Notice2024-19604

Superfund Tax on Chemical Substances; Request To Modify List of Taxable Substances; Notice of Filing for Methoxytriglycol

Primary source

Metadata and text below are from the Federal Register, a public-domain U.S. government work. Always verify the official published version before relying on it for any legal matter.

Published
September 3, 2024

Issuing agencies

Treasury DepartmentInternal Revenue Service

Abstract

This notice of filing announces that a petition has been filed requesting that methoxytriglycol be added to the list of taxable substances. This notice of filing also requests comments on the petition. This notice of filing is not a determination that the list of taxable substances is modified.

Full Text

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<title>Federal Register, Volume 89 Issue 170 (Tuesday, September 3, 2024)</title>
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[Federal Register Volume 89, Number 170 (Tuesday, September 3, 2024)]
[Notices]
[Page 71789]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2024-19604]


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DEPARTMENT OF THE TREASURY

Internal Revenue Service


Superfund Tax on Chemical Substances; Request To Modify List of 
Taxable Substances; Notice of Filing for Methoxytriglycol

AGENCY: Internal Revenue Service (IRS), Treasury.

ACTION: Notice of filing and request for comments.

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SUMMARY: This notice of filing announces that a petition has been filed 
requesting that methoxytriglycol be added to the list of taxable 
substances. This notice of filing also requests comments on the 
petition. This notice of filing is not a determination that the list of 
taxable substances is modified.

DATES: Written comments and requests for a public hearing must be 
received on or before November 4, 2024.

ADDRESSES: Commenters are encouraged to submit public comments or 
requests for a public hearing relating to this petition electronically 
via the Federal eRulemaking Portal at <a href="http://www.regulations.gov">http://www.regulations.gov</a> 
(indicate public docket number IRS-2024-0040 or methoxytriglycol) by 
following the online instructions for submitting comments. Comments 
cannot be edited or withdrawn once submitted to the Federal eRulemaking 
Portal. Alternatively, comments and requests for a public hearing may 
be mailed to: Internal Revenue Service, Attn: CC:PA:01:PR (Notice of 
Filing for Methoxytriglycol), Room 5203, P.O. Box 7604, Ben Franklin 
Station, Washington, DC 20044. All comments received are part of the 
public record and subject to public disclosure. All comments received 
will be posted without change to <a href="http://www.regulations.gov">www.regulations.gov</a>, including any 
personal information provided. You should submit only information that 
you wish to make publicly available. If a public hearing is scheduled, 
notice of the time and place for the hearing will be published in the 
Federal Register.

FOR FURTHER INFORMATION CONTACT: Camille Edwards Bennehoff at (202) 
317-6855 (not a toll-free number).

SUPPLEMENTARY INFORMATION:

Request To Add Substance to the List

    (a) Overview. A petition was filed pursuant to Rev. Proc. 2022-26 
(2022-29 I.R.B. 90), as modified by Rev. Proc. 2023-20 (2023-15 I.R.B. 
636), requesting that methoxytriglycol be added to the list of taxable 
substances under section 4672(a) of the Internal Revenue Code (List). 
The petition requesting the addition of methoxytriglycol to the List is 
based on weight and contains the information detailed in paragraph (b) 
of this document. The information is provided for public notice and 
comment pursuant to section 9 of Rev. Proc. 2022-26. The publication of 
petition information in this notice of filing is not a determination 
and does not constitute Treasury Department or IRS confirmation of the 
accuracy of the information published.
    (b) Petition Content.
    (1) Substance name: Methoxytriglycol
    (2) Petitioner: The Dow Chemical Company, an exporter of 
methoxytriglycol.
    (3) Proposed classification numbers:
    (i) HTSUS number: 2909.49.6000
    (ii) Schedule B number: 2922.17.0000
    (iii) CAS number: 112-35-6
    (4) Petition filing dates:
    (i) Petition filing date for purposes of making a determination: 
June 13, 2024
    (ii) Petition filing date for purposes of section 11.02 of Rev. 
Proc. 2022-26, as modified by section 3 of Rev. Proc. 2023-20: July 1, 
2022
    (5) Description from petition: According to the petition, 
methoxytriglycol, a liquid, is a low-volatility, high solvency glycol 
ether with excellent coupling properties.
    Methoxytriglycol is made from ethylene and methane. Taxable 
chemicals constitute 60.00 percent by weight of the materials used to 
produce this substance.
    (6) Process identified in petition as predominant method of 
production of substance: Glycol ethers are predominantly produced by 
reacting an epoxide (typically ethylene oxide or propylene oxide) with 
an alcohol; this reaction process is referred to as alkoxylation. 
Methoxytriglycol (C<INF>7</INF>H<INF>16</INF>O<INF>4</INF>) is produced 
by the alkoxylation process using methanol (CH<INF>3</INF>OH) and 3 
equivalents of ethylene oxide (C<INF>2</INF>H<INF>4</INF>O). Methanol 
is made from syngas (carbon monoxide and dihydrogen). Carbon monoxide 
(CO) and dihydrogen (H<INF>2</INF>) are made by steam-methane reforming 
(CH<INF>4</INF> and H<INF>2</INF>O). Ethylene oxide (EO) is made from 
oxidizing ethylene (C<INF>2</INF>H<INF>4</INF>).
    Additional information on the production process:
    <bullet> The methoxytriglycol reaction (methanol + EO) is base 
catalyzed, using a small amount of metal hydroxide to produce 
methoxide.
    [cir] Since the amount of metal hydroxide used to produce propylene 
glycol methyl ether is very small, the metal hydroxide has been 
excluded from the stoichiometric material consumption equation; 
including the metal hydroxide would lead to a distorted conversion 
factor.
    <bullet> Once methoxide is made, it is regenerated following 
conversion to the product in the presence of EO as follows:

[cir] Methoxide + 3 EO [rarr] methoxytriglycol- alkoxide
[cir] Methoxytriglycol-alkoxide + methanol [rarr] methoxytriglycol + 
methoxide (goes back to participate in the reaction above).

    <bullet> Regenerated methoxide in the presence of EO will 
perpetually react until all EO is consumed or the reaction is halted 
through the use of controls.
    (7) Stoichiometric material consumption equation, based on process 
identified as predominant method of production:

3 C<INF>2</INF>H<INF>4</INF> (ethylene) + 1.5 O<INF>2</INF> (oxygen) + 
CH<INF>4</INF> (methane) + H<INF>2</INF>O (water) [rarr] H<INF>2</INF> 
(hydrogen) + C<INF>7</INF>H<INF>16</INF>O<INF>4</INF> 
(methoxytriglycol)

    (8) Tax rate calculated by Petitioner, based on Petitioner's 
conversion factors for taxable chemicals used in production of 
substance:
    (i) Tax rate: $5.66 per ton.
    (ii) Conversion factors: 0.51 for ethylene, 0.10 for methane.
    (9) Public docket number: IRS-2024-0040.

Michael Beker,
Senior Counsel (Passthroughs and Special Industries), IRS Office of 
Chief Counsel.
[FR Doc. 2024-19604 Filed 8-30-24; 8:45 am]
BILLING CODE 4830-01-P


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Indexed from Federal Register on September 3, 2024.

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