CIRCLE Act
Summary
What This Bill Does
The CIRCLE Act responds to findings that EPA has a 50 percent national recycling goal for 2030 while the U.S. recycling rate is around 30 percent. It adds Internal Revenue Code section 48F, creating a recycling property investment credit equal to 30 percent of qualified investment in eligible property. Eligible property must be qualified recycling property, depreciable or amortizable, and newly constructed, reconstructed, added, erected, or acquired for original use by the taxpayer. The bill incorporates rules similar to prior investment-credit and prevailing-wage/apprenticeship provisions, adds a 10 percentage-point bonus for qualifying investments, allows rules similar to direct-pay election treatment under section 6417, and includes phase-out rules beginning with eligible property determination dates on or after January 1, 2026. The credit is designed to modernize recycling operations, increase domestic recycled-material supply, and support responsible end markets.
Who Benefits and How
Recycling facility owners benefit from a 30 percent investment credit for qualified recycling property. Domestic recycled-material processors benefit if the credit helps modernize facilities and expand supply. Manufacturers using recycled feedstock benefit from more reliable domestic recycled-material markets. Communities with recycling infrastructure benefit from investment in local circular-economy capacity.
Who Bears the Burden and How
Treasury and IRS must administer new section 48F, bonus-credit rules, direct-pay rules, and phase-out rules. Taxpayers claiming the credit must document qualified investment, eligible property, original use, and any bonus-credit requirements. Federal taxpayers bear revenue losses from the recycling investment credit. Producers of virgin materials may face stronger competition from subsidized domestic recycled-content supply.
Key Provisions
- Creates Internal Revenue Code section 48F for a recycling property investment credit.
- Provides a 30 percent credit for qualified investment in eligible recycling property.
- Adds a 10 percentage-point bonus for qualifying investments that satisfy incorporated requirements.
- Authorizes rules similar to direct-pay election treatment for applicable credit claims.
- Establishes phase-out rules for eligible property determination dates beginning on or after January 1, 2026.
Evidence Chain:
This summary is generated from the full bill text using AI analysis. Expand "Detailed Analysis" below for identified beneficiaries/burden bearers with clause-level evidence links.
At a Glance
What This Bill Does
Creates a 30 percent investment tax credit for qualified recycling property, with bonus-credit, direct-pay, and phase-out rules to support domestic recycling infrastructure.
Key Policy Areas
Tax Policy, Recycling, Manufacturing
Primary Purpose
Creates a 30 percent investment tax credit for qualified recycling property, with bonus-credit, direct-pay, and phase-out rules to support domestic recycling infrastructure.
Policy Domains
Resolution provisions
Identified Gains
- Recycling facility owners
- Domestic recycled-material processors
- Manufacturers using recycled feedstock
- Communities with recycling infrastructure
Identified Costs
- Treasury Department
- Taxpayers claiming the credit
- Federal taxpayers
- Producers of virgin materials
Sponsors
Legislative Progress
In CommitteeMr. Suozzi (for himself and Mr. Fitzpatrick) introduced the following …
Referred to the House Committee on Ways and Means.
Introduced in House
Stakeholder Effects
cui bono?How this legislation distributes effects. Mention counts reflect frequency, not effect magnitude.
Domestic recycled-material processors, Recycling facility owners
Bill Structure & Actor Mappings
Who is "The Secretary" in each section?
We use a combination of our own taxonomy and classification in addition to large language models to assess meaning and potential beneficiaries. High confidence means strong textual evidence. Always verify with the original bill text.
Learn more about our methodology