Title 26 — Internal Revenue CodeRelease 119-73
§4672 Definitions and Special Rules
Title 26 › Subtitle Subtitle D— Miscellaneous Excise Taxes › Chapter 38— ENVIRONMENTAL TAXES › Subchapter C— Tax on Certain Imported Substances › § 4672
Summary
Imported "taxable substances" face a chemical tax, and these rules define what counts. A substance is taxable if it is on the government's list at the time the importer sells or uses it. It gets listed either because it appears in the law's own list of dozens of chemicals and resins — such as styrene, methanol, urea, and polyethylene resins — or because the government finds that taxable chemicals make up more than 20 percent of the weight or value of the materials used to make it. That 20 percent threshold replaced a 50 percent threshold starting July 1, 2022. Substances that meet the weight or value test must be added to the list, and only substances that meet neither test can be removed. The "importer" is the person bringing the substance in for consumption, use, or warehousing.
Full Legal Text
Title 26, §4672
Internal Revenue Code — Source: USLM XML via OLRC
(a)For purposes of this subchapter—
(1)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)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).
(3)CumeneMethylene chloride StyrenePolypropylene Ammonium nitratePropylene glycol Nickel oxideFormaldehyde Isopropyl alcoholAcetone Ethylene glycolAcrylonitrile Vinyl chlorideMethanol Polyethylene resins, totalPropylene oxide PolybutadienePolypropylene resins Styrene-butadiene, latexEthylene oxide Styrene-butadiene, snpfEthylene dichloride Synthetic rubber, not containing fillersCyclohexane UreaIsophthalic acid FerronickelMaleic anhydride Ferrochromium nov 3 pctPhthalic anhydride Ferrochrome ov 3 pct. carbonEthyl methyl ketone Unwrought nickelChloroform Nickel waste and scrapCarbon tetrachloride Wrought nickel rods and wireChromic acid Nickel powdersHydrogen peroxide Phenolic resinsPolystyrene homopolymer resins Polyvinylchloride resinsMelamine Polystyrene resins and copolymersAcrylic and methacrylic acid resins Ethyl alcohol for nonbeverage useVinyl resins EthylbenzeneVinyl resins, NSPF.
(4)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)For purposes of this subchapter—
(1)The term “importer” means the person entering the taxable substance for consumption, use, or warehousing.
(2)The terms “taxable chemical” and “United States” have the respective meanings given such terms by section 4662(a).
(c)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
Apr 6, 2026
Release point: 119-73