This Act may be cited as the No Taxation on PFAS Remediation Act.

(a) In general Part III of subchapter B of chapter 1 of the Internal Revenue Code of 1986 is amended by inserting after section 139L the following new section: 139M. PFAS remediation reimbursements In the case of an individual, gross income shall not include any amounts received by the taxpayer during the taxable year which are attributable to a reimbursement for remediation of contamination by a perfluoroalkyl or polyfluoroalkyl substance.. (b) Extension of statute of limitation on credit or refund If the period of limitation on a credit or refund resulting from the amendment made by subsection (a) expires before the end of the 1-year period beginning on the date of the enactment of this Act, refund or credit of such overpayment (to the extent attributable to such amendments) may, nevertheless, be made or allowed if claim therefor is filed before the close of such 1-year period. (c) Clerical amendment The table of sections for such part III is amended by inserting after the item relating to section 139L the following new item: Sec. 139M. PFAS remediation reimbursements.. (d) Effective date The amendments made by this section shall apply to reimbursements made in taxable years beginning after December 31, 2020.