CIRCLE Act

This bill amends the Internal Revenue Code to create a tax credit for investment in recycling property, called the recycling property investment credit.

Sec. 3, Recycling property investment credit: The bill adds a new section 48F to the tax code. For any taxable year, the credit equals 30% of the qualified investment. Qualified investment is the basis of eligible property placed in service that year. Eligible property must be qualified recycling property, be depreciable, and be newly constructed or originally used by the taxpayer. Special rules apply for progress expenditures, subsidized property, a domestic content bonus that increases the credit by 10 percentage points, and a phaseout for elective payment. The credit phases out: 100% for property with a determination date from January 1, 2026 through December 31, 2032; 80% in 2033; 60% in 2034; 40% in 2035; 20% in 2036; and 0% from 2037 onward. No double benefit is allowed, no other credit or deduction for the same property, and basis is reduced by the credit amount. The Treasury Secretary may issue regulations. Qualified recycling property is defined by cross-reference to existing law, and qualified reuse and recyclable materials include video display devices and computer devices. The term 'recycle' excludes methods that do not preserve original quality or that use waste as fuel, for energy, incineration, landfill cover, or within a landfill footprint. The credit is added to the investment credit list. The amendments apply to property constructed or placed in service after December 31, 2025.