As you may be aware, the Infrastructure Investment and Jobs Act, signed into law on November 15, 2021, reinstated and significantly increased the Superfund Excise Tax (“SFET”) that previously expired in 1995. The revised SFET went into effect on July 1, 2022.
The SFET is imposed on the sale or use of 42 listed chemicals (“Taxable Chemicals”) manufactured or produced in the United States, or imported into the United States for consumption, use or warehousing. In addition, the SFET is imposed on certain chemicals and chemical substances (“Taxable Substances”) imported into the United States for consumption, use or warehousing that contain certain amounts of Taxable Chemicals as direct or indirect raw materials.
Our Company sells numerous Taxable Chemicals and Taxable Substances. Therefore, effective August 1, 2022, we will pass on the applicable costs associated with the SFET amount for the products you purchase. For your reference, the SFET for acrylic acid and esters are as follows:
Certain exceptions and exemptions to the SFET may apply. Documentation of the qualifying exemption will be the responsibility of our customers. For questions on tax exceptions, exemptions, or refunds, we encourage you to contact your tax advisor.
Thank you for your understanding as we work to implement this new tax event.