 for propylene, 0.79 for
chlorine, 0.89 for sodium hydroxide, and 0.18 for methane. The tax rate
is calculated by adding the products of the conversion factor for each
taxable chemical and the tax rate for that taxable chemical: ((0.47 x
$9.74) + (0.79 x $5.40) + (0.89 x $0.56) + (0.18 x $6.88) = $10.58).
(b) Classification numbers.
(1) The Secretary has no basis to object to the following proposed
classification numbers:
(i) HTSUS number: 2909.49.6000.
(ii) Schedule B number: 2909.49.0000.
(iii) CAS number: 107-98-2.
(2) The Secretary is unable to confirm the following proposed
classification numbers: Not applicable.
XIII. Determination To Add Propylene Glycol N-Propyl Ether to the List
The Dow Chemical Company, an importer and exporter of propylene
glycol n-propyl ether, submitted a petition in accordance with Rev.
Proc. 2022-26 requesting to add propylene glycol n-propyl ether to the
List. According to the petition, the taxable chemicals propylene,
chlorine, sodium hydroxide, ethylene, and methane constitute 100.00
percent by weight of the materials used to produce propylene glycol n-
propyl ether, based on the predominant method of production.
(a) Determination. Propylene glycol n-propyl ether is added to the
list of taxable substances under section 4672(a). Other pertinent
information is as follows:
(1) Predominant method of production: Glycol ethers are
predominantly produced by reacting an epoxide (typically ethylene oxide
or propylene oxide) with an alcohol; this reaction process is referred
to as alkoxylation. Propylene glycol n-propyl ether is produced via the
alkoxylation process (also known as ring opening of an epoxide) using
n-propylene and propylene oxide. Propylene oxide is made by
hydrochlorination (chlorine, propylene, NaOH). The n-propanol is
manufactured by catalytic hydrogenation of propionaldehyde (hydrogen
(H2) + propionaldehyde (CH3CH2CHO)).
Propionaldehyde is produced by hydroformulation of ethylene
(C2H4) using carbon monoxide (CO). The n-propanol
is made by hydrogenating propionaldehyde in the presence of a catalyst.
Additional information on the production process is as follows:
(i) The propylene glycol n-propyl ether alkoxylation reaction (n-
propanol + propylene oxide) is base catalyzed, using a small amount of
metal hydroxide to produce methoxide. Once propoxide is made, it is
regenerated following conversion to the product in the presence of
propylene oxide. Regenerated propoxide in the presence of propylene
oxide will perpetually react until all propylene oxide is consumed or
the reaction is halted through the use of controls.
(ii) Since the amount of metal hydroxide used to produce propylene
glycol n-propyl ether is very small, the metal hydroxide has been
excluded from the stoichiometric material consumption equation;
including the metal hydroxide would lead to a distorted conversion
factor.
(2) Stoichiometric material consumption equation:
C3H6 (propylene) + Cl2 (chlorine) + 2
NaOH (sodium hydroxide) + C2H4 (ethylene) +
CH4 (methane) [rarr] 2 NaCl (sodium chloride) +
H2 (hydrogen) + C6H14O2
(propylene glycol n-propyl ether)
(3) Reasons for the determination: The propylene glycol n-propyl
ether petition was filed on June 13, 2024. The notice of filing
summarizing the petition and requesting comments was published in the
Federal Register (89 FR 71791) on September 3, 2024. The Treasury
Department and the IRS received no written comments in response to the
notice of filing. A public hearing was neither requested nor held.
The Secretary followed the process in section 4672(a)(2)(B) in
making this determination. A review of the stoichiometric material
consumption equation and other information in the petition shows that
the taxable chemicals propylene, chlorine, sodium hydroxide, ethylene,
and methane constitute more than 20 percent by weight of the materials
used in the production of propylene glycol n-propyl ether, based on the
predominant method of production. Therefore, the test in section
4672(a)(2)(B) is satisfied.
(4) Date of determination: August 1, 2025.
(5) Effective dates for addition of propylene glycol n-propyl ether
to the List:
(i) Effective date for purposes of the section 4671 tax (see
section 11.01 of Rev. Proc. 2022-26): January 1, 2026.
