Title 26, Internal Revenue CodeRelease 119-110
§4672 Definitions and Special Rules
Title 26 › Subtitle D — Miscellaneous Excise Taxes › CHAPTER 38 — ENVIRONMENTAL TAXES › Subchapter C — Tax on Certain Imported Substances › § 4672
Summary
Names which chemicals count as taxable substances for this tax. A substance is taxable if it is on the official list or if the Treasury Secretary finds that taxable chemicals make up more than 20% of its weight or value when made. If an importer or exporter asks to add or remove a substance, the Secretary must decide within 180 days. An initial list of many specific chemicals and resins is given (examples include cumene, methylene chloride, polyethylene and polypropylene resins, vinyl chloride, methanol, formaldehyde, ethylbenzene, and others). The Secretary must add substances that meet the more-than-20% test and may remove only those that do not meet either the weight or value test. "Importer" means the person bringing the taxable substance into the United States for use, sale, or storage. The meanings of "taxable chemical" and "United States" come from section 4662(a). Two parts of section 7652 (subsections (a)(3) and (b)(3)) do not apply to taxes under section 4671 for Puerto Rico and the U.S. Virgin Islands.
Full Legal Text
Title 26, §4672
Internal Revenue Code, Source: USLM XML via OLRC
(a)Taxable substance
For purposes of this subchapter—
(1)In general
The term “taxable substance” means any substance which, at the time of sale or use by the importer, is listed as a taxable substance by the Secretary for purposes of this subchapter.
(2)Determination of substances on list
A substance shall be listed under paragraph (1) if—
(A)the substance is contained in the list under paragraph (3), or
(B)the Secretary determines, in consultation with the Administrator of the Environmental Protection Agency and the Commissioner of U.S. Customs and Border Protection, that taxable chemicals constitute more than 20 percent of the weight (or more than 20 percent of the value) of the materials used to produce such substance (determined on the basis of the predominant method of production).
If an importer or exporter of any substance requests that the Secretary determine whether such substance be listed as a taxable substance under paragraph (1) or be removed from such listing, the Secretary shall make such determination within 180 days after the date the request was filed.
(3)Initial list of taxable substances
Cumene | Methylene chloride
Styrene | Polypropylene
Ammonium nitrate | Propylene glycol
Nickel oxide | Formaldehyde
Isopropyl alcohol | Acetone
Ethylene glycol | Acrylonitrile
Vinyl chloride | Methanol
Polyethylene resins, total | Propylene oxide
Polybutadiene | Polypropylene resins
Styrene-butadiene, latex | Ethylene oxide
Styrene-butadiene, snpf | Ethylene dichloride
Synthetic rubber, not containing fillers | Cyclohexane
Urea | Isophthalic acid
Ferronickel | Maleic anhydride
Ferrochromium nov 3 pct | Phthalic anhydride
Ferrochrome ov 3 pct. carbon | Ethyl methyl ketone
Unwrought nickel | Chloroform
Nickel waste and scrap | Carbon tetrachloride
Wrought nickel rods and wire | Chromic acid
Nickel powders | Hydrogen peroxide
Phenolic resins | Polystyrene homopolymer resins
Polyvinylchloride resins | Melamine
Polystyrene resins and copolymers | Acrylic and methacrylic acid resins
Ethyl alcohol for nonbeverage use | Vinyl resins
Ethylbenzene | Vinyl resins, NSPF.
(4)Modifications to list
The Secretary shall add to the list under paragraph (3) substances which meet either the weight or value tests of paragraph (2)(B) and may remove from such list only substances which meet neither of such tests.
(b)Other definitions
For purposes of this subchapter—
(1)Importer
The term “importer” means the person entering the taxable substance for consumption, use, or warehousing.
(2)Taxable chemicals; United States
The terms “taxable chemical” and “United States” have the respective meanings given such terms by section 4662(a).
(c)Disposition of revenues from Puerto Rico and the Virgin Islands
The provisions of subsections (a)(3) and (b)(3) of section 7652 shall not apply to any tax imposed by section 4671.
