Strengthen America’s Economy with the CIRCLE Act

Our current residential recycling system is underperforming, resulting in the loss of over 37 million tons of household recyclables. In most states, local governments and taxpayers bear the operational and financial responsibility for recycling and disposal of packaging, and voluntary investments, particularly those through public-private partnerships, have been critical to advancing recycling. Investing in and accelerating the nation’s recycling system through the Cultivating Investment in Recycling and Circular Local Economies, or CIRCLE Act, is a critical step in bolstering our economy.

The U.S. recycling system creates local jobs and supports robust supply chains for domestic manufacturing. But its full potential remains untapped, and private investment alone won’t deliver the recycling infrastructure we need. The CIRCLE Act’s Recycling Infrastructure Investment Tax Credit can transform our domestic manufacturing landscape and produce thousands of new jobs across the country.

The credit would reduce a private entity’s tax liability when making qualified investments in infrastructure to recycle paper, metals, glass, aluminum, and other materials. These investments could include machinery, operational equipment, or software. Public entities (municipalities) would be eligible for a rebate equal to the credit. 

Benefits of the Recycling Infrastructure Investment Tax Credit

• Strengthen Domestic Supply Chains: Estimated to return $8.8 billion in valuable materials that can be used throughout the U.S. economy, including in new packaging and products. Better recycling will reduce the need to import materials, ensuring we have the resources to grow our economy without relying on foreign nations.
• Create American Jobs: Investments in recycling are investments in domestic jobs. A fully developed residential recycling system could return over $11 billion in new wages and 200,000 jobs across the nation, including haulers, truck drivers, machine operators, engineers, and more.
• Advance American Manufacturing: Across all materials, recycled commodities account for 40% of manufacturing inputs. With additional sorting and processing capacity, including advancements in AI, machinery, and emerging technologies, recycled materials can account for a larger share of manufacturing inputs and be applied to a larger set of applications.
• Reduce the Burden on Local Governments: Local governments often bear the cost of operating waste management programs and pass those costs on to taxpayers. By making it easier and more cost-effective to recycle, local governments and taxpayers could see $9.4 billion in savings as fewer materials are sent to landfills or incinerators.
• Support Rural and Urban Communities: As infrastructure expands, more communities—and especially rural communities—will gain access to recycling services. Services that were previously inaccessible, often due to their distance from transfer stations or material recovery facilities. Incentivizing investment will expand the needed infrastructure and make recycling services more accessible to all communities across the nation.

What’s Next?

As Congress considers changes to the tax code in 2025, a Recycling Infrastructure Investment Tax Credit, as part of the CIRCLE Act, could transform the American recycling economy, build local jobs, and reduce our reliance on imported materials. The following companies and organizations are supporting this Credit.