(ii) Effective date for purposes of refund claims under section
4662(e) (see sections 11.02 and 11.03 of Rev. Proc. 2022-26, as
modified by section 3 of Rev. Proc. 2023-20): July 1, 2022.
(6) Tax rate prescribed by the Secretary: $10.43 per ton. The
conversion factors for the taxable chemicals used in the production of
propylene glycol n-propyl ether are for 0.36 for propylene, 0.60 for
chlorine, 0.68 for sodium hydroxide, 0.24 for ethylene, and 0.14 for
methane. The tax rate is calculated by adding the products of the
conversion factor for each taxable chemical and the tax rate for that
taxable chemical: ((0.36 x $9.74) + (0.60 x $5.40) + (0.68 x $0.56) +
(0.24 x $9.74) + (0.14 x $6.88) = $10.43).
(b) Classification numbers.
(1) The Secretary has no basis to object to the following proposed
classification numbers:
(i) HTSUS number: 2909.49.60.00.
(ii) Schedule B number: 2909.49.0000.
(iii) CAS number: 1569-01-3.
(2) The Secretary is unable to confirm the following proposed
classification numbers: Not applicable.
XIV. Determination To Add Propylene Glycol Phenyl Ether to the List
The Dow Chemical Company, an importer and exporter of propylene
glycol phenyl ether, submitted a petition in accordance with Rev. Proc.
[[Page 36530]]
2022-26 requesting to add propylene glycol phenyl ether to the List.
According to the petition, the taxable chemicals propylene, chlorine,
sodium hydroxide, and benzene constitute 91.00 percent by weight of the
materials used to produce propylene glycol phenyl ether, based on the
predominant method of production.
(a) Determination. Propylene glycol phenyl ether is added to the
list of taxable substances under section 4672(a). Other pertinent
information is as follows:
(1) Predominant method of production: Glycol ethers are
predominantly produced by reacting an epoxide (typically ethylene oxide
or propylene oxide) with an alcohol; this reaction process is referred
to as alkoxylation. Propylene glycol phenyl ether is made via the
alkoxylation process (also known as ring opening of an epoxide) using
phenol and propylene oxide. Propylene oxide is made by
hydrochlorination (chlorine (Cl2), propylene
(C3H6), and sodium hydroxide (NaOH)). Phenol is
made via the Hock process (sometimes called the cumene process). The
Hock process has two stages. In stage 1, benzene
(C6H6) is alkylated with propylene
(C3H6) to make cumene (isopropyl benzene). In
stage 2, cumene
(C6H5(C3H7)) is partially
oxidized to make phenol (C6H5OH) and side product
dimethyl ketone ((CH3)2CHO). Additional
information on the production process is as follows:
(i) The propylene glycol phenyl ether alkoxylation reaction (phenol
+ propylene oxide) is base catalyzed, using a small amount of metal
hydroxide. Once phenoxide is made, it is regenerated following
conversion to the product in the presence of propylene oxide.
Regenerated phenoxide in the presence of propylene oxide will
perpetually react until all propylene oxide is consumed or the reaction
is halted through the use of controls.
(ii) Since the amount of metal hydroxide used to produce propylene
glycol phenyl ether is very small, the metal hydroxide has been
excluded from the stoichiometric material consumption equation;
including the metal hydroxide would lead to a distorted conversion
factor.
(2) Stoichiometric material consumption equation:
2 C3H6 (propylene) + Cl2 (chlorine) +
2 NaOH (sodium hydroxide) + C6H6 (benzene) +
O2 (oxygen) [rarr] 2 NaCl (sodium chloride) + H2O
(water) + (CH3)2CO (dimethyl ketone) +
C9H12O2 (propylene glycol phenyl
ether)
(3) Reasons for the determination: The propylene glycol phenyl
ether petition was filed on June 13, 2024. The notice of filing
summarizing the petition and requesting comments was published in the
Federal Register (89 FR 71786) on September 3, 2024. The Treasury
Department and the IRS received no written comments in response to the
notice of filing. A public hearing was neither requested nor held.
The Secretary followed the process in section 4672(a)(2)(B) in
making this determination. A review of the stoichiometric material
consumption equation and other information in the petition shows that
the taxable chemicals propylene, chlorine, sodium hydroxide, and
benzene constitute more than 20 percent by weight of the materials used
in the production of propylene glycol phenyl ether, based on the
predominant method of production. Therefore, the test in section
4672(a)(2)(B) is satisfied.
