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119-hr-5686119th CongressWALLET

Battery Fire Prevention Act

Sponsored By: Representative Norcross, Donald [D-NJ-1]

Introduced

Summary

Create a national program to pay for and expand lithium battery recycling. This bill would fund a National Battery Recycling Program through a new 5 percent battery sales tax, a dedicated Lithium Battery Buy-Back Trust Fund, and tax credits for recycling businesses.

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  • Families and consumers would get incentives to turn in used lithium batteries through competitive grants that support accepted-collection systems and buy-back payments. The program also requires a public list of approved recycling facilities to help people find drop-off locations.
  • Manufacturers, producers, and importers would face a new 5 percent tax on battery sales that flows into the trust fund to pay for the recycling program. The tax applies to sales after December 31, 2025.
  • Recycling businesses and federal buyers would benefit from a new 30 percent business tax credit for qualified battery-detection equipment used in recycling operations. The trust fund would finance competitive grants to approved facilities and agencies would be encouraged to purchase batteries from those facilities, and the Department of Energy and EPA would issue the program rule within 5 years.

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Bill Overview

Analyzed Economic Effects

3 provisions identified: 2 benefits, 1 costs, 0 mixed.

30% credit for battery detectors

If enacted, recycling businesses would be able to claim a 30% tax credit for qualified battery detector devices. The device’s first use must be by you and it must be used in your recycling trade or business. You would not also be able to deduct or claim another credit for the same cost, and your asset basis would go down by the credit amount. This would apply to tax years beginning after December 31, 2025.

National program to recycle lithium batteries

The Energy Department and EPA would set up a national program within five years to collect and recycle used lithium batteries. The program would list approved facilities and give competitive grants to help them build easy drop-off systems. Approved sites could pay individuals who turn in used lithium batteries. The program would use only the Lithium Battery Buy-Back Trust Fund, which would receive the new battery tax receipts for taxes received after December 31, 2025. Federal agencies would be told to prioritize buying lithium batteries from approved facilities when possible.

New 5% tax on batteries

Manufacturers, producers, and importers would owe a 5% tax on each battery sale after December 31, 2025. Sellers could pass this cost on, so many shoppers may pay higher battery prices. The tax would equal 5% of the sale price.

Sponsors & CoSponsors

Sponsor

Norcross, Donald [D-NJ-1]

NJ • D

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

No roll call votes available for this bill.

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