Sponsors (6)
The bill channels new PFAS-related taxes and a targeted remediation tax credit to prioritize and fund cleanup of contaminated drinking water—reducing health risks for communities—but shifts costs onto taxpayers, businesses, and government budgets and may leave some small systems with limited benefit.
Residents of affected communities (urban and rural) and water customers: drinking water with PFAS above EPA limits will be prioritized for remediation, lowering contamination and potential health-related costs.
State and local governments and taxpayers: the bill creates a dedicated revenue stream (including a tax on PFAS production/imports) to fund PFAS cleanup, prevention, and public-health responses.
Public water system owners/operators and utilities: a tax credit equal to 25% of qualifying PFAS remediation costs (made part of the general business credit and eligible for elective payment) lowers net remediation expenses and lets some entities monetize the benefit.
Households, homeowners, renters and consumers: higher taxes, fees, water rates, or business price increases related to PFAS taxes or recovery of remediation costs could raise household costs.
State and local governments and municipal budgets: large projected PFAS cleanup costs could strain budgets and force tradeoffs with other services or infrastructure projects.
Polluters and affected communities: shifting funding toward public revenue (rather than full polluter-paid remediation) risks weakening incentives for polluters to fully internalize cleanup costs.
Based on analysis of 4 sections of legislative text.
Imposes a PFAS excise tax and creates a 25% tax credit for qualified PFAS drinking-water remediation expenditures by public water systems.
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 excise tax on PFAS and creates a nonrefundable tax credit equal to 25% of qualified PFAS water remediation expenditures for owners/operators of public water systems where PFAS exceed EPA maximum contaminant levels. The tax and the remediation credit are added to the Internal Revenue Code and take effect for taxable years beginning after December 31, 2026. The measure defines PFAS and eligible remediation spending, applies controlled-group rules, directs Treasury (in consultation with EPA) to issue implementing regulations, treats the credit as part of the general business credit, and allows an elective payment option under existing tax code procedures for certain taxpayers.