Recycling property investment credit

(a)

In general

Subpart E of part IV of subchapter A of chapter 1 of the Internal Revenue Code of 1986 is amended by inserting after section 48E the following new section:

48F.

Recycling property investment credit

(a)

In general

For purposes of section 46, the recycling property investment credit for any taxable year is an amount equal to 30 percent of the qualified investment for such taxable year.(b)

Qualified investment

(1)

In general

For purposes of subsection (a), the qualified investment for any taxable year is the basis of any eligible property placed in service by the taxpayer during such taxable year.(2)

Eligible property

For purposes of this section, the term eligible property means property—(A)which is qualified recycling property,(B)with respect to which depreciation (or amortization in lieu of depreciation) is allowable, and(C)(i)the construction, reconstruction, addition, or erection of which is completed by the taxpayer, or(ii)which is acquired by the taxpayer if the original use of such property commences with the taxpayer.(c)

Special rules

For purposes of this section—(1)

Certain progress expenditure rules made applicable

Rules similar to the rules of subsections (c)(4) and (d) of section 46 (as in effect on the day before the date of the enactment of the Revenue Reconciliation Act of 1990) shall apply.(2)

Special rule for certain subsidized property

Rules similar to section 45(b)(3) shall apply.(3)

Domestic content bonus credit amount

(A)

In general

In the case of any qualified investment which satisfies the requirement under subparagraph (B), the amount of the credit determined under subsection (a) (determined without regard to this paragraph before the application of subsection (d) and after the application of any other provision of this section) shall be increased by an amount equal to 10 percentage points of the amount so determined.(B)

Requirement

Rules similar to the rules of section 45(b)(9)(B) shall apply.(4)

Phaseout for elective payment

In the case of a taxpayer making an election under section 6417 with respect to a credit under this section, rules similar to the rules of section 45(b)(10) shall apply.(d)

Credit phase-Out

(1)

In general

The amount of the credit determined under subsection (a) with respect to any qualified investment shall be equal to the product of—(A)the amount of the credit determined under subsection (a) without regard to this subsection, multiplied by(B)the phase-out percentage under paragraph (2).(2)

Phase-out percentage

The phase-out percentage under this paragraph is equal to—(A)in the case of any eligible property with a determination date beginning on or after January 1, 2026, and before December 31, 2032, 100 percent,(B)in the case of any eligible property with a determination date beginning on or after January 1, 2033, and before December 31, 2033, 80 percent,(C)in the case of any eligible property with a determination date beginning on or after January 1, 2034, and before December 31, 2034, 60 percent,(D)in the case of any eligible property with a determination date beginning on or after January 1, 2035, and before December 31, 2035, 40 percent,(E)in the case of any eligible property with a determination date beginning on or after January 1, 2036, and before December 31, 2036, 20 percent, and(F)in the case of any eligible property with a determination date beginning on or after January 1, 2037, 0 percent.(3)

Determination date

For purposes of paragraph (2), the determination date of an eligible property is—(A)in the case such property is described in subsection (b)(2)(C)(i), the date on which the construction, reconstruction, addition, or erection of such property begins, and(B)in any other case, the date on which such property is placed in service.(e)

Denial of double benefit

In the case of any eligible property with respect to which credit is allowed under subsection (a)—(1)no other credit or deduction shall be allowed for, or by reason of, such property to the extent of the amount of such credit, and(2)the basis of such property shall be reduced by the amount of such credit.(f)

Regulations and guidance

The Secretary shall issue such regulations or other guidance as the Secretary determines necessary to carry out the purposes of this section, including regulations or other guidance which provides for requirements for recordkeeping or information reporting for purposes of administering the requirements of this section.(g)

Definitions

For purposes of this section—(1)

Qualified recycling property

The term qualified recycling property has the meaning given the term reuse and recycling property in section 168(m)(3)(A).(2)

Qualified reuse and recyclable materials

The term qualified reuse and recyclable materials has the meaning given such term in section 168(m)(3)(B), except that for purposes of this section such term includes any video display device and any computer device (including computer peripherals, such as keyboards, mice, speakers, cables, printers, and scanners).(3)

Recycle

The term recycle has the meaning given such term in section 168(m)(3)(C), except that for purposes of this section such term does not include—(A)any method of sorting, processing, and aggregating materials from solid waste that—(i)does not preserve the original quality of such materials, and(ii)results in the aggregated material not being usable—(I)for the initial purpose (or a substantially similar purpose) of such materials, or(II)as feedstock in lieu of virgin feedstock in the production of specification grade commodities, or(B)the primary use of waste or qualified reuse and recyclable materials—(i)as a fuel or fuel substitute;(ii)for the production or generation of energy (including heat and electricity);(iii)for incineration;(iv)for alternate operating cover; or(v)within the footprint of a landfill.

(b)

Credit made part of investment credit

Section 46 of such Code is amended by striking and at the end of paragraph (6), by striking the period at the end of paragraph (7) and inserting , and, and by adding at the end the following new paragraph:

(8)the recycling property investment credit.

(c)

Clerical amendment

The table of sections for subpart E of part IV of subchapter A of chapter 1 of such Code is amended by inserting after the item relating to section 48E the following new item:

48F. Recycling property investment credit.

(d)

Effective date

The amendments made by this section shall apply to—(1)in the case of property described in section 48F(b)(2)(C)(i) of the Internal Revenue Code of 1986 (as added by subsection (a)), property which is constructed, reconstructed, added, or erected after December 31, 2025, and(2)in any other case, property which is placed in service after December 31, 2025.