IRA Section 13601 – Reinstatement of Superfund

Section 13601 of the IRA increases the tax imposed crude oil received at a U.S. refinery, and petroleum products entered into the U.S. for consumption, use, or warehousing under 26 U.S.C. § 4611. That section imposes a tax rate equal to the sum of the “Hazardous Substance Superfund financing rate” and the “Oil Spill Liability Trust Fund financing rate.” Prior to enactment of the IRA, the Hazardous Substance Superfund financing rate was set at 9.7 cents per barrel. Section 13601 increases the rate to 16.4 cents per barrel and requires that, starting in 2024, the rate to be adjusted for inflation. Amounts collected via the Hazardous Substance Superfund finance rate are used to Superfund projects (i.e., projects for the cleanup of toxic wastes).