CIRCLE Act Cultivating Investment in Recycling and Circular Local Economies Act of 2025

I 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. F ITZPATRICK) 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 Representa-1 tives of the United States of America in Congress assembled, 2 SECTION 1. SHORT TITLE. 3 This Act may be cited as the ‘‘Cultivating Investment 4 in Recycling and Circular Local Economies Act of 2025’’ 5 or the ‘‘CIRCLE Act’’. 6 SEC. 2. FINDINGS. 7 Congress finds the following: 8 (1) The national recycling goal set by the Envi-9 ronmental Protection Agency is 50 percent by 2030. 10 VerDate Sep 11 2014 22:28 Jul 25, 2025 Jkt 059200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\H4466.IH H4466ssavage on LAPJG3WLY3PROD with BILLS 2 •HR 4466 IH (2) America’s recycling rate hovers around 30 1 percent. 2 (3) The establishment of a tax credit for invest-3 ment in existing and new recycling infrastructure 4 would promote recycling by facilitating modernized 5 and upgraded recycling operations and increasing 6 supply of domestically recycled materials. 7 (4) New recycling infrastructure would support 8 responsible end markets by helping to meet signifi-9 cant demand for domestically sourced recycled mate-10 rial. 11 (5) Domestic markets face increased competi-12 tion from international actors who may dump virgin 13 materials or not-verifiably-recycled content in United 14 States markets, undercutting the domestic recycling 15 economy. 16 (6) It is in the best interests of the United 17 States to fully develop our recycling capacities. 18 SEC. 3. RECYCLING PROPERTY INVESTMENT CREDIT. 19 (a) I N GENERAL.—Subpart E of part IV of sub-20 chapter A of chapter 1 of the Internal Revenue Code of 21 1986 is amended by inserting after section 48E the fol-22 lowing new section: 23 VerDate Sep 11 2014 22:28 Jul 25, 2025 Jkt 059200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\H4466.IH H4466ssavage on LAPJG3WLY3PROD with BILLS 3 •HR 4466 IH ‘‘SEC. 48F. RECYCLING PROPERTY INVESTMENT CREDIT. 1 ‘‘(a) I N GENERAL.—For purposes of section 46, the 2 recycling property investment credit for any taxable year 3 is an amount equal to 30 percent of the qualified invest-4 ment for such taxable year. 5 ‘‘(b) QUALIFIED INVESTMENT.— 6 ‘‘(1) I N GENERAL .—For purposes of subsection 7 (a), the qualified investment for any taxable year is 8 the basis of any eligible property placed in service by 9 the taxpayer during such taxable year. 10 ‘‘(2) E LIGIBLE PROPERTY .—For purposes of 11 this section, the term ‘eligible property’ means prop-12 erty— 13 ‘‘(A) which is qualified recycling property, 14 ‘‘(B) with respect to which depreciation (or 15 amortization in lieu of depreciation) is allow-16 able, and 17 ‘‘(C)(i) the construction, reconstruction, 18 addition, or erection of which is completed by 19 the taxpayer, or 20 ‘‘(ii) which is acquired by the taxpayer if 21 the original use of such property commences 22 with the taxpayer. 23 ‘‘(c) S PECIAL RULES.—For purposes of this sec-24 tion— 25 VerDate Sep 11 2014 22:28 Jul 25, 2025 Jkt 059200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\H4466.IH H4466ssavage on LAPJG3WLY3PROD with BILLS 4 •HR 4466 IH ‘‘(1) C ERTAIN PROGRESS EXPENDITURE RULES 1 MADE APPLICABLE .—Rules similar to the rules of 2 subsections (c)(4) and (d) of section 46 (as in effect 3 on the day before the date of the enactment of the 4 Revenue Reconciliation Act of 1990) shall apply. 