No Taxation on PFAS Remediation Act
Summary
What This Bill Does
The bill creates Internal Revenue Code section 139M so residents do not pay federal income tax on PFAS remediation reimbursements. The exclusion applies to reimbursements received in taxable years after December 31, 2020, and gives affected taxpayers a one-year window after enactment to seek a refund or credit if the usual limitations period would otherwise block the claim.
Who Benefits and How
PFAS-exposed families who receive remediation reimbursements benefit because cleanup or compensation payments are not treated as taxable income. Taxpayers with older PFAS reimbursement claims benefit from a special refund path if they already paid tax on covered payments.
Who Bears the Burden and How
The Internal Revenue Service and Treasury Department tax administrators must administer a new exclusion and amended-claim window. Federal taxpayers bear the cost of excluding covered reimbursements from income and paying any qualifying refunds.
Key Provisions
- Creates Internal Revenue Code section 139M for PFAS remediation reimbursements.
- Provides a federal income-tax exclusion for qualifying PFAS remediation reimbursement amounts received by residents.
- Directs Treasury and IRS administrators to honor refund or credit claims during a one-year post-enactment window.
- Applies the exclusion to taxable years beginning after December 31, 2020.
Evidence Chain:
This summary is generated from the full bill text using AI analysis. Expand "Detailed Analysis" below for identified beneficiaries/burden bearers with clause-level evidence links.
At a Glance
What This Bill Does
Excludes PFAS remediation reimbursements from individual gross income and allows a one-year refund claim window for older reimbursements.
Key Policy Areas
Tax, Environment
Primary Purpose
Excludes PFAS remediation reimbursements from individual gross income and allows a one-year refund claim window for older reimbursements.
Policy Domains
Substantive provisions
Identified Gains
- PFAS-exposed families receiving remediation reimbursements
- taxpayers claiming PFAS reimbursement refunds
- residents receiving PFAS cleanup compensation
Identified Costs
- Internal Revenue Service administrators
- Treasury Department tax administrators
- federal taxpayers
Sponsors
Legislative Progress
In CommitteeMr. Pappas introduced the following bill; which was referred to …
Referred to the House Committee on Ways and Means.
Introduced in House
Stakeholder Effects
cui bono?How this legislation distributes effects. Mention counts reflect frequency, not effect magnitude.
individuals receiving PFAS remediation reimbursements
Internal Revenue Service refund administrators, Internal Revenue Service tax administrators
federal taxpayers funding reduced income tax collections
Bill Structure & Actor Mappings
Who is "The Secretary" in each section?
- "Secretary"
- → Secretary of the Treasury
Key Definitions
Terms defined in this bill
Amounts received by an individual for PFAS remediation that qualify for exclusion from gross income under new section 139M.
We use a combination of our own taxonomy and classification in addition to large language models to assess meaning and potential beneficiaries. High confidence means strong textual evidence. Always verify with the original bill text.
Learn more about our methodology