Sec. 1301. Virgin plastic excise tax
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Subchapter E of chapter 32 of subtitle D of the Internal Revenue Code of 1986 is amended to read as follows: There is hereby imposed a virgin plastic excise tax on the manufacturer, producer, or importer of a covered item. The virgin plastic excise tax imposed by subsection
(a)is $0.05 per pound of virgin plastic. In the case of any taxable year beginning after 2021, the dollar amounts in paragraph
(1)shall be increased by an amount equal to— such dollar amount, multiplied by the cost-of-living adjustment determined under section 1(f)(3) for the calendar year in which the taxable year begins, determined by substituting in subparagraph (A)(ii) calendar year 2021 for calendar year 2016 . If any increase determined under subparagraph
(A)is not a multiple of 1/10 of a cent, such increase shall be rounded to the nearest multiple of 1/10 of a cent. The Secretary shall issue such regulations or other guidance, including regulations or guidance for the determination of the amount of virgin plastic in a covered item, as may be necessary or appropriate to carry out the purposes of this section. For purposes of this section: The term covered item means a single-use plastic product made in part or whole of virgin plastic, except— a medical product that the Secretary of Health and Human Services determines needs to be made of virgin plastic for public health or the health of the user, a container for— a drug regulated under the Federal Food, Drug, and Cosmetic Act, infant formula, or a meal replacement liquid, a personal or feminine hygiene product that could be unsafe or unsanitary to recycle, a sexual health product, and packaging for— a product described in subparagraphs
(A)through (E), or used for the shipment of hazardous materials that is prohibited from being composed of used materials under section 178.509 or 178.522 of title 49, Code of Federal Regulations (as in effect on the date of enactment of this subtitle). The term packaging means a package, container, packing materials, or other material used for the containment, protection, handling, delivery and presentation of goods. The term virgin plastic means a primary polymer or resin— of any form of ethylene, propylene, polyethylene, polypropylene, polyvinyl chloride, or a raw plastic polymer, and generated through processing byproducts associated with petroleum, natural gas, coal, or vegetation based resources. The term single-use product means a consumer product that is routinely disposed of, recycled, or otherwise discarded after a single use. . Congress finds the international mitigation of virgin, single-use plastics to be of national importance. Therefore, Congress encourages the United States Trade Representative and the Secretary of State, as appropriate, to engage in negotiations with other nations with the goal of forming treaties, environmental agreements, accords, partnerships or any other instrument that— effectively reduces global single-use plastic production from virgin polymers to 10 percent of 2010 levels by 2050, and respects the principle of common but differentiated responsibilities and respective capabilities. The amendments by this section shall apply to covered items, as such term is defined in section 4191 of such Code, manufactured, produced, or imported after the earlier of— 1 year after the Secretary issues regulations implementing section 4191 of such Code, or 2 years after date of enactment of this Act. The table of subchapters for chapter 32 of such Code is amended by amending the item relating to subchapter E to read as follows: E. Virgin plastic excise tax .