Referred to the Committee on Ways and Means, and in addition to the Committees on Energy and Commerce, and Oversight and Government Reform, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
The Battery Fire Prevention Act creates a 30 percent tax credit for businesses in the recycling industry that purchase battery detection devices, such as those using X-ray technology or artificial intelligence to identify batteries in waste streams. To fund battery recycling initiatives, the bill imposes a 5 percent tax on all battery sales by manufacturers and importers beginning January 1, 2026, with revenue directed to a new Lithium Battery Buy-Back Trust Fund. The Department of Energy and Environmental Protection Agency must jointly establish a National Battery Recycling Program within five years that identifies approved recycling facilities, awards grants to support collection systems for used lithium batteries, and allows consumers to receive financial incentives for turning in old batteries. The bill affects battery manufacturers, recycling businesses, and consumers, with the tax credit and recycling program intended to reduce fire hazards by improving battery detection and recovery rates in the waste management process.
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