Enlarge image | Userid: CPM Schema: instrx Leadpct: 100% Pt. size: 9 Draft Ok to Print AH XSL/XML Fileid: … ns/i6627/202401/a/xml/cycle03/source (Init. & Date) _______ Page 1 of 7 10:15 - 26-Feb-2024 The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing. Department of the Treasury Internal Revenue Service Instructions for Form 6627 (Rev. January 2024) Environmental Taxes Section references are to the Internal Revenue Code unless otherwise noted. General Instructions Future Developments Purpose of Form For the latest information about developments related to Form Use this form to figure the environmental taxes on domestic 6627 and its instructions, such as legislation enacted after they crude oil and imported petroleum products, chemicals (other were published, go to IRS.gov/Form6627. than ozone-depleting chemicals (ODCs)), imported chemical substances, ODCs, imported products that used ODCs as What’s New materials in the manufacture or production of the product, and The Inflation Reduction Act of 2022 reinstated the section 4611 the floor stocks tax on ODCs. If you need more lines for any part Hazardous Substance Superfund financing rate (petroleum of the form, prepare a continuation sheet using the same format Superfund tax rate) on domestic crude oil and imported as the part. Attach the continuation sheet with Form 6627 to petroleum products, effective January 1, 2023, and stated that Form 720, Quarterly Federal Excise Tax Return. See Pub. 510, the tax will be indexed for inflation beginning in 2024. The Excise Taxes, for more information on environmental taxes. See financing rate is actually two taxes: the Hazardous Substance the Instructions for Form 720 for information on when and where Superfund rate that's annually adjusted for inflation, on lines 3a, to file Form 6627. 4a, and 7; and the $.09 per barrel Oil Spill Liability Trust Fund financing rate on lines 3b, 4b, and 8. For 2024, the Hazardous Who Must File Substance Superfund rate is adjusted for inflation and increased to $.17 per barrel. See Part I. Tax on Petroleum (IRS Nos. 16, 18, For Petroleum 21, and 53), later, and IRS.gov/irb/2023-48_IRB#NOT-2023-34. 1. The operator of the refinery that receives crude oil; The section 4681 tax rates for ozone-depleting chemicals 2. The user of crude oil before tax is imposed; and (ODCs) are increased for 2024. See Part VI. Tax on Floor 3. The person entering the petroleum products for Stocks of ODCs, later. consumption, use, or warehousing. Reminders For Chemicals (other than ODCs) Due to the IRS′ acquiescence in a recent court case, the The manufacturer, producer, or importer of chemicals who sells ! section 4611 tax on exported crude oil currently doesn’t or uses those chemicals. CAUTION apply. See AOD 2023-01, at IRS.gov/Actions on Decisions. For Imported Chemical Substances The Infrastructure Investment and Jobs Act reinstated the The importer of substances who sells or uses those substances. section 4661 excise tax on chemicals (other than ODCs) and the section 4671 tax on imported chemical substances, effective For ODCs July 1, 2022 (they previously expired on December 31,1995). 1. The manufacturer or importer of ODCs who sells or uses • The tax rates for chemicals (other than ODCs) are listed on those ODCs; Form 6627, Part II. • See Table of Taxable Imported Chemical Substances for a 2. The importer of taxable products who sells or uses those listing of taxable imported chemical substances and the products; and IRS-provided tax rates for most of the substances. Any 3. The person other than the manufacturer or importer of additional tax rates the IRS provides will be available either ODCs who holds ODCs for sale or use in manufacturing on online or in the Table of Taxable Imported Chemical Substances January 1, 2024. when they become available. Taxpayers