PFAS cleanup reimbursements would be excluded from individuals’ taxable income

Individuals would exclude PFAS cleanup reimbursements from their federal taxable income. The exclusion would cover individual taxpayers. The money must be attributable to reimbursement for cleaning up contamination by chemicals known as PFAS. The exclusion would apply to reimbursements made in tax years beginning after December 31, 2020.

Individuals could seek a refund or tax credit for overpayments tied to the PFAS reimbursement exclusion. This deadline rule would cover claims whose usual deadline expires before the one-year period ends, including deadlines that have already expired. Only the part of a tax overpayment caused by this exclusion would qualify. Claims would have to be filed before the close of the one-year period beginning on the date the bill becomes law.