Sponsor
Donald Norcross
Representative · D-NJ
Representative · D-NJ
The bill secures dedicated funding and incentives to expand safe lithium-battery recycling and domestic supply chains—improving public safety and industry support—while shifting costs onto taxpayers, producers, or consumers and creating fiscal, market access, and oversight risks.
Taxpayers and administrators: the bill dedicates IRC §4191 revenue and creates a Lithium Battery Buy-Back Trust Fund to provide stable, standing funding for a national battery recycling program without needing annual appropriations.
Communities and first responders: a funded national recycling program and approved recycling facilities reduce hazardous waste and fire risks from end-of-life lithium batteries, improving local public safety and environmental outcomes.
Consumers: the bill creates buy-back incentives for turning in used lithium batteries, lowering disposal costs for individuals and encouraging safe recycling behavior.
All taxpayers: the combination of a generous 30% equipment credit and dedicated trust funding reduces general Treasury receipts and could increase deficits or require offsets elsewhere.
Consumers and product purchasers: funding the program through IRC §4191 or trust capitalization may raise costs for manufacturers, importers, or purchasers that are passed on to consumers and utilities.
Taxpayers and governments: directing tax revenue to a dedicated trust reduces flexible Treasury funds and—if the program is poorly implemented—could result in ineffective spending with less annual congressional oversight.
Based on analysis of 5 sections of legislative text.
Creates a 30% tax credit for battery-detection equipment, funds a trust from specified battery tax receipts, and establishes a DOE–EPA National Battery Recycling Program to fund approved recycler buy-back systems.
Official title: To amend the Internal Revenue Code of 1986 to allow a credit against tax for expenses relating to the purchase of battery detectors, and for other purposes.
Introduced October 3, 2025 by Donald Norcross · Last progress October 3, 2025
Creates a 30% business tax credit for businesses that install battery-detection devices used in battery recycling operations, establishes a Treasury trust fund fed by certain battery-related tax receipts, and uses that fund to finance a National Battery Recycling Program. The program — to be created by DOE and EPA rulemaking within five years — will identify approved lithium-battery recyclers, award competitive grants to set up collection and buy-back systems, and direct federal purchasers to prioritize approved facilities.