Bills · HR 640
IN COMMITTEE· 119TH CONGRESS
House BillHR 640Taxation
Chemical Tax Repeal Act
INTRO JAN 22· LAST ACTION JAN 22
READING
1MIN
COSPONSORS
9
READER REACTIONS0 TOTAL
NO VOTES YET · BE THE FIRST
- Introduced only
LEGISLATIVE PROGRESS
STEP 2 / 8Introduced
In Committee
Reported
Passed House
Passed Senate
Conference
To President
Became Law
WHAT THE BILL DOES
AI-writtenThis bill matters because it directly impacts the cost of doing business for chemical companies and, by extension, many other industries that use chemicals in their products. If these taxes are repealed, it could lead to lower production costs for a wide range of goods, from plastics and fertilizers to medicines and cleaning supplies, potentially benefiting consumers through lower prices.
However, these specific excise taxes have historically been a significant source of funding for the Superfund program, which pays for the cleanup of hazardous waste sites across the country. If the taxes are repealed without an alternative funding source, it could reduce the money available for these critical environmental cleanups, potentially slowing down efforts to address pollution and protect public health. The decision on this bill will weigh economic impacts on businesses against the funding needs for environmental remediation.
KEY PROVISIONS
4AI-extractedPROVISION 01
The bill completely eliminates subchapters B and C of Chapter 38 of the Internal Revenue Code of 1986.
This is the core action, as these subchapters contain the legal framework for the excise taxes on taxable chemicals and substances.
PROVISION 02
It repeals the excise taxes on 'taxable chemicals' which are specific basic chemicals listed in the tax code.
This directly reduces the tax burden on companies that produce or import these foundational chemical components.
PROVISION 03
It also repeals excise taxes on 'taxable substances,' which are products that are made primarily from or contain a significant amount of the taxable chemicals.
This extends the tax relief beyond basic chemicals to many derivative products, affecting a broader range of industries.
PROVISION 04
The repeal of these taxes is made effective retroactively to January 1, 2024.
This means the tax relief would apply to transactions that occurred before the bill's potential enactment, potentially requiring refunds or adjustments for taxes already paid.
SPONSORSHIP
1 + 9
R· Texas
YRS IN OFFICE
5
BILLS LED
48
COSPONSOR BREAKDOWNBIPARTISAN · 0%
DEM 0 REP 9 IND 0
ACTION TIMELINE
2 EVENTSJAN 22
Introduced in House
JAN 22
Referred to the House Committee on Ways and Means.
BILL INFO
TypeHouse Bill
NumberHR 640
Congress119th
StatusIn Committee
IntroducedJan 22, 2025
Last actionJan 22, 2025
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IN COMMITTEE· 119TH CONGRESS · WAYS AND MEANS COMMITTEE · INTRODUCED JAN 22, 2025
House BillHR 640Taxation
Chemical Tax Repeal Act
INTRODUCED JAN 22, 2025· LAST ACTION JAN 22, 2025
PASSAGE CHANCES
—%
READING
1 min
COSPONSORS
9
COMPLEXITY
Moderate
