Chemical Tax Repeal Act
Sponsored By: Senator Cruz, Ted [R-TX]
Introduced
Summary
Repeal of federal excise taxes on certain chemicals and substances. This bill would remove subchapters B and C from Chapter 38 of the Internal Revenue Code, ending the excise tax regime that applied to the chemicals and substances covered by those subchapters and taking effect January 1, 2025.
Show full summary
- Chemical manufacturers and importers: Would no longer be subject to the federal excise taxes that applied to the taxable chemicals and substances in subchapters B and C, effective January 1, 2025.
- Downstream businesses and processors: Buyers of those formerly taxed chemicals would see the federal excise tax removed from those specific inputs, changing how those inputs are taxed at the federal level.
- Federal tax code and administration: The bill removes the statutory entries and authorities for those excise tax provisions by striking subchapters B and C and their table entries, with no transition rules or new programs included.
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Bill Overview
Analyzed Economic Effects
1 provisions identified: 1 benefits, 0 costs, 0 mixed.
Repeal federal chemical excise taxes
If enacted, this bill would strike subchapters B and C of Chapter 38 of the Internal Revenue Code. That would stop federal excise taxes on certain chemicals and taxable substances starting January 1, 2025. Producers, importers, distributors, and buyers of those chemicals would no longer pay those federal excise taxes. This could lower costs for affected businesses and might reduce prices for some consumers.
Sponsors & CoSponsors
Sponsor
Cruz, Ted [R-TX]
TX • R
Cosponsors
Sen. Kennedy, John [R-LA]
LA • R
Sponsored 2/18/2025
Sen. Cornyn, John [R-TX]
TX • R
Sponsored 2/18/2025
Sen. Barrasso, John [R-WY]
WY • R
Sponsored 2/18/2025
Sen. Lee, Mike [R-UT]
UT • R
Sponsored 2/18/2025
Markwayne Mullin
OK • R
Sponsored 3/14/2025
Sen. Ernst, Joni [R-IA]
IA • R
Sponsored 4/28/2025
Sen. Cassidy, Bill [R-LA]
LA • R
Sponsored 6/12/2025
Roll Call Votes
No roll call votes available for this bill.
View on Congress.gov