PFAS Cleanup Act

(1) PFAS pollution results in significant health harms and social costs, including—

(A) an estimated annual cost as high as $60,000,000,000 with respect to the impact of such pollution on health, and

(B) an estimated cost of between $7,000,000 and $30,000,000 per pound of such pollution with respect to its removal from drinking water.

(2) Raising revenues to partially address the significant costs resulting from PFAS pollution would complement other avenues for addressing such costs, including regulatory efforts by States and communities to hold PFAS polluters accountable.

Chapter 38 of the Internal Revenue Code of 1986 is amended by adding at the end the following new subchapter:

There is hereby imposed a tax on any perfluoroalkyl or polyfluoroalkyl substance sold by the manufacturer, producer, or importer thereof.

The amount of tax imposed by subsection (a) shall be equal to 45 percent of the price for which the perfluoroalkyl or polyfluoroalkyl substance is sold.

For purposes of this subchapter—

The term perfluoroalkyl or polyfluoroalkyl substance means any man-made chemical—

(A) with at least one fully fluorinated carbon atom, and

(B) which is manufactured or produced in the United States or entered into the United States for consumption, use, or warehousing.

The term United States has the meaning given such term by section 4612(a)(4).

The term importer means the person entering the perfluoroalkyl or polyfluoroalkyl substance for consumption, use, or warehousing.

If any person manufactures, produces, or imports any perfluoroalkyl or polyfluoroalkyl substance and uses such substance, then such person shall be liable for tax under section 4691 in the same manner as if such substance were sold by such person (at a price equal to the fair market value of such substance).

The provisions of subsections (a)(3) and (b)(3) of section 7652 shall not apply to any tax imposed by section 4691.

The Secretary, in consultation with the Administrator of the Environmental Protection Agency, shall prescribe such regulations or other guidance as may be necessary or appropriate to carry out the purposes of this subchapter.

The table of subchapters for chapter 38 of such Code is amended by adding after the item relating to subchapter D the following new item:

The amendments made by this section shall apply with respect to taxable years beginning after December 31, 2026.

Subpart D of part IV of subchapter A of chapter 1 of the Internal Revenue Code of 1986 is amended by adding at the end the following new section:

For purposes of section 38, the PFAS water remediation credit for any taxable year is an amount equal to 25 percent of the qualified PFAS water remediation expenditures paid or incurred by the taxpayer during the taxable year.

For purposes of this section—

The term qualified PFAS water remediation expenditures means, with respect to any public water system owned or operated by the taxpayer, any expenditures paid or incurred by such taxpayer for the removal of any perfluoroalkyl or polyfluoroalkyl substance the presence of which within such public water system is hazardously excessive.

For purposes of paragraph (1), the presence of any perfluoroalkyl or polyfluoroalkyl substance within a public water system shall be treated as hazardously excessive if the taxpayer establishes to the satisfaction of the Secretary that the presence of such substance is in excess of the maximum contaminant level (as defined in section 1401(3) of the Safe Drinking Water Act) promulgated by the Administrator of the Environmental Protection Agency for such substance pursuant to section 1412 of the Safe Drinking Water Act.

The term public water system has the meaning given such term by section 1401(4) of the Safe Drinking Water Act. Such term shall include any surface water system or ground water system.

The term perfluoroalkyl or polyfluoroalkyl substance means any man-made chemical with at least one fully fluorinated carbon atom.

Rules similar to the rules of paragraph (1) of section 41(f) shall apply for purposes of this section.

The Secretary, in consultation with the Administrator of the Environmental Protection Agency, shall prescribe such regulations or other guidance as may be necessary or appropriate to carry out the purposes of this section.

Section 38(b) of such Code is amended by striking plus at the end of paragraph (40), by striking the period at the end of paragraph (41) and inserting, plus, and by adding at the end the following new paragraph:

(42) the PFAS water remediation credit determined under section 45BB(a).

Section 6417(b) of such Code is amended by redesignating paragraphs (10) through (12) as paragraphs (11) through (13), respectively, and by inserting after paragraph (9) the following new paragraph:

(10) The PFAS water remediation credit determined under section 45BB(a).

The table of sections for subpart D of part IV of subchapter A of chapter 1 of such Code is amended by adding after the item relating to section 45AA the following new item:

The amendments made by this section shall apply with respect to taxable years beginning after December 31, 2026.