are reminded that they may calculate their own tax rates for imported chemical substances, regardless of whether the IRS has provided a tax Specific Instructions rate. • Rev. Proc. 2022-26 provides procedures for requesting a Part I. Tax on Petroleum (IRS Nos. 16, 18, 21, determination that a substance be added or removed. and 53) • See Notice 2022-15 for information about temporary relief The tax rate on domestic crude oil and imported petroleum from the penalty for failure to deposit the 2022 third and fourth products is the sum of the Oil Spill Liability Trust Fund financing quarter taxes. rate (petroleum oil spill tax rate) and the Hazardous Substance • For updates, such as the not yet shown tax rates for taxable Superfund financing rate (petroleum Superfund tax rate). The imported chemical substances, or substances recently added or petroleum oil spill tax rate is $0.09 per barrel. For 2024, the removed, go to IRS.gov/Form6627. Also see frequently asked petroleum Superfund tax rate is $.17 per barrel (this rate will be questions and answers. indexed annually for inflation). Although the domestic crude oil or imported petroleum products are reported separately, there is no difference in tax rates. For domestic crude oil, report the petroleum oil spill tax rate on IRS No. 18 and the petroleum Superfund tax rate on IRS No. 53. For imported petroleum products, report the petroleum Feb 26, 2024 Cat. No. 11548F |
Enlarge image | Page 2 of 7 Fileid: … ns/i6627/202401/a/xml/cycle03/source 10:15 - 26-Feb-2024 The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing. oil spill tax rate on IRS No. 21 and the petroleum Superfund tax substance. If using an IRS-provided tax rate, there’s no need to rate on IRS No. 16. enter information in column (d). Crude oil. Tax is imposed on domestic crude oil when it is Column (e). Enter the tax rate of each taxable chemical from received at a U.S. refinery. Crude oil includes crude oil Part II of Form 6627. If you don’t have enough information to condensates and natural gasoline. The operator of the refinery is determine the conversion factor and are using an IRS-provided liable for the tax. Tax is imposed on imported crude oil received tax rate, enter that tax rate here. If you don’t have enough at a U.S. refinery unless the imported petroleum products tax information to determine the conversion factor and you’re figuring was imposed when the imported crude oil was entered into the the tax based on the appraised entry value, enter 10% here. United States. The operator of a U.S. refinery that receives Column (f). Multiply the number of tons in column (b) by the imported crude oil must establish that tax was previously conversion factor in column (d) by the rate in column (e) for each imposed on the imported crude oil. taxable chemical listed. If you don’t have enough information to User of crude oil. Tax is imposed on domestic crude oil that’s determine the conversion factor and the IRS has provided a tax used before it is received at a U.S. refinery. The user is liable for rate, multiply column (b) by column (e). If you don’t have enough the tax. Crude oil used for extracting oil or natural gas on the information to determine the conversion factor and the IRS premises where the crude oil is produced is not taxable. hasn’t provided a tax rate, you must use the appraised entry value to figure the tax. To figure the tax using the appraised entry Imported petroleum products. Tax is imposed on imported value, multiply the appraised entry value in column (d) by the petroleum products when they are entered into the United States rate (10%) in column (e). for use, consumption, or warehousing. Petroleum products include crude oil, refined and residual oil, and other liquid hydrocarbon refinery products. The person entering