5 ‘‘(2) S PECIAL RULE FOR CERTAIN SUBSIDIZED 6 PROPERTY.—Rules similar to section 45(b)(3) shall 7 apply. 8 ‘‘(3) D OMESTIC CONTENT BONUS CREDIT 9 AMOUNT.— 10 ‘‘(A) I N GENERAL .—In the case of any 11 qualified investment which satisfies the require-12 ment under subparagraph (B), the amount of 13 the credit determined under subsection (a) (de-14 termined without regard to this paragraph be-15 fore the application of subsection (d) and after 16 the application of any other provision of this 17 section) shall be increased by an amount equal 18 to 10 percentage points of the amount so deter-19 mined. 20 ‘‘(B) REQUIREMENT.—Rules similar to the 21 rules of section 45(b)(9)(B) shall apply. 22 ‘‘(4) P HASEOUT FOR ELECTIVE PAYMENT .—In 23 the case of a taxpayer making an election under sec-24 tion 6417 with respect to a credit under this section, 25 VerDate Sep 11 2014 22:28 Jul 25, 2025 Jkt 059200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\H4466.IH H4466ssavage on LAPJG3WLY3PROD with BILLS 5 •HR 4466 IH rules similar to the rules of section 45(b)(10) shall 1 apply. 2 ‘‘(d) CREDIT PHASE-OUT.— 3 ‘‘(1) I N GENERAL .—The amount of the credit 4 determined under subsection (a) with respect to any 5 qualified investment shall be equal to the product 6 of— 7 ‘‘(A) the amount of the credit determined 8 under subsection (a) without regard to this sub-9 section, multiplied by 10 ‘‘(B) the phase-out percentage under para-11 graph (2). 12 ‘‘(2) PHASE-OUT PERCENTAGE .—The phase-out 13 percentage under this paragraph is equal to— 14 ‘‘(A) in the case of any eligible property 15 with a determination date beginning on or after 16 January 1, 2026, and before December 31, 17 2032, 100 percent, 18 ‘‘(B) in the case of any eligible property 19 with a determination date beginning on or after 20 January 1, 2033, and before December 31, 21 2033, 80 percent, 22 ‘‘(C) in the case of any eligible property 23 with a determination date beginning on or after 24 VerDate Sep 11 2014 22:28 Jul 25, 2025 Jkt 059200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6201 E:\BILLS\H4466.IH H4466ssavage on LAPJG3WLY3PROD with BILLS 6 •HR 4466 IH January 1, 2034, and before December 31, 1 2034, 60 percent, 2 ‘‘(D) in the case of any eligible property 3 with a determination date beginning on or after 4 January 1, 2035, and before December 31, 5 2035, 40 percent, 6 ‘‘(E) in the case of any eligible property 7 with a determination date beginning on or after 8 January 1, 2036, and before December 31, 9 2036, 20 percent, and 10 ‘‘(F) in the case of any eligible property 11 with a determination date beginning on or after 12 January 1, 2037, 0 percent. 13 ‘‘(3) D ETERMINATION DATE .—For purposes of 14 paragraph (2), the determination date of an eligible 15 property is— 16 ‘‘(A) in the case such property is described 17 in subsection (b)(2)(C)(i), the date on which 18 the construction, reconstruction, addition, or 19 erection of such property begins, and 20 ‘‘(B) in any other case, the date on which 21 such property is placed in service. 22 ‘‘(e) DENIAL OF DOUBLE BENEFIT.—In the case of 23 any eligible property with respect to which credit is al-24 lowed under subsection (a)— 25 VerDate Sep 11 2014 22:28 Jul 25, 2025 Jkt 059200 PO 00000 Frm 00006 Fmt 6652 Sfmt 6201 E:\BILLS\H4466.IH H4466ssavage on LAPJG3WLY3PROD with BILLS 7 •HR 4466 IH ‘‘(1) no other credit or deduction shall be al-1 lowed for, or by reason of, such property to the ex-2 tent of the amount of such credit, and 3 ‘‘(2) the basis of such property shall be reduced 4 by the amount of such credit. 