Notice2024-19606
Superfund Tax on Chemical Substances; Request to Modify List of Taxable Substances; Notice of Filing for Propylene Glycol n-Propyl Ether
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 propylene glycol n-propyl ether 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
<html>
<head>
<title>Federal Register, Volume 89 Issue 170 (Tuesday, September 3, 2024)</title>
</head>
<body><pre>
[Federal Register Volume 89, Number 170 (Tuesday, September 3, 2024)]
[Notices]
[Page 71791]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2024-19606]
[[Page 71791]]
-----------------------------------------------------------------------
DEPARTMENT OF THE TREASURY
Internal Revenue Service
Superfund Tax on Chemical Substances; Request to Modify List of
Taxable Substances; Notice of Filing for Propylene Glycol n-Propyl
Ether
AGENCY: Internal Revenue Service (IRS), Treasury.
ACTION: Notice of filing and request for comments.
-----------------------------------------------------------------------
SUMMARY: This notice of filing announces that a petition has been filed
requesting that propylene glycol n-propyl ether 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-2024-0043 or propylene glycol n-
propyl ether) 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 Comments cannot be edited or withdrawn once submitted to the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 Propylene Glycol n-Propyl Ether),
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 propylene glycol n-propyl ether be added to the
list of taxable substances under section 4672(a) of the Internal
Revenue Code (List). The petition requesting the addition of propylene
glycol n-propyl ether 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: Propylene glycol n-propyl ether.
(2) Petitioner: The Dow Chemical Company, an importer and exporter
of propylene glycol n-propyl ether.
(3) Proposed classification numbers:
(i) HTSUS number: 2909.49.60.00.
(ii) Schedule B number: 2909.49.0000.
(iii) CAS number: 1569-01-3.
(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, propylene
glycol n-propyl ether is a propylene glycol and propanol based ether-
alcohol solvent. Propylene glycol n-propyl ether, a liquid, is used in
a variety of applications including coatings and cleaning.
Propylene glycol n-propyl ether is made from propylene, chlorine,
sodium hydroxide, ethylene, and methane. Taxable chemicals constitute
100.00 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.
Propylene glycol n-propyl ether is produced via the alkoxylation
process (also known as ring opening of an epoxide) using n-propylene
and propylene oxide. Propylene oxide is made by hydrochlorination
(chlorine, propylene, NaOH). The n-propanol is manufactured by
catalytic hydrogenation of propionaldehyde (hydrogen (H<INF>2</INF>) +
propionaldehyde (CH<INF>3</INF>CH<INF>2</INF>CHO)). Propionaldehyde is
produced by hydroformulation of ethylene (C<INF>2</INF>H<INF>4</INF>)
using carbon monoxide (CO). The n-propanol is made by hydrogenating
propionaldehyde in the presence of a catalyst.
Additional information on the production process:
<bullet> The propylene glycol n-propyl ether alkoxylation reaction
(n-propanol + propylene oxide) is base catalyzed, using a small amount
of metal hydroxide to produce methoxide. Once propoxide is made, it is
regenerated following conversion to the product in the presence of
propylene oxide. Regenerated propoxide in the presence of propylene
oxide will perpetually react until all propylene oxide is consumed or
the reaction is halted through the use of controls.
<bullet> Since the amount of metal hydroxide used to produce
propylene glycol n-propyl 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.
(7) Stoichiometric material consumption equation, based on process
identified as predominant method of production:
C<INF>3</INF>H<INF>6</INF> (propylene) + Cl<INF>2</INF> (chlorine) + 2
NaOH (sodium hydroxide) + C<INF>2</INF>H<INF>4</INF> (ethylene) +
CH<INF>4</INF> (methane) [rarr] 2 NaCl (sodium chloride) +
H<INF>2</INF> (hydrogen) + C<INF>6</INF>H<INF>14</INF>O<INF>2</INF>
(propylene glycol n-propyl ether)
(8) Tax rate calculated by Petitioner, based on Petitioner's
conversion factors for taxable chemicals used in production of
substance:
(i) Tax rate: $10.43 per ton.
(ii) Conversion factors: 0.36 for propylene, 0.60 for chlorine,
0.68 for sodium hydroxide, 0.24 for ethylene, and 0.14 for methane.
(9) Public docket number: IRS-2024-0043.
Michael Beker,
Senior Counsel (Passthroughs and Special Industries), IRS Office of
Chief Counsel.
[FR Doc. 2024-19606 Filed 8-30-24; 8:45 am]
BILLING CODE 4830-01-P
</pre></body>
</html>Indexed from Federal Register on September 3, 2024.
This is legal information, not legal advice. Laws vary by jurisdiction and change frequently. Always verify current law with official sources and consult a licensed attorney in your jurisdiction for advice on your specific situation.