Recycling bill to establish tax credit

A bill introduced into the U.S. House of Representatives is targeting recycling infrastructure and manufacturing.

U.S. Reps. Tom Suozzi, (D-New York), and Brian Fitzpatrick, (R-Pennsylvania), introduced the Cultivating Investment in Recycling and Circular Local Economies (CIRCLE) Act, which would establish a 30% tax credit for investments in recycling infrastructure.

The national recycling goal set by the Environmental Protection Agency (EPA) is 50% by 2030. But the United States has a way to go to meet that goal, with recycling rates hovering around 45% for aluminum beverage cans, with overall recycling rates even lower – around 30%.

“Oftentimes, local governments bear the burden of operating waste management programs, having no choice but to pass those costs on to constituents in the form of taxes,” Suozzi said in a statement. “Making it easier and cheaper to recycle saves local governments and taxpayers in my district, and all over the country, up to $9.4 billion as less and less recyclable waste unnecessarily goes to costly landfills and incinerators.”

The CIRCLE Act establishes a 30% investment tax credit that would be phased out over the next 10 years. Local municipalities, investing in the reduction of waste from their own communities, would receive a direct rebate.

With tariffs on aluminum at 50%, the Midwest Premium has spiked, further incentivizing manufacturers to use as much scrap as they can.

The trade group Recycled Metals Association (ReMa) endorsed the bill.

“Manufacturers rely on recycled materials for a significant portion of their raw material needs, and the CIRCLE Act is a smart, targeted approach to strengthen and grow America’s recycling infrastructure to ensure the recycled materials industry can continue to support American manufacturing,” said ReMA President Robin Wiener.