Notice2024-19607
Superfund Tax on Chemical Substances; Request To Modify List of Taxable Substances; Notice of Filing for Propylene Glycol Methyl 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 methyl 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
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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]
[Pages 71784-71785]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2024-19607]
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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 Propylene Glycol Methyl Ether
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 propylene glycol methyl 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.
[[Page 71785]]
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-2024-0042 or propylene glycol methyl
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Comments cannot be edited or withdrawn once submitted to the Federal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 Methyl 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 methyl 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 methyl 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 methyl ether.
(2) Petitioner: The Dow Chemical Company, an importer and exporter
of propylene glycol methyl ether.
(3) Proposed classification numbers:
(i) HTSUS number: 2909.49.6000.
(ii) Schedule B number: 2909.49.0000.
(iii) CAS number: 107-98-2.
(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 methyl ether is a fast evaporating ether-alcohol solvent with
high water solubility and active solvency used in a variety of
applications such as solvent-based coatings, household and industrial
cleaners, and agricultural pesticides.
Propylene glycol methyl ether is made from propylene, chlorine,
sodium hydroxide, 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 methyl ether is made via the alkoxylation process
(also known as ring opening of an epoxide) using methanol and propylene
oxide. 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). Propylene oxide
is made by hydrochlorination (chlorine (Cl<INF>2</INF>), propylene
(C<INF>3</INF>H<INF>6</INF>), and sodium hydroxide (NaOH)).
Additional information on the production process:
<bullet> The propylene glycol methyl ether alkoxylation reaction
(methanol + propylene oxide) is base catalyzed, using a small amount of
metal hydroxide to produce methoxide. Once methoxide is made, it is
regenerated following conversion to the product in the presence of
propylene oxide. Regenerated methoxide 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.
[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.
(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) + CH<INF>4</INF> (methane) [rarr]
C<INF>4</INF>H<INF>10</INF>O<INF>2</INF> (propylene glycol methyl
ether) + 2 NaCl (sodium chloride) + H<INF>2</INF> (hydrogen)
(8) Tax rate calculated by Petitioner, based on Petitioner's
conversion factors for taxable chemicals used in production of
substance:
(i) Tax rate: $10.58 per ton.
(ii) Conversion factors: 0.47 for propylene, 0.79 for chlorine,
0.89 for sodium hydroxide, and 0.18 for methane.
(9) Public docket number: IRS-2024-0042.
Michael Beker,
Senior Counsel (Passthroughs and Special Industries), IRS Office of
Chief Counsel.
[FR Doc. 2024-19607 Filed 8-30-24; 8:45 am]
BILLING CODE 4830-01-P
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