(4) Date of determination: August 1, 2025.
(5) Effective dates for addition of propylene glycol phenyl ether
to the List:
(i) Effective date for purposes of the section 4671 tax (see
section 11.01 of Rev. Proc. 2022-26): January 1, 2026.
(ii) Effective date for purposes of refund claims under section
4662(e) (see sections 11.02 and 11.03 of Rev. Proc. 2022-26, as
modified by section 3 of Rev. Proc. 2023-20): July 1, 2022.
(6) Tax rate prescribed by the Secretary: $13.16 per ton. The
conversion factors for the taxable chemicals used in the production of
propylene glycol phenyl ether are 0.55 for propylene, 0.47 for
chlorine, 0.53 for sodium hydroxide, and 0.51 for benzene. The tax rate
is calculated by adding the products of the conversion factor for each
taxable chemical and the tax rate for that taxable chemical: ((0.55 x
$9.74) + (0.47 x $5.40) + (0.53 x $0.56) + (0.51 x $9.74) = $13.16).
(b) Classification numbers.
(1) The Secretary has no basis to object to the following proposed
classification numbers:
(i) HTSUS number: 2909.49.15.00.
(ii) Schedule B number: 2909.49.0000.
(iii) CAS number: 770-35-4.
(2) The Secretary is unable to confirm the following proposed
classification numbers: Not applicable.
XV. Determination To Add Di-Isobutyl Carbinol to the List
ALTIVIA Ketones & Additives, LLC, an exporter of di-isobutyl
carbinol, submitted a petition in accordance with Rev. Proc. 2022-26
requesting to add di-isobutyl carbinol to the List. According to the
petition, the taxable chemical propylene constitutes 87.51 percent by
weight of the materials used to produce di-isobutyl carbinol, based on
the predominant method of production.
(a) Determination. Di-isobutyl carbinol is added to the list of
taxable substances under section 4672(a). Other pertinent information
is as follows:
(1) Predominant method of production: The predominant method of
production is aldol condensation of acetone. Aldol condensation is a
two-step process in which an aldol reaction forms an aldol product and
a dehydration reaction removes water to form the final product. The
process uses acetone in condensation, dehydration, and hydrogenation
steps. Acetone is passed over a strong base catalyst to form diacetone
alcohol, then dehydrated to mesityl oxide, and subsequently
hydrogenated to methyl isobutyl ketone. Generally, the process forms
co-produced methyl isobutyl ketone, methyl isobutyl carbinol, di-
isobutyl ketone and, to a lesser extent, di-isobutyl carbinol.
(2) Stoichiometric material consumption equation:
3(C3H6 (propylene)) + H2O [rarr]
C9H20O (di-isobutyl carbinol)
(3) Reasons for the determination: The di-isobutyl carbinol
petition was filed on September 23, 2024. The notice of filing
summarizing the petition and requesting comments was published in the
Federal Register (89 FR 94878) on November 29, 2024. The Treasury
Department and the IRS received no written comments in response to the
notice of filing. A public hearing was neither requested nor held.
The Secretary followed the process in section 4672(a)(2)(B) in
making this determination. A review of the stoichiometric material
consumption equation and other information in the petition shows that
the taxable chemical propylene constitutes more than 20 percent by
weight of the materials used in the production of di-isobutyl carbinol,
based on the predominant method of production. Therefore, the test in
section 4672(a)(2)(B) is satisfied.
(4) Date of determination: August 1, 2025.
(5) Effective dates for addition of di-isobutyl carbinol to the
List:
(i) Effective date for purposes of the section 4671 tax (see
section 11.01 of Rev. Proc. 2022-26): January 1, 2026.
(ii) Effective date for purposes of refund claims under section
4662(e) (see sections 11.02 and 11.03 of Rev. Proc. 2022-26, as
modified by section 3 of Rev. Proc. 2023-20): January 1, 2024.
(6) Tax rate prescribed by the Secretary: $8.57 per ton. The
conversion
[[Page 36531]]
factor for the propylene used in the production of di-isobutyl carbinol
is 0.88. The tax rate is calculated by multiplying the conversion
factor by the tax rate for propylene (0.88 x $9.74 = $8.57).
