No Taxation on PFAS Remediation Act

Bill Number

H.R. 6669

Origin Chamber

House

Congress

119th Congress, Session 1

Policy Area

Taxation

Status

Introduced

Latest Action

2025-12-11: Referred to the House Committee on Ways and Means.

Last Updated

2026-01-06T16:13:05Z

AI-Generated Summary

Purpose

The "No Taxation on PFAS Remediation Act" (H.R. 6669) aims to encourage the cleanup of environmental contamination by perfluoroalkyl and polyfluoroalkyl substances (PFAS, often called "forever chemicals" due to their persistence in the environment) by ensuring that reimbursements for remediation costs are not treated as taxable income for individuals.

Key Provisions

• Income Exclusion: Adds a new section (139M) to the Internal Revenue Code of 1986, stating that gross income for individuals does not include any amounts received as reimbursements for remediating PFAS contamination during a taxable year.
• Retroactive Application: The exclusion applies to reimbursements received in taxable years beginning after December 31, 2020.
• Statute of Limitations Extension: Allows claims for tax refunds or credits related to this exclusion to be filed within one year of the bill's enactment, even if the standard deadline has passed.
• Clerical Update: Inserts the new section into the table of contents for the relevant part of the tax code.

Significant Changes to Existing Law

• Under current tax law, reimbursements for environmental cleanup (like those for PFAS) could be considered taxable income, similar to other forms of compensation or recovery. This bill creates a specific exemption, treating these reimbursements as non-taxable, which is a new carve-out not previously available for PFAS-related costs.
• The retroactive effective date allows taxpayers to amend prior returns for 2021 and later years, potentially leading to refunds.

Potential Impacts

• On Citizens: Individuals (e.g., homeowners or small business owners) affected by PFAS contamination near military bases, industrial sites, or water supplies will face lower tax burdens on cleanup reimbursements, making remediation more affordable and incentivizing participation in cleanup efforts.
• On Government Agencies: The Internal Revenue Service (IRS) may see a minor reduction in tax revenue and an increase in refund claims, requiring administrative processing for retroactive adjustments. Environmental agencies like the Environmental Protection Agency (EPA) could indirectly benefit from faster or more widespread PFAS cleanups.
• On International Relations: Minimal direct impact, though it aligns with U.S. efforts to address global PFAS pollution concerns, potentially supporting international environmental agreements without affecting foreign policy.

Main Stakeholders Affected

• Taxpayers Receiving Reimbursements: Primarily individuals impacted by PFAS contamination, such as residents near contaminated sites or those eligible for federal/state cleanup funds.
• Environmental and Health Advocates: Groups focused on PFAS pollution, who may see this as a step toward broader accountability for polluters.
• Government Entities: The IRS for tax administration; federal agencies like the Department of Defense (which funds many PFAS cleanups at military sites) and the EPA for remediation programs.
• Potentially Businesses: While the exclusion is for individuals, it could indirectly benefit companies if reimbursements flow through to affected employees or owners.

Notable Legal, Constitutional, or Political Implications

• Legal: Introduces a targeted tax incentive for environmental remediation, which could set a precedent for similar exclusions in future pollution-related laws. The retroactive clause may face challenges if it leads to disputes over refund eligibility, but it complies with standard tax code practices for amendments.
• Constitutional: No apparent issues; it falls within Congress's authority to regulate taxation under Article I of the U.S. Constitution.
• Political: Supports bipartisan environmental priorities by addressing PFAS health risks (linked to cancer and immune issues) without increasing spending, potentially appealing to lawmakers in contaminated regions. It highlights ongoing debates over corporate liability for PFAS pollution.

This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.

Sponsor

Rep. Pappas, Chris [D-NH-1]

Recent Actions

• 2025-12-11: Referred to the House Committee on Ways and Means.
• 2025-12-11: Introduced in House
• 2025-12-11: Introduced in House

Bill Versions

• No Taxation on PFAS Remediation Act — issued 2025-12-11 — PDF (2 pages)