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. 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 Representa-
tives 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 Envi-
ronmental Protection Agency is 50 percent by 2030. 
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(2) America’s recycling rate hovers around 30 
percent. 
(3) The establishment of a tax credit for invest-
ment 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 signifi-
cant demand for domestically sourced recycled mate-
rial. 
(5) Domestic markets face increased competi-
tion 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 sub-
chapter A of chapter 1 of the Internal Revenue Code of 
1986 is amended by inserting after section 48E the fol-
lowing new section: 
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‘‘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 invest-
ment 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 prop-
erty— 
‘‘(A) which is qualified recycling property, 
‘‘(B) with respect to which depreciation (or 
amortization in lieu of depreciation) is allow-
able, 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 sec-
tion— 
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‘‘(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 require-
ment under subparagraph (B), the amount of 
the credit determined under subsection (a) (de-
termined without regard to this paragraph be-
fore 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 deter-
mined. 
‘‘(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 sec-
tion 6417 with respect to a credit under this section, 
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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 sub-
section, multiplied by 
‘‘(B) the phase-out percentage under para-
graph (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 
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‘‘(1) no other credit or deduction shall be al-
lowed for, or by reason of, such property to the ex-
tent 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 Sec-
retary determines necessary to carry out the purposes of 
this section, including regulations or other guidance which 
provides for requirements for recordkeeping or informa-
tion reporting for purposes of administering the require-
ments 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 sec-
tion 168(m)(3)(A). 
‘‘(2) QUALIFIED REUSE AND RECYCLABLE MA-
TERIALS.—The term ‘qualified reuse and recyclable 
materials’ has the meaning given such term in sec-
tion 168(m)(3)(B), except that for purposes of this 
section such term includes any video display device 
and any computer device (including computer pe-
ripherals, such as keyboards, mice, speakers, cables, 
printers, and scanners). 
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‘‘(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 mate-
rial not being usable— 
‘‘(I) for the initial purpose (or a 
substantially similar purpose) of such 
materials, or 
‘‘(II) as feedstock in lieu of vir-
gin 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 
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‘‘(v) within the footprint of a land-
fill.’’. 
(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 relat-
ing 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. 
Æ 
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