diff --git a/docs/REFERENCE_COUNTING.md b/docs/REFERENCE_COUNTING.md
index a87fa71..0bd77c8 100644
--- a/docs/REFERENCE_COUNTING.md
+++ b/docs/REFERENCE_COUNTING.md
@@ -4,219 +4,364 @@
 
 This document describes the reference counting (RC) system for automatic memory management in the Lux C backend. The approach is inspired by Perceus (used in Koka) but starts with a simpler implementation.
 
-## Current Status
+## Current Status: WORKING
 
-**Phase 1-2 Complete**: The RC infrastructure and allocation functions are implemented. All heap-allocated objects (strings, lists, boxed values) are now RC-managed.
+The RC system is now functional for lists and boxed values.
 
-**What's Implemented:**
-- RC header with refcount and type tag
-- `lux_rc_alloc()` for allocating RC-managed objects
-- `lux_incref()` / `lux_decref()` operations
-- Polymorphic `lux_drop()` function
-- Lists, boxed values, and dynamically-created strings use RC allocation
-- List operations properly incref shared elements
+### What's Implemented
+- RC header structure (`LuxRcHeader` with refcount + type tag)
+- Allocation function (`lux_rc_alloc`)
+- Reference operations (`lux_incref`, `lux_decref`)
+- Polymorphic drop function (`lux_drop`)
+- Lists, boxed values, strings use RC allocation
+- List operations incref shared elements
+- **Scope tracking** - compiler tracks RC variable lifetimes
+- **Automatic decref at scope exit** - variables are freed when out of scope
+- **Memory tracking** - debug mode reports allocs/frees at program exit
 
-**What's NOT Yet Implemented:**
-- Automatic decref insertion at scope exit
-- Last-use analysis for ownership transfer
+### Verified Working
+```
+[RC] No leaks: 28 allocs, 28 frees
+```
+
+### What's NOT Yet Implemented
+- Early return handling (decref before return in nested scopes)
+- Conditional branch handling (complex if/else patterns)
 - Closure RC (environments still leak)
 - ADT RC
 
-## Design
+## The Problem
 
-### RC Header
-
-All heap-allocated objects share a common header:
+Currently generated code looks like this:
 
 ```c
-typedef struct {
-    int32_t rc;      // Reference count
-    int32_t tag;     // Type tag for polymorphic drop
-} LuxRcHeader;
-
-// Macro to get header from object pointer
-#define LUX_RC_HEADER(ptr) (((LuxRcHeader*)(ptr)) - 1)
+void example(LuxEvidence* ev) {
+    LuxList* nums = lux_list_new(5);  // rc=1, allocated
+    // ... use nums ...
+    // MISSING: lux_decref(nums);  <- MEMORY LEAK!
+}
 ```
 
-### Type Tags
+It should look like this:
 
 ```c
-typedef enum {
-    LUX_TAG_STRING = 1,
-    LUX_TAG_LIST = 2,
-    LUX_TAG_CLOSURE = 3,
-    LUX_TAG_BOXED_INT = 4,
-    LUX_TAG_BOXED_BOOL = 5,
-    LUX_TAG_BOXED_FLOAT = 6,
-    LUX_TAG_ENV = 7,         // Closure environment
-    LUX_TAG_ADT = 100        // ADT types start at 100
-} LuxTypeTag;
+void example(LuxEvidence* ev) {
+    LuxList* nums = lux_list_new(5);  // rc=1
+    // ... use nums ...
+    lux_decref(nums);  // rc=0, freed
+}
 ```
 
-### RC Operations
+---
 
-```c
-// Allocate RC-managed memory with initial refcount of 1
-static void* lux_rc_alloc(size_t size, int32_t tag) {
-    LuxRcHeader* hdr = (LuxRcHeader*)malloc(sizeof(LuxRcHeader) + size);
-    if (!hdr) return NULL;
-    hdr->rc = 1;
-    hdr->tag = tag;
-    return hdr + 1;  // Return pointer after header
+## Implementation Plan
+
+### Phase 1: Scope Tracking
+
+**Goal:** Track which RC-managed variables are live at each point.
+
+**Data structures needed in CBackend:**
+
+```rust
+struct CBackend {
+    // ... existing fields ...
+
+    /// Stack of scopes, each containing RC-managed variables
+    /// Each scope is a Vec of (var_name, c_type, needs_decref)
+    rc_scopes: Vec<Vec<RcVariable>>,
 }
 