the Part IV. Tax on Ozone-Depleting Chemicals petroleum product into the country is liable for the tax. (ODCs), IRS No. 98 The tax on petroleum is imposed only once on any imported The following ODCs are taxable. petroleum product. The enterer must provide documentation of the tax imposed on imported crude oil to the refinery operator if requested by the refinery operator. Fractional barrels. Fractional barrels are taxed at a Post-1989 ODCs Tax per proportionate rate using the fraction produced by the number of Pound in 2024 gallons in the barrel over 42 gallons. Multiply the resulting fraction by the sum of the $0.09 per barrel petroleum oil spill tax CFC-11 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $18.4 rate and the $.17 per barrel petroleum Superfund tax rate. CFC-12 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18.4 Part III. Tax on Imported Chemical Substances, CFC-113 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14.72 IRS No. 17 CFC-114 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18.4 The imported chemical substance tax is equal to the chemical CFC-115 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11.04 tax that would have been imposed on the taxable chemicals (listed in Part II of Form 6627) used as materials in the Halon-1211 . . . . . . . . . . . . . . . . . . . . . . . . . . . 55.2 manufacture of the substance if such substance had been Halon-1301 . . . . . . . . . . . . . . . . . . . . . . . . . . . 184 manufactured in the United States. See Table of Taxable Imported Chemical Substances for the substances to which the Halon-2402 . . . . . . . . . . . . . . . . . . . . . . . . . . . 110.4 imported substance tax applies. Post-1990 ODCs Tax per To figure the tax, you’ll generally need to know the ratio of the Pound in 2024 weight of each taxable chemical used to make the substance to Carbon tetrachloride . . . . . . . . . . . . . . . . . . . . . 20.235 the total weight of the substance (the conversion factor). If you don’t have enough information to determine the conversion Methyl chloroform . . . . . . . . . . . . . . . . . . . . . . . 1.835 factor and the IRS has provided a tax rate for the substance, CFC-13, CFC-111, CFC-112, and CFC-211 through either online or in Table of Taxable Imported Chemical CFC-217 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18.4 Substances, then that tax rate applies. If you don’t have enough information to determine the conversion factor and the IRS hasn’t provided a tax rate for the substance, then the tax is 10% The tax per pound rates above are figured using the of the appraised entry value of the substance. ! ozone-depletion factor. Do not multiply the tax per pound Follow the steps, next, to figure the tax for Part III, lines 1 CAUTION by the ozone-depletion factor. through 3. Mixture elections. Generally, the creation of a mixture Column (a). Enter the imported chemical substance subject to containing one or more ODCs by the manufacturer or importer of tax. an ODC is treated as the use of the ODC in the mixture. Column (b). Enter the number of tons of the substance However, the manufacturer or importer may elect to treat the sale imported and sold or used. or use of the mixture as the first sale or use of the ODC in the mixture. Column (c). Enter each taxable chemical (listed in Part II of Post-1989 ODCs (the 1990 election). If this election is Form 6627) used in the manufacture of the substance. If using made, the tax on the post-1989 ODCs (listed earlier) contained an IRS-provided tax rate or a tax rate based on 10% of the in the mixture is imposed on the date of sale or use of the appraised entry value of the substance, there’s no need to enter mixture. To make the election, check the first box in Part IV, information in column (c). under Elections. This election may be revoked only with the Column (d). Enter the conversion factor for each taxable consent of the IRS. chemical or the appraised entry value of the total amount of the Post-1990 ODCs (the 1991 election). If this election is made, the tax on the post-1990 ODCs (listed earlier) contained 2 Instructions for Form 6627 (Rev. January 2024) |
