House bill would erase Superfund chemical tax back to January 2024

What does this do?

HR 640 would eliminate a federal excise tax on certain industrial chemicals and chemical-based substances. The repeal would be retroactive to January 1, 2024, meaning companies would be treated as if the tax never applied from that date. The bill was introduced in January 2025 and is currently before the House Ways and Means Committee.

Who does it affect?

Chemical manufacturers, importers, and industries that use large amounts of industrial chemicals — including plastics, petroleum, and manufacturing companies — are most directly affected. Americans who live near Superfund cleanup sites may also be affected by changes to program funding.

Why does it matter?

The tax being repealed was originally created to fund the Superfund program, which pays for cleaning up heavily polluted sites across the country. Removing the tax would reduce dedicated revenue for that program, potentially affecting its capacity to fund environmental cleanup.

What does it cost, and who pays?

• Tax funds Superfund cleanup program
• Repeal retroactive to Jan. 1, 2024
• No dollar figure specified in bill

Where does it stand?