Federal legislation would repeal chemical tax

Legislation recently introduced in the U.S. House of Representatives would repeal the Superfund Chemical fee on three substances enacted in the Infrastructure Investment & Jobs Act.

The USA Batteries Act would repeal the fee on lead oxide, antimony, and sulfuric acid, primary components in lead battery manufacturing.

“This tax hike on American battery manufacturers reduces America’s competitiveness and kills good manufacturing jobs,” U.S. Rep. Dan Meuser (R-PA), who co-sponsored the bill, said. “At a time when small businesses are reeling from supply chain disruptions, labor shortages, and higher prices, this new and unnecessary tax would be detrimental to the industry. Repealing this tax ensures this industry can continue to thrive without facing stiffened competition from foreign producers who have a competitive advantage because they aren’t subject to the tax.”

U.S. Reps. Vicky Hartzler (R-MO), Billy Long (R-MO) and John Moolenaar (R-MI) also sponsored the bill.

“The USA Batteries Act will eliminate a tax that gives foreign manufacturers an unfair advantage on the cost of raw materials, and undermines the purpose of the infrastructure bill which was created to support domestic manufacturing,” Roger Miksad, Battery Council International executive vice president, said. “If the tax is allowed to stand it will negatively impact the 25,000 American workers who make and recycle lead batteries and take pride in the fact that their product is the most recycled consumer product in the U.S.”