Compliance · Environmental

By File720Online Editorial Team · April 17, 2026

Environmental Excise Taxes on Form 720 and Form 6627

The environmental excise taxes on Form 720 cover petroleum products and Superfund chemicals. Since the Superfund chemical taxes were reinstated in 2022, more manufacturers and importers are now required to file. Here is what you need to know.

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Quick Answer

Environmental excise taxes on Form 720 include the petroleum oil spill tax ($0.09/barrel), Superfund chemical taxes (calculated on Form 6627), and the LUST tax (included in fuel rates). Superfund chemical taxes were reinstated January 1, 2022, affecting manufacturers and importers of listed hazardous chemicals.

Petroleum Oil Spill Tax

Rate

$0.09 per barrel

Who Pays

Importers and domestic producers of crude oil, petroleum products, and certain non-petroleum products

Notes

Funds the Oil Spill Liability Trust Fund used for cleanup costs from oil spills in U.S. waters.

Superfund Chemical Taxes (Form 6627)

Rate

Varies by chemical — see IRS Rate Schedule

Who Pays

Manufacturers, producers, and importers of listed hazardous chemicals

Notes

Reinstated by the Infrastructure Investment and Jobs Act (2021). Rates set per ton of taxable chemical.

Imported Chemical Derivatives

Rate

Calculated based on taxable chemical content

Who Pays

Importers of substances that contain or are derived from taxable Superfund chemicals

Notes

Applies when the import contains taxable chemicals above a de minimis threshold.

LUST Tax (Leaking Underground Storage Tank)

Rate

$0.001 per gallon

Who Pays

Terminal operators and fuel producers (included in fuel excise tax rates)

Notes

Added on top of the base fuel excise tax. Reported on the same Form 720 fuel line items.

Superfund Chemical Tax Reinstatement (2022)

The Infrastructure Investment and Jobs Act (2021) reinstated Superfund chemical taxes effective January 1, 2022. These taxes had not been in effect since 1995. If your business manufactures, produces, or imports any of approximately 42 listed hazardous chemicals, you became subject to these taxes starting in 2022.

The tax rates vary by chemical and are set per ton. You calculate the tax using Form 6627 (Environmental Taxes), which is attached to Form 720. The IRS published guidance on applicable chemicals and rates in Notice 2021-66.

If you were not filing Form 720 before 2022 but your business handles listed chemicals, you may need to register as a Form 720 filer and begin quarterly filings. Consult a tax professional to determine your obligations.

Related Articles

Fuel Excise Taxes Guide

LUST tax and fuel categories

All Excise Tax Categories

Complete schedule reference

First-Time Filing Checklist

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Frequently Asked Questions

What is Form 6627 and when is it required?
Form 6627 (Environmental Taxes) is a supporting schedule for Form 720. It is used to calculate Superfund chemical taxes and oil spill taxes. If your business manufactures, produces, or imports listed hazardous chemicals or petroleum products, you complete Form 6627 and carry the totals to Form 720. Form 6627 is filed as an attachment to Form 720.
When were Superfund chemical taxes reinstated?
Superfund chemical taxes were reinstated on January 1, 2022, by the Infrastructure Investment and Jobs Act (IIJA), also known as the Bipartisan Infrastructure Law. They had been inactive since 1995. The reinstated taxes apply to approximately 42 chemicals and petroleum products at rates set by the IRS.
How do I know if my chemical is subject to Superfund tax?
The IRS publishes a list of taxable chemicals subject to Superfund tax in IRS Notice 2021-66 and Revenue Procedure 2022-26. If your business manufactures, produces, or imports any substance on this list, you are liable for the tax. Consult IRS Publication 510 or a tax professional for the specific list and applicable rates.
Is the petroleum oil spill tax the same as a fuel excise tax?
No. The petroleum oil spill tax is a separate excise tax from the highway fuel excise taxes. It applies to crude oil received at a U.S. refinery and petroleum products entering the U.S. The rate is $0.09/barrel. It funds the Oil Spill Liability Trust Fund, which is distinct from highway trust funds that are funded by fuel excise taxes.
Can I file Form 6627 separately from Form 720?
No. Form 6627 is a supporting schedule and must be filed as an attachment to Form 720. You cannot file Form 6627 standalone. The totals from Form 6627 flow into the environmental taxes section of Form 720, which is then filed quarterly.

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Disclaimer: The information provided in this article is for general informational purposes only and should not be relied upon as legal, tax, or professional advice. Tax laws and regulations are subject to change, and their application can vary based on individual circumstances. Consult a qualified tax professional or attorney for advice specific to your situation. File720Online is an IRS-authorized e-file provider and does not provide legal or tax advice.