(b) Classification numbers.
(1) The Secretary has no basis to object to the following proposed
classification numbers:
(i) HTSUS number: 2905.19.9090.
(ii) Schedule B number: 2905.19.9095.
(iii) CAS number: 108-82-7.
(2) The Secretary is unable to confirm the following proposed
classification numbers: Not applicable.
XVI. Determination To Add Di-Isobutyl Ketone to the List
ALTIVIA Ketones & Additives, LLC, an exporter of di-isobutyl
ketone, submitted a petition in accordance with Rev. Proc. 2022-26
requesting to add di-isobutyl ketone to the List. According to the
petition, the taxable chemical propylene constitutes 87.51 percent by
weight of the materials used to produce di-isobutyl ketone, based on
the predominant method of production.
(a) Determination. Di-isobutyl ketone is added to the list of
taxable substances under section 4672(a). Other pertinent information
is as follows:
(1) Predominant method of production: The predominant method of
production is aldol condensation of acetone. Aldol condensation is a
two-step process in which an aldol reaction forms an aldol product and
a dehydration reaction removes water to form the final product. The
process uses acetone in condensation, dehydration, and hydrogenation
steps. Acetone is passed over a strong base catalyst to form diacetone
alcohol, then dehydrated to mesityl oxide, and subsequently
hydrogenated to methyl isobutyl ketone. Generally, the process forms
co-produced methyl isobutyl ketone, methyl isobutyl carbinol, di-
isobutyl ketone and, to a lesser extent, di-isobutyl carbinol.
(2) Stoichiometric material consumption equation:
3(C3H6 (propylene)) + H2O [rarr]
C9H18O (di-isobutyl ketone) + H2
(3) Reasons for the determination: The di-isobutyl ketone petition
was filed on September 23, 2024. The notice of filing summarizing the
petition and requesting comments was published in the Federal Register
(89 FR 94879) on November 29, 2024. The Treasury Department and the IRS
received no written comments in response to the notice of filing. A
public hearing was neither requested nor held.
The Secretary followed the process in section 4672(a)(2)(B) in
making this determination. A review of the stoichiometric material
consumption equation and other information in the petition shows that
the taxable chemical propylene constitutes more than 20 percent by
weight of the materials used in the production of di-isobutyl ketone,
based on the predominant method of production. Therefore, the test in
section 4672(a)(2)(B) is satisfied.
(4) Date of determination: August 1, 2025.
(5) Effective dates for addition of di-isobutyl ketone to the List:
(i) Effective date for purposes of the section 4671 tax (see
section 11.01 of Rev. Proc. 2022-26): January 1, 2026.
(ii) Effective date for purposes of refund claims under section
4662(e) (see sections 11.02 and 11.03 of Rev. Proc. 2022-26, as
modified by section 3 of Rev. Proc. 2023-20): January 1, 2024.
(6) Tax rate prescribed by the Secretary: $8.67 per ton. The
conversion factor for the propylene used in the production of di-
isobutyl ketone is 0.89. The tax rate is calculated by multiplying the
conversion factor by the tax rate for propylene: (0.89 x $9.74 =
$8.67).
(b) Classification numbers.
(1) The Secretary has no basis to object to the following proposed
classification numbers:
(i) HTSUS number: 2914.19.0000.
(ii) Schedule B number: 2914.19.0000.
(iii) CAS number: 108-83-8.
(2) The Secretary is unable to confirm the following proposed
classification numbers: Not applicable.
XVII. Determination To Add Methyl Isobutyl Carbinol to the List
ALTIVIA Ketones & Additives, LLC, an exporter of methyl isobutyl
carbinol, submitted a petition in accordance with Rev. Proc. 2022-26
requesting to add methyl isobutyl carbinol to the List. According to
the petition, the taxable chemical propylene constitutes 82.36 percent
by weight of the materials used to produce methyl isobutyl carbinol,
based on the predominant method of production.
