HB4466, the CIRCLE Act, would amend the Internal Revenue Code to create a new federal tax credit for investment in recycling property. The credit would equal 30% of the qualified investment in eligible recycling property placed in service by a taxpayer, with an additional 10 percentage point bonus for projects meeting domestic content requirements. The bill defines eligible property broadly to include qualified recycling property used to process qualified reuse and recyclable materials, and it expressly expands the definition of recyclable materials to include video display devices and computer equipment and peripherals.
The credit would generally apply to new construction, reconstruction, additions, or acquisitions of qualifying recycling property beginning after December 31, 2025. It would phase down over time for projects with determination dates beginning in 2033 through 2037, eventually dropping to zero for projects beginning on or after January 1, 2037. The bill also bars double benefits by reducing basis and disallowing other credits or deductions to the extent of the recycling credit, and directs the Treasury Secretary to issue implementing regulations and guidance.
The bill’s stated purpose is to encourage investment in modern recycling infrastructure, increase domestic supply of recycled materials, and support domestic end markets. Its findings cite the EPA’s 50% recycling goal by 2030 and note that the U.S. recycling rate is around 30%, framing the tax credit as a tool to expand capacity and compete with foreign materials that may undercut domestic recycling markets. If enacted, it would add a new section 48F to the tax code and amend section 46 to treat the recycling property investment credit as part of the general investment credit framework.
Because there are no committee transcripts or recorded votes available, there is no documented debate or formal opposition in the provided materials. The bill appears to have a pro-recycling, pro-manufacturing orientation, with support implied by bipartisan sponsorship from Representatives Suozzi and Fitzpatrick. Any contention is likely to center on the cost and design of the tax credit, the domestic content bonus, the phase-out schedule, and the scope of what qualifies as recycling versus energy recovery or landfill-related uses, but those issues are not reflected in the available discussion record.
HB4466 would amend the Internal Revenue Code of 1986 by adding a new section 48F to create a recycling property investment credit and by conforming section 46 so the new credit is treated as part of the investment credit system. It would affect taxpayers investing in qualified recycling property, including facilities handling recyclable materials and certain electronics, and would require Treasury guidance on administration, recordkeeping, and reporting. The bill would apply prospectively to property constructed or placed in service after December 31, 2025, with a scheduled phaseout for later projects.
The available record suggests generally favorable sentiment toward the bill’s goals of expanding recycling infrastructure and domestic recycling capacity. The measure is framed as an economic and environmental incentive, and the bipartisan sponsorship indicates cross-party appeal. No votes or committee testimony are provided, so there is no documented opposition or amendment debate in the supplied materials.
No specific contention is documented in the provided transcripts or voting history because none are available. Based on the text, likely points of debate would include the fiscal cost of the credit, whether a 30% credit plus a domestic content bonus is too generous, how broadly recycling property should be defined, and whether the bill draws the line appropriately between recycling and other waste-management or energy-producing uses. The phase-out schedule and the exclusion of certain fuel, incineration, landfill, and energy uses may also be areas where stakeholders could disagree.