REDUCE Act of 2023

The REDUCE Act of 2023 imposes a gradually increasing tax on virgin plastic resin and single-use plastic products entering or sold in the U.S., starting at 10 cents per pound in 2024 and rising to 20 cents per pound by 2026. Manufacturers, producers, and importers of plastic resin will pay this tax, with exemptions for small businesses producing less than 10 tons annually. Revenue from the tax will fund a Plastic Waste Reduction Fund to support recycling infrastructure, marine debris cleanup, and environmental justice initiatives. The bill defines "covered items" as single-use plastic products like packaging, beverage containers, and food service items, while excluding certain medical and hygiene products. The tax will begin on January 1, 2024, with rates adjusted annually for inflation after 2026.