ACC Letter to the IRS Regarding Excise Tax on Stock Repurchases 

ACC appreciates the opportunity to provide comments on Notice 2023-2 (the Notice) regarding section 4501, a one percent excise tax on repurchases of corporate stock (the Excise Tax), which was enacted as part of the Inflation Reduction Act. The Excise Tax applies to the fair market value of any stock repurchased by a U.S. corporation that is traded on a securities exchange. In the case of foreign-headquartered corporation, the Excise Tax applies to a purchase from third parties of foreign-parent stock by a U.S. corporation or partnership that is more than 50% owned, directly or indirectly, by such foreign parent.

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American Chemistry Council

The American Chemistry Council (ACC) represents the leading companies engaged in the multibillion-dollar business of chemistry. ACC members apply the science of chemistry to make innovative products, technologies and services that make people's lives better, healthier and safer. ACC is committed to improved environmental, health, safety and security performance through Responsible Care®; common sense advocacy addressing major public policy issues; and health and environmental research and product testing. ACC members and chemistry companies are among the largest investors in research and development, and are advancing products, processes and technologies to address climate change, enhance air and water quality, and progress toward a more sustainable, circular economy.

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