[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4466 Introduced in House (IH)]
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119th CONGRESS
1st Session
H. R. 4466
To amend the Internal Revenue Code of 1986 to establish a recycling
property investment credit, and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
July 16, 2025
Mr. Suozzi (for himself and Mr. Fitzpatrick) introduced the following
bill; which was referred to the Committee on Ways and Means
_______________________________________________________________________
A BILL
To amend the Internal Revenue Code of 1986 to establish a recycling
property investment credit, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Cultivating Investment in Recycling
and Circular Local Economies Act of 2025'' or the ``CIRCLE Act''.
SEC. 2. FINDINGS.
Congress finds the following:
(1) The national recycling goal set by the Environmental
Protection Agency is 50 percent by 2030.
(2) America's recycling rate hovers around 30 percent.
(3) The establishment of a tax credit for investment in
existing and new recycling infrastructure would promote
recycling by facilitating modernized and upgraded recycling
operations and increasing supply of domestically recycled
materials.
(4) New recycling infrastructure would support responsible
end markets by helping to meet significant demand for
domestically sourced recycled material.
(5) Domestic markets face increased competition from
international actors who may dump virgin materials or not-
verifiably-recycled content in United States markets,
undercutting the domestic recycling economy.
(6) It is in the best interests of the United States to
fully develop our recycling capacities.
SEC. 3. RECYCLING PROPERTY INVESTMENT CREDIT.
(a) In General.--Subpart E of part IV of subchapter A of chapter 1
of the Internal Revenue Code of 1986 is amended by inserting after
section 48E the following new section:
``SEC. 48F. RECYCLING PROPERTY INVESTMENT CREDIT.
``(a) In General.--For purposes of section 46, the recycling
property investment credit for any taxable year is an amount equal to
30 percent of the qualified investment for such taxable year.
``(b) Qualified Investment.--
``(1) In general.--For purposes of subsection (a), the
qualified investment for any taxable year is the basis of any
eligible property placed in service by the taxpayer during such
taxable year.
``(2) Eligible property.--For purposes of this section, the
term `eligible property' means property--
``(A) which is qualified recycling property,
``(B) with respect to which depreciation (or
amortization in lieu of depreciation) is allowable, and
``(C)(i) the construction, reconstruction,
addition, or erection of which is completed by the
taxpayer, or
``(ii) which is acquired by the taxpayer if the
original use of such property commences with the
taxpayer.
``(c) Special Rules.--For purposes of this section--
``(1) Certain progress expenditure rules made applicable.--
Rules similar to the rules of subsections (c)(4) and (d) of
section 46 (as in effect on the day before the date of the
enactment of the Revenue Reconciliation Act of 1990) shall
apply.
``(2) Special rule for certain subsidized property.--Rules
similar to section 45(b)(3) shall apply.
``(3) Domestic content bonus credit amount.--
``(A) In general.--In the case of any qualified
investment which satisfies the requirement under
subparagraph (B), the amount of the credit determined
under subsection (a) (determined without regard to this
paragraph before the application of subsection (d) and
after the application of any other provision of this
section) shall be increased by an amount equal to 10
percentage points of the amount so determined.
``(B) Requirement.--Rules similar to the rules of
section 45(b)(9)(B) shall apply.
``(4) Phaseout for elective payment.--In the case of a
taxpayer making an election under section 6417 with respect to
a credit under this section, rules similar to the rules of
section 45(b)(10) shall apply.
``(d) Credit Phase-Out.--
``(1) In general.--The amount of the credit determined
under subsection (a) with respect to any qualified investment
shall be equal to the product of--
``(A) the amount of the credit determined under
subsection (a) without regard to this subsection,
multiplied by
``(B) the phase-out percentage under paragraph (2).
``(2) Phase-out percentage.--The phase-out percentage under
this paragraph is equal to--
``(A) in the case of any eligible property with a
determination date beginning on or after January 1,
2026, and before December 31, 2032, 100 percent,
``(B) in the case of any eligible property with a
determination date beginning on or after January 1,
2033, and before December 31, 2033, 80 percent,
``(C) in the case of any eligible property with a
determination date beginning on or after January 1,
2034, and before December 31, 2034, 60 percent,
``(D) in the case of any eligible property with a
determination date beginning on or after January 1,
2035, and before December 31, 2035, 40 percent,
``(E) in the case of any eligible property with a
determination date beginning on or after January 1,
2036, and before December 31, 2036, 20 percent, and
``(F) in the case of any eligible property with a
determination date beginning on or after January 1,
2037, 0 percent.
``(3) Determination date.--For purposes of paragraph (2),
the determination date of an eligible property is--
``(A) in the case such property is described in
subsection (b)(2)(C)(i), the date on which the
construction, reconstruction, addition, or erection of
such property begins, and
``(B) in any other case, the date on which such
property is placed in service.
``(e) Denial of Double Benefit.--In the case of any eligible
property with respect to which credit is allowed under subsection (a)--
``(1) no other credit or deduction shall be allowed for, or
by reason of, such property to the extent of the amount of such
credit, and
``(2) the basis of such property shall be reduced by the
amount of such credit.
``(f) Regulations and Guidance.--The Secretary shall issue such
regulations or other guidance as the Secretary determines necessary to
carry out the purposes of this section, including regulations or other
guidance which provides for requirements for recordkeeping or
information reporting for purposes of administering the requirements of
this section.
``(g) Definitions.--For purposes of this section--
``(1) Qualified recycling property.--The term `qualified
recycling property' has the meaning given the term `reuse and
recycling property' in section 168(m)(3)(A).
``(2) Qualified reuse and recyclable materials.--The term
`qualified reuse and recyclable materials' has the meaning
given such term in section 168(m)(3)(B), except that for
purposes of this section such term includes any video display
device and any computer device (including computer peripherals,
such as keyboards, mice, speakers, cables, printers, and
scanners).
``(3) Recycle.--The term `recycle' has the meaning given
such term in section 168(m)(3)(C), except that for purposes of
this section such term does not include--
``(A) any method of sorting, processing, and
aggregating materials from solid waste that--
``(i) does not preserve the original
quality of such materials, and
``(ii) results in the aggregated material
not being usable--
``(I) for the initial purpose (or a
substantially similar purpose) of such
materials, or
``(II) as feedstock in lieu of
virgin feedstock in the production of
specification grade commodities, or
``(B) the primary use of waste or qualified reuse
and recyclable materials--
``(i) as a fuel or fuel substitute;
``(ii) for the production or generation of
energy (including heat and electricity);
``(iii) for incineration;
``(iv) for alternate operating cover; or
``(v) within the footprint of a
landfill.''.
(b) Credit Made Part of Investment Credit.--Section 46 of such Code
is amended by striking ``and'' at the end of paragraph (6), by striking
the period at the end of paragraph (7) and inserting ``, and'', and by
adding at the end the following new paragraph:
``(8) the recycling property investment credit.''.
(c) Clerical Amendment.--The table of sections for subpart E of
part IV of subchapter A of chapter 1 of such Code is amended by
inserting after the item relating to section 48E the following new
item:
``48F. Recycling property investment credit.''.
(d) Effective Date.--The amendments made by this section shall
apply to--
(1) in the case of property described in section
48F(b)(2)(C)(i) of the Internal Revenue Code of 1986 (as added
by subsection (a)), property which is constructed,
reconstructed, added, or erected after December 31, 2025, and
(2) in any other case, property which is placed in service
after December 31, 2025.
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