The REDUCE Act of 2023 imposes a new federal excise tax on virgin plastic resins and single-use plastic products, starting at 10 cents per pound in 2024 and increasing to 20 cents by 2026, with adjustments for inflation thereafter. The tax applies to domestically manufactured virgin plastic resins and imported plastic products like beverage containers, food packaging, bags, and utensils, though certain medical and hygiene products are exempt. Small manufacturers and importers producing fewer than 10 tons annually are exempt from the tax, and products exported or used in non-plastic products may qualify for credits or exemptions. The bill establishes a Plastic Waste Reduction Fund to receive all tax revenue, which will fund improvements to recycling infrastructure, reuse systems, plastic waste cleanup programs, and environmental justice initiatives related to plastic pollution, though the fund cannot support waste-to-energy or chemical conversion projects. The legislation takes effect January 1, 2024.
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