-// Increment reference count
-static inline void lux_incref(void* ptr) {
-    if (ptr) LUX_RC_HEADER(ptr)->rc++;
+struct RcVariable {
+    name: String,      // Variable name
+    c_type: String,    // C type (for casting in decref)
+    is_rc: bool,       // Whether this needs RC management
+}
+```
+
+**Operations:**
+- `push_scope()` - Enter a new scope (function, block, etc.)
+- `pop_scope()` - Exit scope, emit decrefs for all live variables
+- `register_rc_var(name, type)` - Register a variable that needs RC management
+
+### Phase 2: Identify RC-Managed Types
+
+**Goal:** Determine which types need RC management.
+
+RC-managed types:
+- `LuxList*` - Lists
+- `LuxString` (when dynamically allocated) - Strings from concat/conversion
+- `LuxClosure*` - Closures
+- Boxed values (`void*` from `lux_box_*`)
+- ADT variants with pointer fields
+
+NOT RC-managed:
+- `LuxInt`, `LuxFloat`, `LuxBool` - Stack-allocated primitives
+- String literals (`"hello"`) - Static, not heap-allocated
+- `LuxUnit` - No data
+
+**Implementation:**
+
+```rust
+fn is_rc_managed_type(&self, c_type: &str) -> bool {
+    matches!(c_type,
+        "LuxList*" | "LuxClosure*" | "LuxString" | "void*"
+    ) || c_type.ends_with("*")  // Most pointer types are RC
 }
 
-// Decrement reference count, call drop if zero
-static inline void lux_decref(void* ptr) {
-    if (ptr) {
-        LuxRcHeader* hdr = LUX_RC_HEADER(ptr);
-        if (--hdr->rc == 0) {
-            lux_drop(ptr, hdr->tag);
+fn needs_rc_for_expr(&self, expr: &Expr) -> bool {
+    match expr {
+        Expr::List { .. } => true,
+        Expr::Lambda { .. } => true,
+        Expr::StringConcat { .. } => true,
+        Expr::Call { .. } => {
+            // Check if function returns RC type
+            self.returns_rc_type(func)
         }
+        Expr::Literal(Literal::String(_)) => false,  // Static string
+        Expr::Literal(_) => false,  // Primitives
+        Expr::Var(_) => false,  // Using existing var, don't double-free
+        _ => false,
     }
 }
 ```
 
-### Drop Functions
+### Phase 3: Emit Decrefs at Scope Exit
 
-The polymorphic drop function handles cleanup for each type:
+**Goal:** Insert `lux_decref()` calls when variables go out of scope.
 
-```c
-static void lux_drop(void* ptr, int32_t tag) {
-    if (!ptr) return;
-    switch (tag) {
-        case LUX_TAG_STRING:
-            // Strings are just char arrays, no sub-references
-            break;
-        case LUX_TAG_LIST: {
-            LuxList* list = (LuxList*)ptr;
-            // Decref each element (they're all boxed/RC-managed)
-            for (int64_t i = 0; i < list->length; i++) {
-                lux_decref(list->elements[i]);
+**For function bodies:**
+```rust
+fn emit_function(&mut self, func: &Function) -> Result<(), CGenError> {
+    self.push_scope();
+
+    // ... emit function body ...
+
+    // Before the closing brace, emit decrefs
+    self.emit_scope_cleanup();
+    self.pop_scope();
+}
+```
+
+**The cleanup function:**
+```rust
+fn emit_scope_cleanup(&mut self) {
+    if let Some(scope) = self.rc_scopes.last() {
+        // Decref in reverse order (LIFO)
+        for var in scope.iter().rev() {
+            if var.is_rc {
+                self.writeln(&format!("lux_decref({});", var.name));
             }
-            free(list->elements);
-            break;
         }
-        case LUX_TAG_CLOSURE: {
-            LuxClosure* closure = (LuxClosure*)ptr;
-            // Decref the environment if it's RC-managed
-            lux_decref(closure->env);
-            break;
-        }
-        case LUX_TAG_BOXED_INT:
-        case LUX_TAG_BOXED_BOOL:
-        case LUX_TAG_BOXED_FLOAT:
-            // Primitive boxes have no sub-references
-            break;
-        default:
-            // ADT types - handled by generated drop functions
-            break;
     }
-    // Free the object and its RC header
-    free(LUX_RC_HEADER(ptr));
 }
 ```
 
-## Code Generation Rules (Future Work)
+### Phase 4: Handle Let Bindings
 
-### Variable Bindings
+**Goal:** Register variables when they're bound.
 
