I 
118TH CONGRESS 
1ST SESSION H. R. 5564 
To amend the Internal Revenue Code of 1986 to establish an excise tax 
on plastics. 
IN THE HOUSE OF REPRESENTATIVES 
SEPTEMBER 19, 2023 
Mr. DOGGETT (for himself, Mr. BLUMENAUER, Ms. BONAMICI, Ms. CHU, Ms. 
CLARKE of New York, Mr. CLEAVER, Mr. COHEN, Mr. ESPAILLAT, Mr. 
GOMEZ, Ms. JACKSON LEE, Ms. JAYAPAL, Mr. JOHNSON of Georgia, Mr. 
KRISHNAMOORTHI, Mr. LARSON of Connecticut, Ms. LEE of California, 
Mr. LIEU, Mr. NADLER, Ms. NORTON, Mr. PAYNE, Ms. PINGREE, Mr. 
QUIGLEY, Mr. RASKIN, Ms. SA´NCHEZ, Mr. SCHIFF, Mrs. WATSON COLE-
MAN, and Ms. WILSON of Florida) introduced the following bill; which 
was referred to the Committee on Ways and Means, and in addition to 
the Committees on Energy and Commerce, Natural Resources, and 
Transportation and Infrastructure, for a period to be subsequently deter-
mined by the Speaker, in each case for consideration of such provisions 
as fall within the jurisdiction of the committee concerned 
A BILL 
To amend the Internal Revenue Code of 1986 to establish 
an excise tax on plastics. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
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SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Rewarding Efforts to 
Decrease Unrecycled Contaminants in Ecosystems Act of 
2023’’ or the ‘‘REDUCE Act of 2023’’. 
SEC. 2. EXCISE TAX ON PLASTICS. 
(a) IN GENERAL.—Chapter 38 of the Internal Rev-
enue Code of 1986 is amended by adding at the end there-
of the following new subchapter: 
‘‘Subchapter E—Tax on Plastics 
‘‘Sec. 4691. Imposition of tax. 
‘‘Sec. 4692. Definitions and special rules. 
‘‘SEC. 4691. IMPOSITION OF TAX. 
‘‘(a) GENERAL RULE.—There is hereby imposed— 
‘‘(1) a tax on— 
‘‘(A) the entry into the United States of 
any taxable virgin plastic resin for consumption, 
use, or warehousing, and 
‘‘(B) the sale of any taxable virgin plastic 
resin sold by an applicable entity unless there 
was a prior taxable entry of such resin under 
subparagraph (A), and 
‘‘(2) a tax on the entry into the United States 
of any imported covered item. 
‘‘(b) AMOUNT OF TAX.— 
‘‘(1) TAXABLE VIRGIN PLASTIC RESIN.— 
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‘‘(A) IN
GENERAL.—The amount of the 
tax imposed under subsection (a)(1) shall be de-
termined in accordance with the following table: 
‘‘For any entry or sale during calendar year: 
The tax is the fol-
lowing amount per 
pound of taxable 
virgin plastic 
resin: 
2024 ......................................................................................
10 cents
2025 ......................................................................................
15 cents
2026 ......................................................................................
20 cents
2027 or thereafter ................................................................
Adjusted amount. 
‘‘(B) ADJUSTED AMOUNT.— 
‘‘(i) IN
GENERAL.—For purposes of 
subparagraph (A), the adjusted amount for 
any entry or sale during any calendar year 
beginning after December 31, 2026, shall 
be equal to the sum of— 
‘‘(I) 20 cents, plus 
‘‘(II) an amount equal to— 
‘‘(aa) 20 cents, multiplied by 
‘‘(bb) the cost-of-living ad-
justment determined under sec-
tion 1(f)(3) for the calendar year, 
determined by substituting ‘cal-
endar year 2025’ for ‘calendar 
year 
2016’ 
in 
subparagraph 
(A)(ii) thereof. 
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‘‘(ii) ROUNDING.—If any amount de-
termined under clause (i) is not a multiple 
of 1 cent, such amount shall be rounded to 
the nearest multiple of 1 cent. 
‘‘(2) IMPORTED COVERED ITEMS.— 
‘‘(A) IN GENERAL.—Except as provided in 
subparagraph (B), the amount of the tax im-
posed under paragraph (2) of subsection (a) on 
any imported covered item shall be an amount 
equal the product of— 
‘‘(i) the weight of such covered item 
(expressed in pounds), multiplied by 
‘‘(ii) 20 cents. 
‘‘(B) AUTHORITY
TO
PRESCRIBE
ALTER-
NATE
RATE.—With respect to any imported 
covered item for which the importer dem-
onstrates to the satisfaction of the Secretary 
that such item is not entirely comprised of tax-
able virgin plastic resin, the Secretary may pre-
scribe, in lieu of the rate of tax specified under 
subparagraph (A), an alternative rate of tax 
with respect to such item for purposes of sub-
section (a)(2). 
‘‘(c) APPLICABLE ENTITY.— 
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‘‘(1) IN GENERAL.—For purposes of this sec-
tion, the term ‘applicable entity’ means any manu-
facturer, producer, or importer of taxable virgin 
plastic resin. 
‘‘(2) EXEMPTION.— 
‘‘(A) IN GENERAL.—The term ‘applicable 
entity’ shall not include any manufacturer, pro-
ducer, or importer of taxable virgin plastic resin 
which, with respect to any taxable year— 
‘‘(i)(I) in the case of a manufacturer 
or producer, for the taxable year preceding 
such taxable year, manufactured or pro-
duced not greater than 10 tons of taxable 
virgin plastic resin, or 
‘‘(II) in the case of an importer, for 
the taxable year preceding such taxable 
year, imported not greater than 10 tons of 
taxable virgin plastic resin, and 
‘‘(ii) meets the gross receipts test of 
section 448(c) for such taxable year. 
‘‘(B) AGGREGATION RULE.—For purposes 
of this paragraph, all persons treated as a sin-
gle employer under subsection (a) or (b) of sec-
tion 52 or subsection (m) or (o) of section 414 
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shall be treated as a single manufacturer, pro-
ducer, or importer. 
‘‘(C) 
ADMINISTRATION.—The 
Secretary 
shall prescribe such regulations or other guid-
ance as may be necessary to administer this 
paragraph, and may require information report-
ing from any manufacturer, producer, or im-
porter seeking application of subparagraph (A). 
‘‘(d) EXPORTATION.— 
‘‘(1) IN GENERAL.—No tax shall be imposed 
under this section upon the sale of any taxable vir-
gin plastic resin or imported covered item for export, 
and in due course so exported. 
‘‘(2) CREDIT OR REFUND WHERE TAX PAID.— 
‘‘(A) IN GENERAL.—Except as provided in 
subparagraph (B), if— 
‘‘(i) tax under subsection (a) was paid 
with respect to any taxable virgin plastic 
resin or any imported covered item, and 
‘‘(ii) such resin or item was exported 
by any person, 
credit or refund (without interest) of such tax 
shall be allowed or made to the person who paid 
such tax. 
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