(a) Determination. Methyl isobutyl carbinol is added to the list of
taxable substances under section 4672(a). Other pertinent information
is as follows:
(1) Predominant method of production: The predominant method of
production is aldol condensation of acetone. Aldol condensation is a
two-step process in which an aldol reaction forms an aldol product and
a dehydration reaction removes water to form the final product. The
process uses acetone in condensation, dehydration, and hydrogenation
steps. Acetone is passed over a strong base catalyst to form diacetone
alcohol, then dehydrated to mesityl oxide, and subsequently
hydrogenated to methyl isobutyl ketone. Generally, the process forms
co-produced methyl isobutyl ketone, methyl isobutyl carbinol, di-
isobutyl ketone and, to a lesser extent, di-isobutyl carbinol.
(2) Stoichiometric material consumption equation:
2(C3H6 (propylene)) + H2O [rarr]
C6H14O (methyl isobutyl carbinol)
(3) Reasons for the determination: The methyl isobutyl carbinol
petition was filed on September 23, 2024. The notice of filing
summarizing the petition and requesting comments was published in the
Federal Register (89 FR 94877) on November 29, 2024. The Treasury
Department and the IRS received no written comments in response to the
notice of filing. A public hearing was neither requested nor held.
The Secretary followed the process in section 4672(a)(2)(B) in
making this determination. A review of the stoichiometric material
consumption equation and other information in the petition shows that
the taxable chemical propylene constitutes more than 20 percent by
weight of the materials used in the production of methyl isobutyl
carbinol, based on the predominant method of production. Therefore, the
test in section 4672(a)(2)(B) is satisfied.
(4) Date of determination: August 1, 2025.
(5) Effective dates for addition of methyl isobutyl carbinol to the
List:
(i) Effective date for purposes of the section 4671 tax (see
section 11.01 of Rev. Proc. 2022-26): January 1, 2026
(ii) Effective date for purposes of refund claims under section
4662(e) (see sections 11.02 and 11.03 of Rev. Proc. 2022-26, as
modified by section 3 of Rev. Proc. 2023-20): January 1, 2024
(6) Tax rate prescribed by the Secretary: $7.99 per ton. The
conversion factor for the propylene used in the production of methyl
isobutyl carbinol is 0.82. The tax rate is calculated by multiplying
the conversion factor by the tax rate for propylene: (0.82 x $9.74 =
$7.99).
(b) Classification numbers.
(1) The Secretary has no basis to object to the following proposed
classification numbers:
(i) HTSUS number: 2905.19.9090.
(ii) Schedule B number: 2905.19.9095.
(iii) CAS number: 108-11-2.
(2) The Secretary is unable to confirm the following proposed
classification numbers: Not applicable.
XVIII. Determination To Add Cyanuric Acid to the List
Occidental Chemical Corporation, an interested person in cyanuric
acid,
[[Page 36532]]
submitted a petition in accordance with Rev. Proc. 2022-26 requesting
to add cyanuric acid to the List. According to the petition, the
taxable chemical ammonia constitutes 27.90 percent by weight of the
materials used to produce cyanuric acid, based on the predominant
method of production.
(a) Determination. Cyanuric acid is added to the list of taxable
substances under section 4672(a). Other pertinent information is as
follows:
(1) Predominant method of production: The predominant process for
the manufacture of cyanuric acid is using urea thermal decomposition to
produce cyanuric acid.
(2) Stoichiometric material consumption equation:
3 NH3 (ammonia) + 3 CO2 (carbon dioxide) [rarr]
C3N3O3H3 (cyanuric acid) +
3 H2O (water)
(3) Reasons for the determination: The cyanuric acid petition was
filed on November 25, 2024. The notice of filing summarizing the
petition and requesting comments was published in the Federal Register
(90 FR 7246) on January 21, 2025. The Treasury Department and the IRS
received one written comment, discussed below, in response to the
notice of filing. A public hearing was neither requested nor held.
The commenter asserts that the notice did not give a reason to add
the substance to the List and inquires ``[w]hy would a long-term
product be added . . . if it's already in production at a chemical
plant for distribution.'' It is not clear to the Treasury Department
and the IRS what is the significance of a ``long-term product.''
Regardless, the commenter did not demonstrate that cyanuric acid does
not meet the weight or value test under section 4672(a)(2)(B). Under
section 4672(a)(2)(b) and (4) and (b)(2), the Secretary is required to
add a substance to the List if the Secretary determines that any
taxable chemicals used to produce the substance meet the weight or
value test. The petition represented and the Secretary determined that
a taxable chemical constitutes more than 20 percent by weight of the
materials used in the production of cyanuric acid, based on the
predominant method of production. For this reason, the Treasury
Department and the IRS decline to adopt any change to this
determination based on the public comment.
