The Renewed Superfund Tax
Don’t lose out on a refund
When did the Superfund Tax start?
The Superfund Tax began in 1980 to address numerous toxic waste incidents over the previous five years. Then, it expired in the 1990s.
In 2021, President Biden reinstated the Comprehensive Environmental Response Compensation and Liability Act when signing the Infrastructure Bill, taking effect in July 2022 and continuing for 10 years. The Infrastructure Bill of 2021 significantly changed the 1980s version of the tax, lowering the threshold from at least 50% of chemicals in IRC section 4662 down to 20%.
That means, your chemical substance could qualify as taxable if the taxable chemicals listed equal more than 20% of the weight or 20% of the value of the materials to produce.
What does this Superfund Federal Excise Tax cover?
Back in the 80s, the tax managed the cleanup of the nation’s worst hazardous waste sites and respond to significant environmental emergencies. The EPA is responsible for protecting the public from toxic chemicals, so the Superfund FET covers those remediation costs.
Who qualifies for
Since the CBP is not involved in this tax, the importer or manufacturer/producer of the qualified goods is responsible for paying the tax at the time of the first sale.
Qualified goods include
42 taxable chemicals
151 taxable substances
The number of taxable substances changes as items are added or removed from the list.
If you’re wondering whether your product qualifies, contact CITTA to walk you through the Superfund Tax process.
Opportunities for Refunds!
The good news is there are opportunities for refunds in this program. If you are the exporter of record for the taxable chemical, or you exported a final product incorporating the taxable chemical, then you qualify for a credit or refund.
Even if you are the importer of record but not the final exporter, you may qualify for reimbursement when the exporter files for a refund.
The IRS does not currently allow a refund for chemicals bought domestically and then exported. But at CITTA brokerage, we comb through your documentation to get you the best possible refund.
How CITTA gets your
maximum refund available
It’s our job to stay completely current on the Superfund Tax situation, so qualifying clients can receive the full allowable credit or refund.
The statute of limitations on Superfund refunds is three years, so we ensure your taxes are recouped in a timely manner in the exact method required by the IRS.
Our personalized process ensures you get the full, qualified amount possible, and we complete all the forms so nothing is missed.
And remember: we don’t get paid until you get paid.