May 2009 – Possible Reinstatement of Superfund Tax

The Facts:
The EPA’s budget proposal that was submitted by the Obama administration reveals plans to reinstate the Superfund taxes which expired in 1995.

Representative Frank Pallone (D-NJ) introduced the Superfund Polluter Pays Act of 2009 (H.R.) 832) in the House of Representatives on February 3. The act would impose the following taxes:

  • a chemical feedstock excise tax on 42 chemicals ranging from $0.22 – $4.87 per ton
  • a corporate “environmental income tax” of 0.12% on taxable income in excess of $2 million
  • a tax of $0.97 cents per barrel on petroleum

President Obama expects the tax to generate more than $1 billion for cleanups. Companies would not begin paying until 2011 when the economy is expected to be recovered.

How will my company be affected?
While there have been no projections published to indicate the cost this tax will have on individual companies, the tables below outline the amount of tax generated by each industry in 1993. Costs have been calculated to 2009 prices to account for inflation.

Superfund Corporate Environmental Income

Table 1. Taxes in 1993 by Industrial Sector

Source: Prepared by CRS with data from the U.S. Department of the Treasury. Internal Revenue Service. Source Book, Statistics of Income, 1993: Corporation Income Tax Returns with Accounting Periods ended July 1993 – June 1994. Publication 1053 (Revised March 1996). 511 p.

Table 2. Taxes in 1993 by Industrial Industry

Source: Prepared by CRS with data from the U.S. Department of the Treasury. Internal Revenue Service. Source Book, Statistics of Income, 1993: Corporation Income Tax Returns with Accounting Periods ended July 1993 – June 1994. Publication 1053 (Revised March 1996). 511 p.

What can I do to be prepared for this reinstatement?

  • familiarize yourself with the taxes and calculate how they could financially impact your company
  • begin to think about other ways your company may be impacted
  • formulize a plan on how you will manage this reinstated expense
  • be prepared to answer questions from your superiors or board membersEHS Support is monitoring developments of this tax reinstatement and will keep you updated on advancements.Questions about how these tax increases may affect your company can be discussed with Andy Patz at 412-215-7703 or Andy.Patz@EHS-Support.com.

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