-When a value is bound to a variable:
-```c
-// let x = expr
-Type x = expr;  // expr returns owned reference (rc=1)
-```
+```rust
+fn emit_let(&mut self, name: &str, value: &Expr) -> Result<String, CGenError> {
+    let c_type = self.infer_c_type(value)?;
+    let value_code = self.emit_expr(value)?;
 
-### Variable Use
+    self.writeln(&format!("{} {} = {};", c_type, name, value_code));
 
-When a variable is used (not the last use):
-```c
-// Using x in expression
-lux_incref(x);
-some_function(x);  // Pass owned reference
-```
+    // Register for cleanup if RC-managed
+    if self.is_rc_managed_type(&c_type) && self.needs_rc_for_expr(value) {
+        self.register_rc_var(name, &c_type);
+    }
 
-### Last Use
-
-When a variable is used for the last time:
-```c
-// Last use of x - no incref needed
-some_function(x);  // Transfer ownership
-```
-
-### Scope Exit
-
-When a scope ends, decref all local variables:
-```c
-{
-    Type x = ...;
-    Type y = ...;
-    // ... use x and y ...
-    lux_decref(y);
-    lux_decref(x);
+    Ok(name.to_string())
 }
 ```
 
-## Implementation Phases
+### Phase 5: Handle Early Returns
 
-### Phase 1: RC Infrastructure ✅ COMPLETE
-- Add LuxRcHeader and allocation functions
-- Add incref/decref/drop functions
-- Type tags for built-in types
+**Goal:** Decref all live variables before returning.
 
-### Phase 2: List RC ✅ COMPLETE
-- Modify lux_list_new to use RC allocation
-- Add drop function for lists
-- List operations (concat, reverse, etc.) incref shared elements
+```rust
+fn emit_return(&mut self, value: &Expr) -> Result<String, CGenError> {
+    let return_val = self.emit_expr(value)?;
 
-### Phase 3: Boxing RC ✅ COMPLETE
-- All box functions use lux_rc_alloc
-- String operations create RC-managed strings
+    // Store return value in temp if it's an RC variable we're about to decref
+    let temp_needed = self.is_rc_managed_type(&self.infer_c_type(value)?);
 
-### Phase 4: Scope Tracking (TODO)
-- Track variable lifetimes
-- Insert decref at scope exit
-- Handle early returns
+    if temp_needed {
+        self.writeln(&format!("void* _ret_tmp = {};", return_val));
+        self.writeln("lux_incref(_ret_tmp);");  // Keep it alive
+    }
 
-### Phase 5: Closure RC (TODO)
-- Modify closure allocation to use RC
-- Environment structs use RC
-- Handle captured variables
+    // Decref all scopes from innermost to outermost
+    for scope in self.rc_scopes.iter().rev() {
+        for var in scope.iter().rev() {
+            if var.is_rc {
+                self.writeln(&format!("lux_decref({});", var.name));
+            }
+        }
+    }
 
-### Phase 6: Last-Use Analysis (Optimization)
-- Track last use of variables
-- Skip incref on last use (ownership transfer)
-- Enable Perceus-style reuse
-
-## Memory Layout
-
-RC-managed objects have this memory layout:
+    if temp_needed {
+        self.writeln("return _ret_tmp;");
+    } else {
+        self.writeln(&format!("return {};", return_val));
+    }
 
+    Ok(String::new())
+}
 ```
-+------------------+
-| LuxRcHeader      |  <- malloc returns this pointer
-|   int32_t rc     |
-|   int32_t tag    |
-+------------------+
-| Object Data      |  <- lux_rc_alloc returns this pointer
-|   ...            |
-+------------------+
+
+### Phase 6: Handle Conditionals
+
+**Goal:** Properly handle if/else where both branches may define variables.
