CIRCLE Act | ChamberLight

IN COMMITTEE· 119TH CONGRESS

House BillHR 4466Taxation

CIRCLE Act

INTRO JUL 16· LAST ACTION JUL 16

READING

7MIN

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Became Law

WHAT THE BILL DOES

AI-written

Voters should care about this bill because it directly addresses America's low recycling rate and aims to create a stronger domestic market for recycled materials. If passed, it could lead to more efficient and widespread recycling programs, potentially reducing the amount of waste sent to landfills and lessening our reliance on new raw materials, which has environmental benefits. It also aims to strengthen the U.S. economy by supporting new investments in infrastructure and manufacturing jobs within the recycling sector.

Without this bill, the current recycling rate of around 30% is likely to continue or improve only slowly, making it harder to reach national environmental goals. It would also mean that businesses investing in recycling infrastructure might not receive a direct financial incentive from the federal government, potentially slowing down modernization and expansion efforts needed to compete with international markets and meet growing demand for recycled content.

KEY PROVISIONS

4AI-extracted

PROVISION 01

Establishes a 30% investment tax credit for qualified recycling property placed in service by a taxpayer.

This directly incentivizes businesses to invest in new or upgraded recycling facilities and equipment, aiming to boost the national recycling rate.

PROVISION 02

Provides an additional 10 percentage point bonus credit for investments that meet domestic content requirements.

This encourages the use of American-made components and equipment in recycling infrastructure, supporting domestic manufacturing and job creation.

PROVISION 03

Defines "qualified recycling property" and specifies that certain activities like using waste as fuel or for incineration, if they don't preserve material quality for reuse, are not considered "recycle" for the credit.

This clarifies what types of investments qualify for the tax credit, focusing incentives on higher-value recycling methods rather than waste-to-energy processes.

PROVISION 04

Includes a phase-out schedule where the credit amount gradually decreases starting in 2033 and fully expires by 2037.

This sets a clear timeframe for the incentive, providing a temporary boost to the recycling industry rather than a permanent subsidy.

SPONSORSHIP

1 + 5

COSPONSOR BREAKDOWNBIPARTISAN · 80%

DEM 2 REP 3 IND 0

ACTION TIMELINE

2 EVENTS

JUL 16

Introduced in House

INTROREFERRAL

JUL 16

Referred to the House Committee on Ways and Means.

HOUSE · INTROREFERRAL

BILL INFO

TypeHouse Bill

NumberHR 4466

Congress119th

StatusIn Committee

IntroducedJul 16, 2025

Last actionJul 16, 2025

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IN COMMITTEE· 119TH CONGRESS · WAYS AND MEANS COMMITTEE · INTRODUCED JUL 16, 2025

House BillHR 4466Taxation

CIRCLE Act

INTRODUCED JUL 16, 2025· LAST ACTION JUL 16, 2025

PASSAGE CHANCES

—%

READING

7 min

COSPONSORS

COMPLEXITY

Moderate

Call my reps Congress.gov

LEGISLATIVE PROGRESS

STEP 2 OF 8

Introduced

In Committee

Reported

Passed House

Passed Senate

Conference

To President

Became Law

Introduced
In Committee
Reported
Passed House
Passed Senate
Conference
To President
Became Law

WHAT THE BILL DOES

AI-written

KEY PROVISIONS

AI-extracted

high

Establishes a 30% investment tax credit for qualified recycling property placed in service by a taxpayer.

This directly incentivizes businesses to invest in new or upgraded recycling facilities and equipment, aiming to boost the national recycling rate.

med

Provides an additional 10 percentage point bonus credit for investments that meet domestic content requirements.

This encourages the use of American-made components and equipment in recycling infrastructure, supporting domestic manufacturing and job creation.

high

This clarifies what types of investments qualify for the tax credit, focusing incentives on higher-value recycling methods rather than waste-to-energy processes.

med

Includes a phase-out schedule where the credit amount gradually decreases starting in 2033 and fully expires by 2037.

This sets a clear timeframe for the incentive, providing a temporary boost to the recycling industry rather than a permanent subsidy.

DEADLINES & DATES

AI-extracted

An AI model extracted this from the bill’s official record and can make mistakes. Check the official text ↗ (opens in new tab)

December 31, 2032

Full 100% credit for eligible property with a determination date (start of construction or placed in service) beginning on or after January 1, 2026, and before December 31, 2032.

January 1, 2033

Credit reduces to 80% for eligible property with a determination date beginning on or after January 1, 2033, and before December 31, 2033.

January 1, 2034

Credit reduces to 60% for eligible property with a determination date beginning on or after January 1, 2034, and before December 31, 2034.

January 1, 2035

Credit reduces to 40% for eligible property with a determination date beginning on or after January 1, 2035, and before December 31, 2035.

January 1, 2036

Credit reduces to 20% for eligible property with a determination date beginning on or after January 1, 2036, and before December 31, 2036.

January 1, 2037

Credit reduces to 0% for eligible property with a determination date beginning on or after January 1, 2037.

GLOSSARY

AI-written

Internal Revenue Code of 1986: The main body of federal tax law in the United States.
Investment Credit: A reduction in a business's tax liability, calculated as a percentage of the amount invested in certain types of property, like new equipment or facilities.
Depreciation: A tax deduction that allows businesses to recover the cost of certain property over its useful life, reducing taxable income.
Basis: For tax purposes, the original cost of an asset, adjusted for various factors, used to calculate depreciation, amortization, or gain/loss on sale.
Domestic Content: Refers to the percentage of components or materials in a product that are sourced or manufactured within the United States.
Phase-Out: A gradual reduction or elimination of a tax benefit or program over a period of time.
Qualified Recycling Property: Equipment or facilities specifically defined by the bill as eligible for the tax credit, used in the process of recycling materials.

ACTION TIMELINE

2 EVENTS

JUL 16, 25

Introduced in House

INTROREFERRAL

JUL 16, 25

Referred to the House Committee on Ways and Means.

INTROREFERRAL

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CIRCLE Act

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CIRCLE Act

LEGISLATIVE PROGRESS

WHAT THE BILL DOES

KEY PROVISIONS

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