Legislative History
Notes & Related Subsidiaries
Editorial Notes
Amendments
2021—Subsec. (a)(2)(B). Pub. L. 117–58 substituted “20 percent” for “50 percent” in two places. 1988—Subsec. (a)(2). Pub. L. 100–647, § 2001(b)(2), inserted at end “If an importer or exporter of any substance requests that the Secretary determine whether such substance be listed as a taxable substance under paragraph (1) or be removed from such listing, the Secretary shall make such determination within 180 days after the date the request was filed.” Subsec. (a)(2)(B). Pub. L. 100–647, § 2001(b)(1), inserted “(or more than 50 percent of the value)” after “weight”. Subsec. (a)(4). Pub. L. 100–647, § 2001(b)(3), amended par. (4) generally. Prior to amendment, par. (4) read as follows: “(A) In general.—The Secretary may add substances to or remove substances from the list under paragraph (3) (including items listed by reason of paragraph (2)) as necessary to carry out the purposes of this subchapter. “(B) Authority to add substances to list based on value.—The Secretary may, to the extent necessary to carry out the purposes of this subchapter, add any substance to the list under paragraph (3) if such substance would be described in paragraph (2)(B) if ‘value’ were substituted for ‘weight’ therein.”
Statutory Notes and Related Subsidiaries
Change of Name
“Commissioner of U.S. Customs and Border Protection” substituted for “Commissioner of Customs” in subsec. (a)(2)(B) on authority of section 802(d)(2) of Pub. L. 114–125, set out as a note under section 211 of Title 6, Domestic Security.
Effective Date
of 2021 AmendmentAmendment by Pub. L. 117–58 effective July 1, 2022, see section 80201(d) of Pub. L. 117–58, set out as a note under section 4661 of this title.
Effective Date
of 1988 AmendmentAmendment by Pub. L. 100–647 effective, except as otherwise provided, as if included in the provision of the Superfund Revenue Act of 1986, Pub. L. 99–499, title V, to which it relates, see section 2001(e) of Pub. L. 100–647, set out as a note under section 56 of this title.
Effective Date
Section effective Jan. 1, 1989, see section 515(c) of Pub. L. 99–499, set out as a note under section 4671 of this title.
Transfer of Functions
For
Transfer of Functions
, personnel, assets, and liabilities of the United States Customs Service of the Department of the Treasury, including functions of the Secretary of the Treasury relating thereto, to the Secretary of Homeland Security, and for treatment of related references, see section 203(1), 551(d), 552(d), and 557 of Title 6, Domestic Security, and the Department of Homeland Security Reorganization Plan of
November 25, 2002, as modified, set out as a note under section 542 of Title 6. For establishment of U.S. Customs and Border Protection in the Department of Homeland Security, treated as if included in Pub. L. 107–296 as of Nov. 25, 2002, see section 211 of Title 6, as amended generally by Pub. L. 114–125, and section 802(b) of Pub. L. 114–125, set out as a note under section 211 of Title 6. Presumption As a Taxable Substance for Prior Determinations Pub. L. 117–58, div. H, title II, § 80201(c)(2), Nov. 15, 2021, 135 Stat. 1330, provided that: “Except as otherwise determined by the Secretary of the Treasury (or the Secretary’s delegate), any substance which was determined to be a taxable substance by reason of section 4672(a)(2) of the Internal Revenue Code of 1986 prior to the date of enactment of this Act [Nov. 15, 2021] shall continue to be treated as a taxable substance for purposes of such section after such date.” Publication of Initial List Pub. L. 117–58, div. H, title II, § 80201(c)(3), Nov. 15, 2021, 135 Stat. 1330, provided that: “Not later than
January 1, 2022, the Secretary of the Treasury (or the Secretary’s delegate) shall publish an initial list of taxable substances under section 4672(a) of the Internal Revenue Code of 1986.”
Reference
Citations & Metadata
Citation
26 U.S.C. § 4672
Title 26, Internal Revenue Code
Last Updated
Sep 23, 2026
Release point: 119-110