“To amend the Internal Revenue Code of 1986 to establish a recycling property investment credit, and for other purposes.”
No CRS summary available for this bill.
This section declares congressional findings that include (1) the Environmental Protection Agency's national recycling goal of 50% by 2030, (2) the U.S. recycling rate of approximately 30%, and (3) the benefits of a tax credit for investments in existing and new recycling infrastructure to promote recycling, modernize operations, increase supply of domestic recycled materials, support responsible end markets, counter international competition from dumped virgin or non-verifiably recycled materials, and fully develop U.S. recycling capacities.
This section establishes a new investment tax credit under IRC §48F (Recycling Property Investment Credit) equal to 30% of the basis of eligible property placed in service, which includes depreciable qualified recycling property (i.e., reuse and recycling property under IRC §168(m)(3)(A)) that is either constructed by the taxpayer or new to the taxpayer. Qualified recycling property processes qualified reuse and recyclable materials (expanded here to include video display devices and computer devices) through recycling (excluding low-quality processing, energy production, incineration, or landfill use). (1) The credit increases by 10 percentage points for domestic content; (2) it phases out based on the property's determination date (construction start date or placed-in-service date), from 100% for dates before 2033 to 0% for dates in 2037 or later; (3) elective payment under §6417 triggers a phaseout similar to §45(b)(10); and (4) it denies double benefits by reducing basis and disallowing other credits or deductions. The provision also applies certain progress expenditure and subsidized property rules and authorizes regulations.