5 ‘‘(f) R EGULATIONS AND GUIDANCE.—The Secretary 6 shall issue such regulations or other guidance as the Sec-7 retary determines necessary to carry out the purposes of 8 this section, including regulations or other guidance which 9 provides for requirements for recordkeeping or informa-10 tion reporting for purposes of administering the require-11 ments of this section. 12 ‘‘(g) D EFINITIONS.—For purposes of this section— 13 ‘‘(1) Q UALIFIED RECYCLING PROPERTY .—The 14 term ‘qualified recycling property’ has the meaning 15 given the term ‘reuse and recycling property’ in sec-16 tion 168(m)(3)(A). 17 ‘‘(2) Q UALIFIED REUSE AND RECYCLABLE MA -18 TERIALS.—The term ‘qualified reuse and recyclable 19 materials’ has the meaning given such term in sec-20 tion 168(m)(3)(B), except that for purposes of this 21 section such term includes any video display device 22 and any computer device (including computer pe-23 ripherals, such as keyboards, mice, speakers, cables, 24 printers, and scanners). 25 VerDate Sep 11 2014 22:28 Jul 25, 2025 Jkt 059200 PO 00000 Frm 00007 Fmt 6652 Sfmt 6201 E:\BILLS\H4466.IH H4466ssavage on LAPJG3WLY3PROD with BILLS 8 •HR 4466 IH ‘‘(3) R ECYCLE.—The term ‘recycle’ has the 1 meaning given such term in section 168(m)(3)(C), 2 except that for purposes of this section such term 3 does not include— 4 ‘‘(A) any method of sorting, processing, 5 and aggregating materials from solid waste 6 that— 7 ‘‘(i) does not preserve the original 8 quality of such materials, and 9 ‘‘(ii) results in the aggregated mate-10 rial not being usable— 11 ‘‘(I) for the initial purpose (or a 12 substantially similar purpose) of such 13 materials, or 14 ‘‘(II) as feedstock in lieu of vir-15 gin feedstock in the production of 16 specification grade commodities, or 17 ‘‘(B) the primary use of waste or qualified 18 reuse and recyclable materials— 19 ‘‘(i) as a fuel or fuel substitute; 20 ‘‘(ii) for the production or generation 21 of energy (including heat and electricity); 22 ‘‘(iii) for incineration; 23 ‘‘(iv) for alternate operating cover; or 24 VerDate Sep 11 2014 22:28 Jul 25, 2025 Jkt 059200 PO 00000 Frm 00008 Fmt 6652 Sfmt 6201 E:\BILLS\H4466.IH H4466ssavage on LAPJG3WLY3PROD with BILLS 9 •HR 4466 IH ‘‘(v) within the footprint of a land-1 fill.’’. 2 (b) CREDIT MADE PART OF INVESTMENT CREDIT.— 3 Section 46 of such Code is amended by striking ‘‘and’’ 4 at the end of paragraph (6), by striking the period at the 5 end of paragraph (7) and inserting ‘‘, and’’, and by adding 6 at the end the following new paragraph: 7 ‘‘(8) the recycling property investment credit.’’. 8 (c) C LERICAL AMENDMENT.—The table of sections 9 for subpart E of part IV of subchapter A of chapter 1 10 of such Code is amended by inserting after the item relat-11 ing to section 48E the following new item: 12 ‘‘48F. Recycling property investment credit.’’. (d) E FFECTIVE DATE.—The amendments made by 13 this section shall apply to— 14 (1) in the case of property described in section 15 48F(b)(2)(C)(i) of the Internal Revenue Code of 16 1986 (as added by subsection (a)), property which is 17 constructed, reconstructed, added, or erected after 18 December 31, 2025, and 19 (2) in any other case, property which is placed 20 in service after December 31, 2025. 21 Æ VerDate Sep 11 2014 22:28 Jul 25, 2025 Jkt 059200 PO 00000 Frm 00009 Fmt 6652 Sfmt 6301 E:\BILLS\H4466.IH H4466ssavage on LAPJG3WLY3PROD with BILLS