The Secretary followed the process in section 4672(a)(2)(B) in
making this determination. A review of the stoichiometric material
consumption equation and other information in the petition shows that
the taxable chemical ammonia constitutes more than 20 percent by weight
of the materials used in the production of cyanuric acid, based on the
predominant method of production. Therefore, the test in section
4672(a)(2)(B) is satisfied.
(4) Date of determination: August 1, 2025.
(5) Effective dates for addition of cyanuric acid to the List:
(i) Effective date for purposes of the section 4671 tax (see
section 11.01 of Rev. Proc. 2022-26): January 1, 2026.
(ii) Effective date for purposes of refund claims under section
4662(e) (see sections 11.02 and 11.03 of Rev. Proc. 2022-26, as
modified by section 3 of Rev. Proc. 2023-20): October 1, 2024.
(6) Tax rate prescribed by the Secretary: $2.11 per ton. The
conversion factor for the ammonia used in the production of cyanuric
acid is 0.40. The tax rate is calculated by multiplying the conversion
factor by the tax rate for ammonia: (0.40 x $5.28 = $2.11).
(b) Classification numbers.
(1) The Secretary has no basis to object to the following proposed
classification numbers:
(i) HTSUS number: 2933.69.6050.
(ii) Schedule B number: 2933.69.0000.
(iii) CAS number: 108-80-5.
(2) The Secretary is unable to confirm the following proposed
classification numbers: Not applicable.
XIX. Determination To Add Potassium Bicarbonate to the List
Occidental Chemical Corporation, an exporter of potassium
bicarbonate, submitted a petition in accordance with Rev. Proc. 2022-26
requesting to add potassium bicarbonate to the List. According to the
petition, the taxable chemical potassium hydroxide constitutes 56.04
percent by weight of the materials used to produce potassium
bicarbonate, based on the predominant method of production.
(a) Determination. Potassium bicarbonate is added to the list of
taxable substances under section 4672(a). Other pertinent information
is as follows:
(1) Predominant method of production: The predominant process for
the manufacture of potassium bicarbonate is absorption of
CO2 with potassium hydroxide. The predominant process for
carbonate manufacture is absorption of CO2 with alkaline
liquid. This substance is produced as a pure component, not a mixture.
(2) Stoichiometric material consumption equation:
CO2 (carbon dioxide) + KOH (potassium hydroxide) [rarr]
HKCO3 (potassium bicarbonate)
(3) Reasons for the determination: The potassium bicarbonate
petition was filed on November 25, 2024. The notice of filing
summarizing the petition and requesting comments was published in the
Federal Register (90 FR 7245) on January 21, 2025. The Treasury
Department and the IRS received no written comments in response to the
notice of filing. A public hearing was neither requested nor held.
The Secretary followed the process in section 4672(a)(2)(B) in
making this determination. A review of the stoichiometric material
consumption equation and other information in the petition shows that
the taxable chemical potassium hydroxide constitutes more than 20
percent by weight of the materials used in the production of potassium
bicarbonate, based on the predominant method of production. Therefore,
the test in section 4672(a)(2)(B) is satisfied.
(4) Date of determination: August 1, 2025.
(5) Effective dates for addition of potassium bicarbonate to the
List:
(i) Effective date for purposes of the section 4671 tax (see
section 11.01 of Rev. Proc. 2022-26): January 1, 2026.
(ii) Effective date for purposes of refund claims under section
4662(e) (see sections 11.02 and 11.03 of Rev. Proc. 2022-26, as
modified by section 3 of Rev. Proc. 2023-20): July 1, 2022.
(6) Tax rate prescribed by the Secretary: $0.25 per ton. The
conversion factor for the potassium hydroxide used in the production of
potassium bicarbonate is 0.56. The tax rate is calculated by
multiplying the conversion factor by the tax rate for potassium
hydroxide: (0.56 x $0.44 = $0.25).
(b) Classification numbers.
(1) The Secretary has no basis to object to the following proposed
classification numbers:
(i) HTSUS number: 2836.40.2000.
