PFAS Cleanup Act
Sponsored By: Representative Sánchez, Linda T. [D-CA-38]
Introduced
Summary
A 45% excise tax on PFAS paired with a tax credit to push more cleanup of contaminated public water systems. The bill would tax PFAS sales by manufacturers, producers, or importers and create a 25% tax credit for qualified PFAS removal at publicly owned or operated water systems.
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- Manufacturers and importers: Would pay an excise tax equal to 45% of the integrated sale price when they sell or first use PFAS. Self-use is treated as a sale at fair market value.
- Public water systems and utilities: Would be eligible for a nonrefundable tax credit equal to 25% of qualified PFAS water remediation expenditures for publicly owned or operated systems. The credit is part of the general business credit and can be processed using elective payment rules in the tax code.
- Communities and drinking-water users: The credit targets cleanup when PFAS exceed the Environmental Protection Agency's Safe Drinking Water Act maximum contaminant level, aiming to support removal where contamination is hazardous.
The bill directs the Treasury Secretary, working with EPA, to issue regulations to implement the rules and takes effect for taxable years beginning after December 31, 2026.
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Bill Overview
Analyzed Economic Effects
2 provisions identified: 1 benefits, 1 costs, 0 mixed.
Tax credit for PFAS water cleanup
If you own or operate a public water system and PFAS levels exceed the EPA limit, you would be able to claim a tax credit. The credit would equal 25% of qualified PFAS water remediation expenditures paid or incurred in the taxable year. "Hazardously excessive" means PFAS above the EPA-promulgated maximum contaminant level and you would need to demonstrate that to the Secretary. The credit would be part of the general business credit, eligible for elective payment, and would apply for taxable years beginning after December 31, 2026, with Treasury and EPA writing rules.
Higher PFAS tax for makers
If you make or import PFAS, you would pay a new excise tax equal to 45% of the sale price. If you make, produce, or import PFAS and then use it yourself, that use would be treated as a sale at fair market value and taxed. The tax would apply to PFAS made in or brought into the United States and would not follow Puerto Rico or Virgin Islands disposition rules. The tax would apply for taxable years beginning after December 31, 2026, and the Treasury Secretary, with EPA, would write rules to implement it.
Sponsors & CoSponsors
Sponsor
Sánchez, Linda T. [D-CA-38]
CA • D
Cosponsors
Davis (IL)
IL • D
Sponsored 5/12/2026
Rep. Kamlager-Dove, Sydney [D-CA-37]
CA • D
Sponsored 5/13/2026
Roll Call Votes
No roll call votes available for this bill.
View on Congress.gov