Sponsors (8)
The bill eliminates specific excise taxes, delivering tax and compliance relief to businesses and consumers while reducing federal revenue and regulatory tools and potentially increasing environmentally harmful activity.
Taxpayers, businesses, and utilities will no longer owe the specified Chapter 38 subchapter B and C excise taxes after Jan 1, 2025, reducing their direct tax burden on affected products.
Businesses and the Treasury/IRS will face lower compliance and administrative costs because the bill removes the need to collect and account for these specific excise taxes.
Federal government and taxpayers: federal tax revenue will decline to the extent those excise taxes previously raised funds, potentially increasing deficits or requiring cuts to programs or other tax increases.
Consumers and public health/environment: removing excise taxes that may have discouraged use of certain harmful chemicals could increase consumption and associated environmental or health externalities.
Treasury/IRS and regulators: the government will lose a targeted taxation tool for specific chemicals, reducing policy flexibility to influence behavior or raise revenue from particular products.
Based on analysis of 2 sections of legislative text.
Introduced February 18, 2025 by Rafael Edward Cruz · Last progress February 18, 2025
Repeals federal excise-tax provisions that apply to certain chemicals by removing subchapters B and C of Chapter 38 of the Internal Revenue Code, with the repeal taking effect January 1, 2025. The change eliminates statutory excise taxes on the covered chemical products as of that date and requires no new authorizations or spending. The repeal reduces tax obligations for manufacturers, distributors, and users of the affected chemicals, may lower prices for downstream buyers, and will reduce federal excise-tax revenue unless replaced by other measures. Administrative and compliance updates will be needed to reflect the removed tax provisions.