REDUCE Act of 2023

The REDUCE Act of 2023 imposes an excise tax on virgin plastic resin and certain single-use plastic products, starting at 10 cents per pound in 2024 and increasing to 20 cents per pound by 2026 (with annual inflation adjustments). The tax applies to manufacturers, producers, and importers of plastic products, with exemptions for small businesses producing less than 10 tons annually. Revenue from the tax will fund the Plastic Waste Reduction Fund, which will support recycling infrastructure, reuse systems, and marine debris cleanup efforts. The bill specifically excludes medical products, certain packaging, and hygiene items from the tax requirements.