Sponsors (6)
The bill trades a substantial federal tax‑based investment in domestic recycling capacity and e‑waste handling—supporting jobs, supply chains, and local environmental quality—against federal revenue costs, distributional gaps for entities without tax liability, and limits/complexities in tax treatment that could reduce long‑term or equitable benefits.
Recyclers, small manufacturers, and local governments receive large federal investment incentives (a refundable 30% credit plus a possible 10-point domestic-content bonus) that materially lower upfront costs for new or upgraded recycling facilities and equipment.
Local governments and recycling firms gain stronger incentives and multi-year certainty (phase-in 2026–2032) to build or modernize recycling infrastructure, increasing domestic recycling capacity and improving access to recycling services.
Communities and recyclers benefit from expanded eligible materials (explicitly including video displays and computer devices), which encourages responsible e‑waste recycling and can reduce electronic waste sent to landfills or overseas dumping.
All taxpayers face reduced federal revenue because of the new tax credits, which could increase deficits or require cuts or offsets elsewhere in federal spending.
Smaller municipalities, nonprofits, and very small firms that lack taxable income may not fully benefit from nonrefundable tax credits unless transferability or direct-grant options are available, leaving underserved communities and operators behind.
Tax rules tied to the credit (reducing tax basis, and disallowing other credits/deductions for the same property) can raise future taxable income, limit stacking of incentives, complicate project financing, and reduce net long‑term tax benefits for claimants.
Based on analysis of 3 sections of legislative text.
Creates a 30% investment tax credit for qualified recycling property placed in service after Dec 31, 2025, with a domestic-content bonus and phasedown through 2036.
Official title: To amend the Internal Revenue Code of 1986 to establish a recycling property investment credit, and for other purposes.
Introduced July 16, 2025 by Thomas Suozzi · Last progress July 16, 2025
Creates a 30% investment tax credit for qualified recycling infrastructure to encourage building and upgrading U.S. recycling and reuse facilities. The credit applies to depreciable recycling property first used by the taxpayer or constructed by the taxpayer and includes a domestic-content bonus, recordkeeping and reporting requirements, and a phasedown of credit availability from 2026 through 2036.