This bill creates a new federal tax credit called the recycling property investment credit. The credit equals 30% of the taxpayer’s qualified investment in eligible recycling or reuse property. A 10 percentage-point domestic content bonus increases the credit if certain domestic sourcing rules are met. The credit is added to the existing investment credit rules and includes special progress-expenditure and subsidized-property rules. The bill defines eligible property by referring to existing tax-code recycling and reuse definitions, and it explicitly includes video display devices and computer devices in the list of recyclable materials. The credit cannot be used together with other credits or deductions for the same amount, and the basis of the property is reduced by the credit amount. The credit is subject to a scheduled phaseout: full credit for properties with earlier determination dates through 2032, then reduced percentages for 2033–2036, and zero for properties with determination dates beginning on or after January 1, 2037. The Secretary of the Treasury must issue regulations and guidance. The rules generally apply to property constructed or placed in service after December 31, 2025.
If you invest in qualifying recycling or reuse equipment or facilities, you may be able to claim a tax credit equal to 30% of the investment. You could receive an extra 10 percentage points if your investment meets the bill’s domestic content requirements. The credit applies to property placed in service after December 31, 2025, and the credit phases down starting in 2033. If you claim this credit, you cannot also claim other credits or deductions for the same dollar amount, and you must reduce the property’s tax basis by the credit amount. The Treasury will publish rules and recordkeeping requirements.
No publicly available information on cost estimates, budgetary effects, or offsets appears in the bill text provided.
The bill’s findings state that a recycling investment credit would modernize and expand recycling infrastructure, increase the supply of domestically recycled materials, support end markets for recycled content, and help the United States develop stronger domestic recycling capacity amid international competition.
No publicly available information on opponents’ views or formal objections appears in the bill text provided.