WHAT ARE SUPERFUND TAX CREDITS?
The Superfund law (P.L. 177-58) reauthorizes Superfund with expanded provisions of doubled rates on Taxable Chemicals, and a vast expansion of Taxable Substances.
WHAT IS THE NEW SUPERFUND LAW?
Why is it Called Superfund?
The term “Superfund” refers to chemical excise taxes imposed by the IRS on certain domestically produced and imported chemicals, and imported substances. In order to pay for the provisions in The Infrastructure Investment and Jobs Act (also referred to as the Bipartisan Infrastructure Bill), Superfund was reinstated with double the tax rate on chemicals and a vast expansion of substances. As a result, large and small companies alike who produce or import these chemicals or substances are about to be slammed with additional costs. Charter Brokerage can help you mitigate the Superfund taxes paid on these taxable chemicals.
It started with the Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA) of 1980–1986. This legislation provided a federal “Superfund” to clean up hazardous-waste sites and accidents, spills, or other emergency releases of pollutants and contaminants into the environment. This initiative came to be commonly known as the “Superfund” Excise Tax on Chemicals. The Superfund Amendments and Reauthorization Act (SARA) of 1986–1995 expanded the program’s scope.
HOW ARE SUPERFUND TAXES RELEVANT NOW?
What You Need to Know About the New Superfund Law
The Infrastructure Investment and Jobs Act included the reauthorization of the Superfund law (P.L. 177-58) and was signed on November 15, 2021. The reauthorization doubled the tax rates on taxable chemicals, vastly expanded listed taxable substances, and increased the cap size of the trust fund.
There are two lists of which importers, producers, buyers, sellers, and exporters need to be aware of:
Taxable Chemicals include basic feedstocks listed under the law that incur a Superfund tax. Taxable Substances are items that use taxable chemicals to create a final product
While the final taxable substance list and exact rates have yet to be finalized, costs will be calculated by weight or value of the contained taxable chemical. (Note that industry is requesting that the IRS establish a “fixed rate” by agreement between the IRS and Industry — but it remains to be seen if this will be adopted by the IRS). An alternative liability is a 10% tariff of the import value. Additional substances may be added if the weight or value of the substances is greater than 20% of the contained taxable chemical.
CAN I GET A RETURN ON SUPERFUND EXCISE TAXES?
Importers, Manufacturers, and Exporters Can All Be Eligible for a Return on Superfund Excise Taxes
This new tax does not need to add additional costs to your products. Any taxable chemical or substance also qualifies for a Superfund Tax Credit. These credits are accrued when a taxable chemical or taxable substance is exported.
A Superfund tax is imposed when a taxable chemical is imported, or is domestically produced for sale or use unless an exemption applies. Superfund is also imposed when a taxable substance is imported for consumption, use, or warehousing. Exporters that export either a taxable chemical or taxable substance generate Superfund credits. These Superfund tax credits can be taken by either the importer, the manufacturer, or the exporter, depending on the commercial agreements that have been established among those parties.
MAXIMIZING SUPERFUND TAX CREDITS WITH CHARTER
Your Superfund Tax Credit Experts
Charter is different from tax teams because we don’t just focus on compliance — we also find the credits your company qualifies to receive. Charter Brokerage is the only company that will work with the client through the entire process of maximizing your credits. Charter will compile all required documentation, submit summary details for credit to the appropriate entity, and maintain all the necessary documentation for credits, all while providing complete confidentiality in third-party situations. In addition, our guarantee ensures that we will even defend such claims under audit.
No other Superfund tax refund service provider has the experience of Charter Brokerage. If you have any questions regarding Superfund tax credits, contact us at inquiries@charterbrokerage.net, and one of our Superfund tax credit experts will assist you.
