Published
March 26, 2025
The reinstatement of the Superfund excise tax on 42 critical chemicals, minerals, and metallic elements under the Infrastructure Investment and Jobs Act of 2021 has imposed significant financial and regulatory burdens on the U.S. petrochemical manufacturing sector.
Fill me in: This tax increases production costs, disrupts supply chains, and places American businesses at a competitive disadvantage compared to foreign competitors, including China. The increased costs are ultimately passed down to consumers, affecting the affordability of everyday household goods such as medical supplies, building materials, electronics, and personal care products.
By the numbers:
- The tax, which had expired in 1995, was reinstated at twice its original rates, costing the industry $1 billion annually.
- Repealing this tax could potentially increase chemical industry output by over $300 million per year, benefiting downstream industries and strengthening supply chain resilience.
Why it matters: A strong domestic chemical industry is crucial for maintaining economic growth, national security, and energy security. However, the rising costs and regulatory uncertainty discourage investment, threatening America’s manufacturing leadership.
The Chemical Tax Repeal Act of 2025 (H.R. 640, S615), led by Rep. Beth Van Duyne and Sen. Ted Cruz, aims to eliminate these taxes.
Our recommendation: Congress is urged to act swiftly to enact this legislation, protect U.S. manufacturing, and ensure the resilience of American supply chains.
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