No Taxation on PFAS Remediation Act

Part III of subchapter B of chapter 1 of the Internal Revenue Code of 1986 is amended by inserting after section 139L the following new section:

In the case of an individual, gross income shall not include any amounts received by the taxpayer during the taxable year which are attributable to a reimbursement for remediation of contamination by a perfluoroalkyl or polyfluoroalkyl substance.

If the period of limitation on a credit or refund resulting from the amendment made by subsection (a) expires before the end of the 1-year period beginning on the date of the enactment of this Act, refund or credit of such overpayment (to the extent attributable to such amendments) may, nevertheless, be made or allowed if claim therefor is filed before the close of such 1-year period.

The table of sections for such part III is amended by inserting after the item relating to section 139L the following new item:

The amendments made by this section shall apply to reimbursements made in taxable years beginning after December 31, 2020.