IRS Notice: Expansion of Taxable Substances List to Include 39 Additional Chemical Substances

The IRS published a notice modifying the list of taxable substances subject to excise tax. The effective date for taxation of the substances added to the list is Jan. 1, 2026, with prescribed tax rates ranging from $5.06 to $10.51 per ton based on conversion factors for the taxable chemicals used in production. [IRS Notice 2025-51, (Oct. 6, 2025)]

This story was produced by Bloomberg Tax Automation, and edited by Bloomberg Tax staff.