Sponsors (5)
Creates a PFAS excise tax and a 25% tax credit for qualified PFAS water remediation expenses at public water systems exceeding EPA PFAS limits.
The bill creates dedicated revenues and a targeted tax credit to accelerate PFAS cleanup and protect drinking water, but does so at the cost of higher burdens on consumers and governments, potential budgetary tradeoffs, and risks that polluters may not fully bear remediation costs.
State and local communities, and the general public, gain a dedicated revenue stream (via fees/taxes on PFAS production/imports and related measures) to fund PFAS cleanup and prevention, which can reduce drinking-water contamination and lower health-related costs.
Owners/operators of public water systems receive a tax credit equal to 25% of qualifying PFAS remediation costs (made part of the general business credit and eligible for elective payment), lowering their net remediation expenses and helping target cleanup where PFAS exceed federal safety levels.
By highlighting high per-pound removal costs, the bill supports prioritizing prevention and source-control policies that may be more cost-effective than downstream treatment.
Households and consumers may face higher costs — through higher taxes, fees, water rates, or higher prices from businesses that pass along new PFAS-related costs.
Municipal and state governments could face large projected cleanup costs that strain budgets and force tradeoffs with other public services or infrastructure projects.
If public revenues (taxes/fees/credits) are used instead of strict polluter-pays enforcement, polluters may face weaker incentives to fully fund or prevent contamination, reducing accountability for contamination harms.
Based on analysis of 4 sections of legislative text.
Official title: To amend the Internal Revenue Code of 1986 to impose an excise tax on the sale of perfluoroalkyl or polyfluoroalkyl substances, to establish a credit for expenditures paid or incurred for the removal of such substances from public water systems, and for other purposes.
Introduced April 30, 2026 by Linda T. Sánchez · Last progress April 30, 2026
Imposes a new federal PFAS excise tax and creates a nonrefundable tax credit equal to 25% of qualified PFAS water remediation expenditures for public water systems that exceed EPA’s PFAS maximum contaminant level. The tax and credit are added to the Internal Revenue Code and take effect for taxable years beginning after December 31, 2026. The measure defines key terms (PFAS, public water system, qualified expenditures), applies controlled-group rules, makes the credit part of the general business credit and eligible for elective payment, and directs Treasury—working with EPA—to write implementing regulations.