Enlarge image | Page 3 of 7 Fileid: … ns/i6627/202401/a/xml/cycle03/source 10:15 - 26-Feb-2024 The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing. in the mixture is imposed on the date of sale or use of the Column (e). If you are using the value method to figure the tax, mixture. To make the election, check the second box in Part IV, enter the entry value of the total number of imported products. under Elections. This election may be revoked only with the consent of the IRS. Column (f). Figure the tax due by multiplying the number of products in column (b) by the ODC weight in column (c) by the Column (c). Enter the tax per pound using the chart earlier. tax per pound in column (d). If you are using the value method, multiply the 1% (0.01) rate in column (d) by the entry value in Part V. ODC Tax on Imported Products, IRS No. column (e). 19 An imported taxable product is any product entered into the Part VI. Tax on Floor Stocks of ODCs United States for consumption, use, or warehousing if any ODC The floor stocks tax for 2024 is imposed on the following ODCs. was used as material in the manufacture or production of the product. The product must also be listed in the imported products table issued by the IRS. See Regulations section ODCs Tax per 52.4682-3(f)(6). The tax is based on the weight of ODCs used in Pound in 2024 the manufacture of the product. If the weight can’t be determined under the exact method or table method (see below), the tax is CFC-11 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $0.45 1% of the entry value of the product (value method). CFC-12 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.45 Importer election. Generally, an imported taxable product is taxed when sold or used by the importer. However, an importer CFC-113 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.36 may elect to treat the entry of products into the United States as CFC-114 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.45 the use of such products. This election applies to all products held by the importer when the election becomes effective, and all CFC-115 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.27 products the importer enters into the United States after the Halon-1211 . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.35 election becomes effective. If an election applies to an imported taxable product, tax is imposed on the product on the date of Halon-1301 . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4.50 entry. To make the election, check the box in Part V, under Halon-2402 . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.70 Elections. This election may be revoked only with the consent of the IRS. Carbon tetrachloride . . . . . . . . . . . . . . . . . . . . . . 0.495 Methyl chloroform . . . . . . . . . . . . . . . . . . . . . . . . 0.045 Figure the ODC Weight of the Product as Follows CFC-13, CFC-111, CFC-112, and CFC-211 through Exact method. If you determine the weight of each ODC CFC-217 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.45 used as a material in the manufacture of the product and you can support this determination, the ODC weight is the weight you The tax per pound rates above are figured using the determine. ! ozone-depletion factor. Do not multiply the tax per pound Table method. If you don’t use the exact method and the CAUTION by the ozone-depletion factor. ODC weight is listed in the imported products table, use the ODC weight listed to figure the tax. See Pub. 510 for more For 2024, you are liable for the floor stocks tax if, on January information. 