(ii) Schedule B number: 2836.40.0000.
(iii) CAS number: 298-14-6.
(2) The Secretary is unable to confirm the following proposed
classification numbers: Not applicable.
XX. Determination To Add Potassium Carbonate to the List
Occidental Chemical Corporation, an exporter of potassium
carbonate, submitted a petition in accordance with Rev. Proc. 2022-26
requesting to add potassium carbonate to the List. According to the
petition, the taxable chemical potassium hydroxide constitutes 71.83
percent by weight of the materials used to produce potassium carbonate,
based on the predominant method of production.
(a) Determination. Potassium carbonate is added to the list of
taxable
[[Page 36533]]
substances under section 4672(a). Other pertinent information is as
follows:
(1) Predominant method of production: The predominant process for
the manufacture of potassium carbonate is absorption of CO2
with KOH. The predominant process for carbonate manufacture is
absorption of CO2 with alkaline liquid. This substance is
produced as a pure component, not a mixture.
(2) Stoichiometric material consumption equation:
CO2 (carbon dioxide) + 2 KOH (potassium hydroxide)
[rarr] K2CO3 (potassium carbonate) +
H2O (water)
(3) Reasons for the determination: The potassium carbonate petition
was filed on November 25, 2024. The notice of filing summarizing the
petition and requesting comments was published in the Federal Register
(90 FR 7247) on January 21, 2025. The Treasury Department and the IRS
received two written comments, discussed below, in response to the
notice of filing. A public hearing was neither requested nor held.
One public comment asserted that potassium carbonate does ``not
pose any significant health or environmental risks,'' objected to the
weight or value test of section 4672(a)(2)(B), and urged the Secretary
to exercise discretion when determining whether a substance poses a
significant danger that warrants imposing the tax under section 4671.
Another public comment inquired about the effects of potassium
carbonate and asserted that ``[t]he most important thing is to avoid
any type of exposure to the chemical as it can cause severe damage.''
Neither comment demonstrated whether potassium carbonate meets the
weight or value test under section 4672(a)(2)(B). Under section
4672(a)(2)(b) and (4) and (b)(2), the Secretary is required to add a
substance to the List if the Secretary determines that any taxable
chemicals used to produce the substance meet the weight or value test.
Congress did not give the Secretary discretion to determine whether a
substance poses significant health or environmental risks or otherwise
poses a significant danger. The petition represented and the Secretary
determined that a taxable chemical constitutes more than 20 percent by
weight of the materials used in the production of potassium carbonate,
based on the predominant method of production. For this reason, the
Treasury Department and the IRS decline to adopt the suggestions of
these public comments.
The Secretary followed the process in section 4672(a)(2)(B) in
making this determination. A review of the stoichiometric material
consumption equation and other information in the petition shows that
the taxable chemical potassium hydroxide constitutes more than 20
percent by weight of the materials used in the production of potassium
carbonate, based on the predominant method of production. Therefore,
the test in section 4672(a)(2)(B) is satisfied.
(4) Date of determination: August 1, 2025.
(5) Effective dates for addition of potassium carbonate to the
List:
(i) Effective date for purposes of the section 4671 tax (see
section 11.01 of Rev. Proc. 2022-26): January 1, 2026.
(ii) Effective date for purposes of refund claims under section
4662(e) (see sections 11.02 and 11.03 of Rev. Proc. 2022-26, as
modified by section 3 of Rev. Proc. 2023-20): July 1, 2022.
(6) Tax rate prescribed by the Secretary: $0.36 per ton. The
conversion factor for the potassium hydroxide used in the production of
potassium carbonate is 0.81. The tax rate is calculated by multiplying
the conversion factor by the tax rate for potassium hydroxide: (0.81 x
$0.44 = $0.36).
(b) Classification numbers.
(1) The Secretary has no basis to object to the following proposed
classification numbers:
(i) HTSUS number: 2836.40.1000.
(ii) Schedule B number: 2836.40.0000.
(iii) CAS number: 584-08-7.
(2) The Secretary is unable to confirm the following proposed
classification numbers: Not applicable.
