H.R. 8632
PFAS Cleanup Act
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Text of the bill
(a) In general. Subpart D of part IV of subchapter A of chapter 1 of the Internal Revenue Code of 1986 is amended by adding at the end the following new section:
45BB. PFAS water remediation credit
(a) Allowance of credit. For purposes of section 38, the PFAS water remediation credit for any taxable year is an amount equal to 25 percent of the qualified PFAS water remediation expenditures paid or incurred by the taxpayer during the taxable year.
(b) Qualified PFAS water remediation expenditures. For purposes of this section—
(1) In general. The term qualified PFAS water remediation expenditures means, with respect to any public water system owned or operated by the taxpayer, any expenditures paid or incurred by such taxpayer for the removal of any perfluoroalkyl or polyfluoroalkyl substance the presence of which within such public water system is hazardously excessive.
(2) Hazardously excessive. For purposes of paragraph (1), the presence of any perfluoroalkyl or polyfluoroalkyl substance within a public water system shall be treated as hazardously excessive if the taxpayer establishes to the satisfaction of the Secretary that the presence of such substance is in excess of the maximum contaminant level (as defined in section 1401(3) of the Safe Drinking Water Act) promulgated by the Administrator of the Environmental Protection Agency for such substance pursuant to section 1412 of the Safe Drinking Water Act.
(3) Public water system. The term public water system has the meaning given such term by section 1401(4) of the Safe Drinking Water Act. Such term shall include any surface water system or ground water system.
(4) Perfluoroalkyl or polyfluoroalkyl substance. The term perfluoroalkyl or polyfluoroalkyl substance means any man-made chemical with at least one fully fluorinated carbon atom.
(c) Controlled groups. Rules similar to the rules of paragraph (1) of section 41(f) shall apply for purposes of this section.
(d) Regulations. The Secretary, in consultation with the Administrator of the Environmental Protection Agency, shall prescribe such regulations or other guidance as may be necessary or appropriate to carry out the purposes of this section.
(b) Credit allowed as part of general business credit. Section 38(b) of such Code is amended by striking plus at the end of paragraph (40), by striking the period at the end of paragraph (41) and inserting , plus, and by adding at the end the following new paragraph:
(42) the PFAS water remediation credit determined under section 45BB(a).
(c) Elective payment of credit. Section 6417(b) of such Code is amended by redesignating paragraphs (10) through (12) as paragraphs (11) through (13), respectively, and by inserting after paragraph (9) the following new paragraph:
(10) The PFAS water remediation credit determined under section 45BB(a).
(d) Clerical amendment. The table of sections for subpart D of part IV of subchapter A of chapter 1 of such Code is amended by adding after the item relating to section 45AA the following new item:
Sec. 45BB. PFAS water remediation credit.
(e) Effective date. The amendments made by this section shall apply with respect to taxable years beginning after December 31, 2026.