1, you hold any of the following. Follow the steps, next, to figure the tax for Part V, lines 1 1. At least 400 pounds of ODCs, other than halons or methyl through 3. chloroform, subject to the floor stocks tax. Column (a). Enter the imported product and the applicable 2. At least 50 pounds of halons. ODC. Use additional lines if there is more than one ODC. 3. At least 1,000 pounds of methyl chloroform. Column (b). Enter the number of taxable products imported. Report the tax on Form 6627 and Form 720 for the second Column (c). Enter the ODC weight of the product in pounds. If calendar quarter of 2024. Payment of the tax is due by June 30, you are using the value method, don’t complete this column. 2024. Column (d). Enter the tax per pound from the chart in the Column (c). Enter the tax per pound using the chart above. instructions for Part IV, earlier. If you are using the value method, enter 1% (0.01). Table of Taxable Imported Chemical Substances (Beginning July 1, 2022) * Tax rate per ton (Rate/Ton) to be determined at a later date and published at IRS.gov/Form6627 as soon as they become available. Imported Chemical Substance Rate/Ton ($) Effective Date 1,3-butylene glycol 7.28 7/1/2022 1,4 butanediol 4.68 7/1/2022 1,5,9-cyclododecatriene 9.74 7/1/2022 2,2,4-trimethyl-1,3-pentanediol diisobutyrate * 7/1/2022 2,2,4-trimethyl-1,3-pentanediol monoisobutyrate * 7/1/2022 2-ethyl hexanol 7.16 7/1/2022 Instructions for Form 6627 (Rev. January 2024) 3 |
Enlarge image | Page 4 of 7 Fileid: … ns/i6627/202401/a/xml/cycle03/source 10:15 - 26-Feb-2024 The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing. Imported Chemical Substance Rate/Ton ($) Effective Date 2-ethylhexyl acrylate 7.34 7/1/2022 acetic acid * 7/1/2022 acetone 20.06 7/1/2022 acetylene black 10.52 7/1/2022 acrylic acid resins 5.65 7/1/2022 methacrylic acid resins 14.94 7/1/2022 acrylonitrile 9.38 7/1/2022 adipic acid 6.13 7/1/2022 adiponitrile 8.57 7/1/2022 allyl chloride 10.38 7/1/2022 alpha-methylstyrene 9.93 7/1/2022 ammonium nitrate 1.49 7/1/2022 aniline 9.40 7/1/2022 benzaldehyde 8.47 7/1/2022 benzoic acid 7.31 7/1/2022 bisphenol-A 10.23 7/1/2022 butanol 6.31 7/1/2022 butyl acrylate 6.84 7/1/2022 butyl benzyl phthalate 12.15 7/1/2022 carbon tetrachloride 10.62 7/1/2022 chlorinated polyethylene 10.25 7/1/2022 chloroform 10.51 7/1/2022 chromic acid 4.37 7/1/2022 cumene 9.74 7/1/2022 cyclododecanol 9.05 7/1/2022 cyclohexane 10.02 7/1/2022 decabromodiphenyl oxide 17.99 7/1/2022 di-2 ethyl hexyl phthalate 7.37 7/1/2022 diethanolamine 6.01 7/1/2022 diglycidyl ether of bisphenol-A 13.86 7/1/2022 diisopropanolamine 12.76 7/1/2022 dimethyl terephthalate 5.91 7/1/2022 dimethyl-2, 6-naphthalene dicarboxylate 6.81 7/1/2022 di-n-hexyl adipate 8.23 7/1/2022 diphenyl oxide 13.73 7/1/2022 diphenylamine 10.28 7/1/2022 epichlorohydrin 12.89 7/1/2022 ethyl acetate * 7/1/2022 ethyl acrylate 4.09 7/1/2022 ethyl alcohol for nonbeverage use 5.94 7/1/2022 ethyl chloride 4.52 7/1/2022 ethyl methyl ketone 7.60 7/1/2022 ethyl benzene 9.74 7/1/2022 ethylene dibromide 9.03 7/1/2022 4 Instructions for Form 6627 (Rev. January 2024) |
Enlarge image | Page 5 of 7 Fileid: … ns/i6627/202401/a/xml/cycle03/source 10:15 - 26-Feb-2024 The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing. Imported Chemical Substance Rate/Ton ($) Effective Date ethylene dichloride 6.62 7/1/2022 ethylene glycol 4.38 7/1/2022 ethylene oxide 6.23 7/1/2022 ethylene bistetrabromophthalimide * 7/1/2022 ferrochrome ov 3 pct. carbon 4.83 7/1/2022 ferrochromium nov 3 pct. 4.83 7/1/2022 ferronickel * 7/1/2022 formaldehyde * 7/1/2022 formic acid * 7/1/2022 glycerine * 7/1/2022 hexabromocyclododecane 9.11 7/1/2022 hexamethylenediamine 8.93 