XXI. Determination To Add Sodium Chlorite to the List
Occidental Chemical Corporation, an exporter of sodium chlorite,
submitted a petition in accordance with Rev. Proc. 2022-26 requesting
to add sodium chlorite to the List. According to the petition, the
taxable chemicals chlorine and sodium hydroxide constitute 75.87
percent by weight of the materials used to produce sodium chlorite,
based on the predominant method of production.
(a) Determination. Sodium chlorite is added to the list of taxable
substances under section 4672(a). Other pertinent information is as
follows:
(1) Predominant method of production: The predominant process for
the manufacture of sodium chlorite is electrolytic production of
NaClO3 followed by hydrochlorination with wet acid with
byproduct chlorine and hydrogen used in the manufacture of acid. This
substance is produced as a pure component, not a mixture, though it may
be sold as an aqueous liquid.
(2) Stoichiometric material consumption equation:
2 Cl2 (chlorine) + 4 NaOH (sodium hydroxide) + 3
O2 (oxygen) [rarr] 4 NaClO2 (sodium chlorite) + 2
H2O (water)
(3) Reasons for the determination: The sodium chlorite petition was
filed on November 25, 2024. The notice of filing summarizing the
petition and requesting comments was published in the Federal Register
(90 FR 7247) on January 21, 2025. The Treasury Department and the IRS
received no written comments in response to the notice of filing. A
public hearing was neither requested nor held.
The Secretary followed the process in section 4672(a)(2)(B) in
making this determination. A review of the stoichiometric material
consumption equation and other information in the petition shows that
the taxable chemicals chlorine and sodium hydroxide constitute more
than 20 percent by weight of the materials used in the production of
sodium chlorite, based on the predominant method of production.
Therefore, the test in section 4672(a)(2)(B) is satisfied.
(4) Date of determination: August 1, 2025.
(5) Effective dates for addition of sodium chlorite to the List:
(i) Effective date for purposes of the section 4671 tax (see
section 11.01 of Rev. Proc. 2022-26): January 1, 2026.
(ii) Effective date for purposes of refund claims under section
4662(e) (see sections 11.02 and 11.03 of Rev. Proc. 2022-26, as
modified by section 3 of Rev. Proc. 2023-20): July 1, 2022.
(6) Tax rate prescribed by the Secretary: $2.35 per ton. The
conversion factors for the taxable chemicals used in the production of
sodium chlorite are 0.39 for chlorine and 0.44 for sodium hydroxide.
The tax rate is calculated by adding the products of the conversion
factor for each taxable chemical and the tax rate for that taxable
chemical: (0.39 x $5.40 + 0.44 x $0.56 = $2.35).
(b) Classification numbers.
(1) The Secretary has no basis to object to the following proposed
classification numbers:
(i) HTSUS number: 2828.90.0000.
(ii) Schedule B number: 2828.90.0000.
(iii) CAS number: 7758-19-2.
(2) The Secretary is unable to confirm the following proposed
classification numbers: Not applicable.
Correction to the List of Taxable Substances
Section 4 of Notice 2021-66 includes in the initial list of taxable
substances the taxable substance ``sodium nitriolotriacetate
monohydrate.'' There is a typographical error in the spelling of this
taxable substance. The correct name of this taxable substance is
[[Page 36534]]
``sodium nitrilotriacetate monohydrate.'' The tax rate for sodium
nitrilotriacetate monohydrate was not previously provided by the
Secretary. The tax rate prescribed by the Secretary for sodium
nitrilotriacetate monohydrate is $3.97 per ton. The conversion factors
for the taxable chemicals used in the production of sodium
nitrilotriacetate monohydrate are 0.25 for ammonia, 0.35 for methane,
and 0.44 for sodium hydroxide. The tax rate is calculated by adding the
products of the conversion factor for each taxable chemical and the tax
rate for that taxable chemical: ((0.25 x $5.28) + (0.35 x $6.88) +
(0.44 x $0.56) = $3.97). This tax rate is effective July 1, 2022.
Effect on Other Documents
Section 4 of Notice 2021-66 is modified by replacing the name
``sodium nitriolotriacetate monohydrate'' with ``sodium
nitrilotriacetate monohydrate.''
Krishna P. Vallabhaneni,
Tax Legislative Counsel.
[FR Doc. 2025-14705 Filed 8-1-25; 8:45 am]
BILLING CODE 4830-01-P