08/08/2025

Industry, Recycling Groups Back Bipartisan Recycling Bill

Plastics News | Sarah Kominek | July 18, 2025

Industry, recycling groups back bipartisan recycling bill

Two U.S. representatives introduced bipartisan recycling legislation in Congress July 17, supported by environmental and industry groups, that includes tax credits for private companies to buy recycling equipment to "accelerate the nation's recycling system."

The Cultivating Investment in Recycling and Circular Local Economies Act would establish a targeted 30 percent investment tax credit intended to improve U.S. recycling infrastructure through domestic manufacturing, according to the nonprofit Recycling Partnership.

The tax credit would be phased out over the next 10 years and local municipalities that invest in reducing waste would receive a direct rebate, it said.

"We can't talk about building a 21st-century economy without investing in 21st-century recycling infrastructure," said Rep. Brian Fitzpatrick, R-Pa. "The bipartisan CIRCLE Act tackles this head-on — providing a new investment credit to help communities like ours in PA-1 modernize outdated systems, strengthen domestic supply chains and compete globally."

"It's a fiscally smart, environmentally responsible solution, and part of my broader effort to grow our local economies and protect our environment, our workforce and the future we owe our next generation," Fitzpatrick added.

"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," Rep. Tom Suozzi, D-N.Y, said. "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. … Bringing down the cost of living by reducing waste, all the while creating jobs in the recycling industry, is a no brainer."

"This legislation recognizes what those of us in the recycling industry already know: investing in recycling infrastructure is good for the environment and the economy," said Steve Alexander, president and CEO of the Association of Plastic Recyclers. "A federal tax credit will unlock private capital, strengthen domestic supply chains and support American manufacturing."

"We urge Congress to act quickly and pass the CIRCLE Act without delay to ensure that valuable recyclable materials are kept in the U.S. economy and out of landfills," Alexander added.

"Millions of pounds of recyclable material are landfilled or incinerated every year just because of system inefficiencies and insufficient infrastructure," Suozzi said. "An investment in recycling is a dual investment in the environment and in American infrastructure. Increasing recycling capacity reduces waste in our communities, returns materials to the economy, and helps keep plastic … and other materials off local streets and beaches."

Encouraging investment

U.S. residential recycling systems are "underperforming, resulting in the loss of over 37 million tons of household recyclables," the Recycling Partnership said on its website. "In most states, local governments and taxpayers bear the operational and financial responsibility for recycling and disposal of packaging."

According to the Partnership's 2024 State of Recycling Report, 21 percent of recyclable material is captured in the recycling system and 76 percent of recyclables are lost at the household level, "underscoring the importance of providing all households with recycling services and engaging people with good communication about how to recycle locally," it said.

"Voluntary investments, particularly those through public-private partnerships, have been critical to advancing recycling," it added. "The U.S. recycling system creates local jobs and supports robust supply chains for domestic manufacturing. But its full potential remains untapped."

"Private investment alone won't deliver the recycling infrastructure we need," it said, adding that the CIRCLE Act's Recycling Infrastructure Investment Tax Credit "can transform our domestic manufacturing landscape and produce thousands of new jobs across the country."

"Building a circular materials economy requires modern, technologically advanced recycling infrastructure," said Wes Carter, president of Atlantic Packaging Corp. "While demand for recycled materials is growing rapidly, supply remains constrained — primarily due to outdated systems and the absence of consistent national standards. The CIRCLE Act will catalyze the investment needed to close this gap."

"As a leading manufacturer that relies on recycled plastics, we recognize the vital importance of policies that advance sustainable infrastructure and long-term economic growth," said Scott Barbour, president & CEO of plastic pipe maker and recycler Advanced Drainage Systems Inc. "By strengthening our nation's circular economy, this legislation helps ensure a reliable domestic supply of recycled materials, which in turn bolsters American manufacturing and strengthens the U.S. economy."

"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 Robin Wiener, president of the Recycled Materials Association.

"By incentivizing domestic infrastructure investment, this legislation will help accelerate innovation, advance the circular economy and drive job creation here in the U.S," Monique Oxender, chief of corporate affairs and sustainability officer at Keurig Dr Pepper, said.

"An investment in local recycling systems and improving the collection infrastructure ensures valuable materials like PET — the most recycled plastic in the U.S., and infinitely recyclable, are recovered and reused," said Ralph Vasami, executive director of PET Resin Association.

"The Plastics Pipe Institute supports the CIRCLE Act because it strengthens recycling standards, boosts demand for recycled materials, and encourages innovation across our industry," said David Fink, president of Plastics Pipe Institute. "This bill helps ensure plastic piping remains a sustainable, reliable solution for modern infrastructure."