7/1/2022 hydrogen peroxide * 7/1/2022 isobutyl acetate 4.47 7/1/2022 isophthalic acid 6.23 7/1/2022 isopropyl acetate 4.54 7/1/2022 isopropyl alcohol 6.82 7/1/2022 linear alpha olefins 9.74 7/1/2022 maleic anhydride 5.75 7/1/2022 melamine 4.28 7/1/2022 methanol * 7/1/2022 methyl acrylate 5.39 7/1/2022 methyl chloroform 6.37 7/1/2022 methyl isobutyl ketone 23.65 7/1/2022 methyl methacrylate 14.75 7/1/2022 methylene chloride 10.33 7/1/2022 monochlorobenzene 10.12 7/1/2022 monoethanolamine 5.96 7/1/2022 monoisopropanolamine 11.74 7/1/2022 nickel oxide 7.03 7/1/2022 nickel powders * 7/1/2022 nickel waste and scrap * 7/1/2022 normal butyl acetate 4.47 7/1/2022 normal propyl acetate 3.73 7/1/2022 nylon 6/6 8.67 7/1/2022 ortho-dichlorobenzene 10.35 7/1/2022 ortho-nitrochlorobenzene 7.49 7/1/2022 para-dichlorobenzene 10.35 7/1/2022 paraformaldehyde * 7/1/2022 para-nitrochlorobenzene 7.49 7/1/2022 para-nitrophenol 8.59 7/1/2022 pentaerythritol 3.86 7/1/2022 perchloroethylene 10.89 7/1/2022 phenol 12.47 7/1/2022 Instructions for Form 6627 (Rev. January 2024) 5 |
Enlarge image | Page 6 of 7 Fileid: … ns/i6627/202401/a/xml/cycle03/source 10:15 - 26-Feb-2024 The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing. Imported Chemical Substance Rate/Ton ($) Effective Date phenolic resins 9.86 7/1/2022 phosphorous pentasulfide 2.49 7/1/2022 phosphorous trichloride 6.21 7/1/2022 phthalic anhydride 7.01 7/1/2022 poly (69/31 ethylene/cyclohexylenedimethylene terephthalate) * 7/1/2022 poly (96.5/3.5 ethylene/cyclohexylenedimethylene terephthalate) * 7/1/2022 poly (98.5/1.5 ethylene/cyclohexylenedimethylene terephthalate) * 7/1/2022 poly 1,4 butyleneterephthalate 7.21 7/1/2022 poly(ethyleneoxy)glycerol * 7/1/2022 poly(propylene)glycol 10.38 7/1/2022 poly(propylene/ethylene)glycol 8.84 7/1/2022 poly(propyleneoxy)glycerol * 7/1/2022 poly(propyleneoxy)sucrose 2.04 7/1/2022 poly(propyleneoxy/ethyleneoxy)benzenediamine * 7/1/2022 poly(propyleneoxy/ethyleneoxy)diamine * 7/1/2022 poly(propyleneoxy/ethyleneoxy)glycerol * 7/1/2022 poly(propyleneoxy/ethyleneoxy)sucrose 2.57 7/1/2022 polyalphaolefins 11.37 7/1/2022 polybutadiene 9.74 7/1/2022 polybutene 9.74 7/1/2022 polybutylene 9.74 7/1/2022 polybutylene/ethylene 9.74 7/1/2022 polycarbonate 10.84 7/1/2022 polyethylene resins (total) 9.74 7/1/2022 polyethylene terephthalate pellets 6.82 7/1/2022 polypropylene 9.74 7/1/2022 polypropylene resins 9.74 7/1/2022 polystyrene homopolymer resins 9.93 7/1/2022 polystyrene resins and copolymers * 7/1/2022 polyvinylchloride resins 7.46 7/1/2022 propanol 5.47 7/1/2022 propylene glycol 10.38 7/1/2022 propylene oxide 13.60 7/1/2022 sodium nitriolotriacetate monohydrate * 7/1/2022 styrene 9.93 7/1/2022 styrene-butadiene (latex) 9.84 7/1/2022 styrene-butadiene (snpf) * 7/1/2022 synthetic linear fatty alcohol ethoxylates 7.12 7/1/2022 synthetic linear fatty alcohols 9.29 7/1/2022 synthetic rubber (not containing fillers) * 7/1/2022 terephthalic acid 6.23 7/1/2022 tetrabromobisphenol-A 14.79 7/1/2022 tetrachlorophthalic anhydride 8.95 7/1/2022 tetrahydrofuran 5.78 7/1/2022 6 Instructions for Form 6627 (Rev. January 2024) |
Enlarge image | Page 7 of 7 Fileid: … ns/i6627/202401/a/xml/cycle03/source 10:15 - 26-Feb-2024 The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing. Imported Chemical Substance Rate/Ton ($) Effective Date texanol benzyl phthalate * 7/1/2022 toluene diisocyanate 10.85 7/1/2022 toluenediamine 9.18 7/1/2022 trichloroethylene 10.79 7/1/2022 triethanolamine 6.04 7/1/2022 triisopropanolamine 12.84 7/1/2022 trimethylolpropane 4.63 7/1/2022 unwrought nickel * 7/1/2022 urea 3.01 7/1/2022 vinyl acetate 3.83 7/1/2022 vinyl chloride 7.46 7/1/2022 vinyl resins (nspf) * 7/1/2022 vinyl resins * 7/1/2022 wrought nickel rods and wire * 7/1/2022 Instructions for Form 6627 (Rev. January 2024) 7 |