WASHINGTON (November 17, 2023) — The American Chemistry Council (ACC) issued the following statement from President and CEO Chris Jahn in response to House introduction of the Chemical Tax Repeal Act by Representatives Beth Van Duyne (R-TX), Mike Carey (R-OH) and Carol Miller (R-WV). A Senate bill was introduced earlier this year.
“We welcome House introduction of the Chemical Tax Repeal Act and commend Representatives Van Duyne, Carey and Miller for their action on this critical issue for the U.S. economy. Estimates by the Joint Committee on Taxation indicate these taxes could result in a nearly $15 billion hit to the economy over the next decade.
“The Bipartisan Infrastructure Law (BIL) imposed Superfund excise taxes on 42 chemicals, critical minerals, and metallic elements – materials used in manufactured goods. These taxes will affect chemical supply chains and markets and will lead to higher costs for consumers. A recent IRS hearing affirmed their broad impacts on industries including fertilizer, farming, energy production, and manufacturing.
“As a result of these misguided taxes, U.S. manufacturing competitiveness is further threatened by countries like China. The taxes single out the chemical industry at a time when supply chain challenges and new proposed restrictions from the Biden administration pose significant challenges for the business of chemistry and our industry’s ability to create products that are important to national priorities.
“ACC supports ongoing efforts to reverse these harmful tax provisions that are making it more difficult for American chemistry to be a driver of U.S. investment and job creation. We look forward to additional Members of Congress joining this initiative.”