CIRCLE Act

The "Cultivating Investment in Recycling and Circular Local Economies Act of 2025," or the CIRCLE Act, seeks to significantly enhance the nation's recycling capabilities. Congress finds that the current recycling rate of approximately 30 percent falls short of the 50 percent national goal, necessitating investment in new and upgraded infrastructure to support domestic markets and counter competition from virgin materials. The Act establishes a new recycling property investment credit , offering an amount equal to 30 percent of the qualified investment for eligible property. This eligible property includes depreciable assets that are qualified recycling property, constructed or acquired by the taxpayer for original use. To further encourage domestic production, an additional 10 percentage point domestic content bonus credit is available for investments meeting specific requirements. The credit is subject to a phase-out schedule , providing 100 percent of the credit for eligible property with a determination date before December 31, 2032. The credit amount then gradually decreases, reaching 0 percent for property with a determination date on or after January 1, 2037. The bill also defines "qualified recycling property" and specifies what processes do not qualify as "recycle," such as using waste as fuel or for landfill cover. This credit applies to property constructed or placed in service after December 31, 2025, and includes provisions to prevent double benefits.