1. Short title This Act may be cited as the Rewarding Efforts to Decrease Unrecycled Contaminants in Ecosystems Act of 2023 or the REDUCE Act of 2023 . 2. Excise tax on plastics (a) In general Chapter 38 of the Internal Revenue Code of 1986 is amended by adding at the end thereof the following new subchapter: E Tax on plastics Sec. 4691. Imposition of tax. Sec. 4692. Definitions and special rules. 4691. Imposition of tax (a) General rule There is hereby imposed— (1) a tax on— (A) the entry into the United States of any taxable virgin plastic resin for consumption, use, or warehousing, and (B) the sale of any taxable virgin plastic resin sold by an applicable entity unless there was a prior taxable entry of such resin under subparagraph (A), and (2) a tax on the entry into the United States of any imported covered item. (b) Amount of tax (1) Taxable virgin plastic resin (A) In general The amount of the tax imposed under subsection (a)(1) shall be determined in accordance with the following table: For any entry or sale during calendar year: The tax is the following amount per pound of taxable virgin plastic resin: 2024 10 cents 2025 15 cents 2026 20 cents 2027 or thereafter Adjusted amount. (B) Adjusted amount (i) In general For purposes of subparagraph (A), the adjusted amount for any entry or sale during any calendar year beginning after December 31, 2026, shall be equal to the sum of— (I) 20 cents, plus (II) an amount equal to— (aa) 20 cents, multiplied by (bb) the cost-of-living adjustment determined under section 1(f)(3) for the calendar year, determined by substituting calendar year 2025 for calendar year 2016 in subparagraph (A)(ii) thereof. (ii) Rounding If any amount determined under clause (i) is not a multiple of 1 cent, such amount shall be rounded to the nearest multiple of 1 cent. (2) Imported covered items (A) In general Except as provided in subparagraph (B), the amount of the tax imposed under paragraph (2) of subsection (a) on any imported covered item shall be an amount equal the product of— (i)