Notice2025-08317

Superfund Tax on Chemical Substances; Request To Modify List of Taxable Substances; Notice of Filing for Linear Nonyl Phthalate

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
May 13, 2025

Issuing agencies

Treasury DepartmentInternal Revenue Service

Abstract

This notice of filing announces that a petition has been filed requesting that linear nonyl phthalate 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 90 Issue 91 (Tuesday, May 13, 2025)</title>
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[Federal Register Volume 90, Number 91 (Tuesday, May 13, 2025)]
[Notices]
[Pages 20348-20349]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2025-08317]


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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 Linear Nonyl Phthalate

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 linear nonyl phthalate 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 July 14, 2025.

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="https://www.regulations.gov">https://www.regulations.gov</a> 
(indicate public docket number IRS-2025-0039 or linear nonyl phthalate) 
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cannot be edited or withdrawn once submitted to the Federal eRulemaking 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 Linear Nonyl Phthalate), 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="https://www.regulations.gov">https://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: Jacob W. Peeples 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 linear nonyl phthalate be added to the list of 
taxable substances under section 4672(a) of the Internal Revenue Code 
(List). The petition requesting the addition of linear nonyl phthalate 
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: Linear nonyl phthalate.
    (2) Petitioner: Exxon Mobil Corporation, an exporter of linear 
nonyl phthalate.
    (3) Proposed classification numbers:
    (i) HTSUS number: 2917.33.00.50.
    (ii) Schedule B number: 2917.33.0050.
    (iii) CAS number: 68515-45-7.
    (4) Petition filing dates:
    (i) Petition filing date for purposes of making a determination: 
April 8, 2025.
    (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: Linear nonyl phthalate is a 
plasticizer used when greater low-temperature flexibility or a specific 
end use application requires unique processing. It is suitable for 
flexible PVC products, and it exhibits strong, low-temperature 
performance and improved resistance to UV light.
    Linear nonyl phthalate is made from ethylene, orthoxylene (an 
isomer of xylene), carbon monoxide, hydrogen, and oxygen. Taxable 
chemicals constitute 67.4 percent by weight of the materials used to 
produce this substance.
    (6) Process identified in petition as predominant method of 
production of substance: The predominant method of producing linear 
nonyl phthalate is via Esterification.
    The linear nonyl phthalate di-ester is made by reacting a mix of 
primary C9 alcohol with phthalic anhydride. The ester is produced by 
esterification of 2 moles of a linear C9 alcohol with one

[[Page 20349]]

mole of phthalic anhydride in the presence of an acidic catalyst.
    By using excess alcohol (up to 25% molar excess of C9 alcohol) and 
removing the water, the equilibrium is shifted towards the formation of 
the di-ester. The reactants are charged into a reactor and heated up. 
The reaction rate is accelerated by using, for example, tetra-n-butyl 
titanate introduced at high temperature (140 [deg]C-250 [deg]C), while 
removing the water formed.
    The final ester is purified by neutralizing with a base such as an 
aqueous solution of sodium carbonate. Then excess alcohol is distilled 
off using steam/nitrogen stripping after neutralization. The remaining 
excess water is distilled off and the ester is then filtered using 
filter agents.
    The degree of purity of the ester is up to >99.5 wt%. The overall 
formula is C<INF>26</INF>H<INF>42</INF>O<INF>4</INF> and the molecular 
weight is 418 g/mole, based on an average carbon number of the alkyl 
groups, with 9 carbons being the predominant number.
    The linear C9 alcohol is obtained through hydroformylation of 
octene. Octene is obtained through ethylene oligomerization. 
Hydroformylation is the reaction of octene, at high pressure and 
temperature in the presence of a catalyst, with syngas (a mixture of 
carbon monoxide and hydrogen). An alcohol with one carbon atom higher 
versus the starting olefin is obtained, hence octene gives nonanol. The 
hydroformylation induces 0.3 branches per molecule predominantly on the 
2-postion carbon of the alcohol. phthalic anhydride is obtained through 
air oxidation of o.xylene.
    (7) Stoichiometric material consumption equation, based on process 
identified as predominant method of production:

8 C<INF>2</INF>H<INF>4</INF> [ethylene] + 2 CO [carbon monoxide] + 4 
H<INF>2</INF> [hydrogen] + C<INF>8</INF>H<INF>10</INF> [orthoxylene] + 
3 O<INF>2</INF> [oxygen] [rarr] 
C<INF>26</INF>H<INF>42</INF>O<INF>4</INF> [linear nonyl phthalate] + 4 
H<INF>2</INF>O [water]

    (8) Tax rate calculated by Petitioner, based on Petitioner's 
conversion factors for taxable chemicals used in production of 
substance:
    (i) Tax rate: $7.69 per ton.
    (ii) Conversion factors: 0.54 for ethylene and 0.25 for xylene.
    (9) Public docket number: IRS-2025-0039.

Michael Beker,
Senior Counsel (Energy, Credits, and Excise Tax), IRS Office of Chief 
Counsel.
[FR Doc. 2025-08317 Filed 5-12-25; 8:45 am]
BILLING CODE 4830-01-P


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Indexed from Federal Register on May 13, 2025.

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.