Sponsors
The bill channels dedicated funding and tax incentives to build a national lithium‑battery recycling system that can reduce fires and strengthen domestic recycling, but it shifts program costs onto producers/consumers, creates fiscal and implementation risks, and introduces compliance and competitiveness trade‑offs for businesses.
Workers, local and rural communities, and first responders will face fewer hazardous lithium‑battery fires and pollution because the bill funds programs and facilities that improve battery collection, detection, and safe recycling.
Taxpayers, state and local governments, and program participants gain a more reliable national battery recycling program because the bill dedicates IRC §4191 revenues and creates a Lithium Battery Buy-Back Trust Fund to finance recycling and buy-back incentives without annual appropriations.
Small recycling businesses and taxpayers purchasing certified battery‑detection equipment can lower upfront capital costs through a 30% tax credit, making it more affordable to deploy X‑ray/AI/RFID technologies that improve safety and sorting.
Consumers, purchasers, and utilities may face higher costs because IRC §4191 revenue and trust‑fund financing effectively shift program costs onto manufacturers, importers, or purchasers and those increases can be passed through to consumers.
Federal finances and other priorities could be strained because the 30% equipment tax credit reduces Treasury receipts and directing §4191 revenues to a dedicated trust lowers general receipts available for deficit reduction or other spending.
Small businesses, taxpayers, and federal buyers will face new compliance, administrative, and procurement constraints because adapting to new tax provisions, limited credit stacking, and procurement preferences can raise costs and reduce flexibility.
Based on analysis of 5 sections of legislative text.
Creates a 30% business tax credit for battery-detection devices, establishes a trust fund from specified tax receipts, and funds a DOE–EPA national lithium-battery recycling and buy-back grant program.
Introduced October 3, 2025 by Donald Norcross · Last progress October 3, 2025
Creates a federal tax credit to help recycling businesses buy battery-detection devices, sets up a dedicated trust fund fed by a specified tax, and uses that fund to pay for a national lithium-battery recycling and buy-back program run by the Department of Energy with EPA cooperation. The law also directs the DOE/EPA to list approved recycling facilities, award competitive grants to set up collection and incentive systems, and encourages federal buyers to prioritize approved facilities.