CIRCLE Act

The CIRCLE Act would establish a new tax credit to encourage private investment in recycling infrastructure. Under the proposal, businesses that invest in qualified recycling property would be eligible to claim a tax credit equal to 30% of their investment in eligible recycling equipment and facilities placed in service during a taxable year. The credit would apply to both new and upgraded recycling operations.

The bill aims to address the current underperformance of the U.S. recycling system, which currently recycles about 30% of waste, and support the Environmental Protection Agency's goal of reaching 50% recycling by 2030. Proponents argue the tax credit would modernize recycling infrastructure, create jobs in recycling and related industries, reduce pressure on landfills, and strengthen domestic supply chains by increasing the availability of domestically recycled materials. The bill would take effect for recycling property placed in service after December 31, 2025.

The legislation is currently under consideration by the House Committee on Ways and Means and has not yet been voted on by the full chamber.