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IRS Announces Implementation of Increased Hazardous Substance Superfund Tax

Date: 03/29/2023
Type: Implementation of IRA

On May 1, 2023, the Treasury announced that it was  increasing the Hazardous Substance Superfund tax rate, as mandated by IRA section 13601. Crude oil and imported petroleum products being received at U.S. refineries, as well as those entering the U.S. for consumption or warehousing are subject to a semimonthly excise tax. The Superfund tax applies starting January 1, 2023 and imposes a tax of $0.164 per barrel for 2023 (a rate indexed annually for inflation). The announcement includes information on implementation, including an explanation on a safe harbor rule and how much affected companies will be expected to pay.

Opportunities for Participation and Additional Resources:

https://www.irs.gov/businesses/small-businesses-self-employed/petroleum-tax-crude-oil-exports-reinstatement-of-hazardous-substance-superfund-financing-rate

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