119-hr4466

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4466 Introduced in House

    (IH) ]

<DOC>

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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