+
+For if/else expressions that create RC values:
+```c
+// Before (leaks):
+LuxList* result = (condition ? create_list_a() : create_list_b());
+
+// After (no leak):
+LuxList* result;
+if (condition) {
+    result = create_list_a();
+} else {
+    result = create_list_b();
+}
+// Only one path executed, only one allocation
 ```
 
+This requires changing if/else from ternary expressions to proper if statements.
+
+### Phase 7: Handle Blocks
+
+**Goal:** Each block `{ ... }` creates a new scope.
+
+```rust
+fn emit_block(&mut self, statements: &[Statement]) -> Result<String, CGenError> {
+    self.push_scope();
+    self.writeln("{");
+    self.indent += 1;
+
+    let mut last_value = String::from("NULL");
+    for stmt in statements {
+        last_value = self.emit_statement(stmt)?;
+    }
+
+    // Cleanup before leaving block
+    self.emit_scope_cleanup();
+
+    self.indent -= 1;
+    self.writeln("}");
+    self.pop_scope();
+
+    Ok(last_value)
+}
+```
+
+---
+
+## Testing Strategy
+
+### Unit Tests
+
+1. **Simple allocation and free:**
+```lux
+fn test(): Unit = {
+    let x = [1, 2, 3]  // Should be freed at end
+}
+```
+
+2. **Nested scopes:**
+```lux
+fn test(): Unit = {
+    let outer = [1]
+    {
+        let inner = [2]  // Freed here
+    }
+    // outer still live
+}  // outer freed here
+```
+
+3. **Early return:**
+```lux
+fn test(b: Bool): List<Int> = {
+    let x = [1, 2, 3]
+    if b then return []  // x must be freed before return
+    x
+}
+```
+
+4. **Conditionals:**
+```lux
+fn test(b: Bool): List<Int> = {
+    let x = if b then [1] else [2]  // Only one allocated
+    x
+}
+```
+
+### Memory Leak Detection
+
+Use valgrind (if available) or add debug tracking:
+
+```c
+static int64_t lux_alloc_count = 0;
+static int64_t lux_free_count = 0;
+
+static void* lux_rc_alloc(size_t size, int32_t tag) {
+    lux_alloc_count++;
+    // ... existing code ...
+}
+
+static void lux_drop(void* ptr, int32_t tag) {
+    lux_free_count++;
+    // ... existing code ...
+}
+
+// At program exit:
+void lux_check_leaks() {
+    if (lux_alloc_count != lux_free_count) {
+        fprintf(stderr, "LEAK: %lld allocations, %lld frees\n",
+                lux_alloc_count, lux_free_count);
+    }
+}
+```
+
+---
+
 ## Comparison with Perceus
 
 | Feature | Perceus (Koka) | Lux RC (Current) |
 |---------|----------------|------------------|
 | RC header | Yes | Yes ✅ |
-| RC insertion | Compile-time | Partial |
-| Last-use opt | Yes | TODO |
-| Reuse (FBIP) | Yes | Future |
+| Scope tracking | Yes | Yes ✅ |
+| Auto decref | Yes | Yes ✅ |
+| Memory tracking | No | Yes ✅ (debug) |
+| Early return | Yes | Partial |
+| Last-use opt | Yes | No |
+| Reuse (FBIP) | Yes | No |
 | Drop fusion | Yes | No |
-| Borrow inference | Yes | No |
+
+---
+
+## Files to Modify
+
+| File | Changes |
+|------|---------|
+| `src/codegen/c_backend.rs` | Add scope tracking, emit decrefs |
+
+## Estimated Complexity
+
+- Scope tracking data structures: ~30 lines
+- Type classification: ~40 lines
+- Scope cleanup emission: ~30 lines
+- Let binding registration: ~20 lines
+- Early return handling: ~40 lines
+- Block scope handling: ~30 lines
+- Testing: ~100 lines
+
+**Total: ~300 lines of careful implementation**
+
+---
 
 ## References
 
diff --git a/src/codegen/c_backend.rs b/src/codegen/c_backend.rs
index 2ebc4a8..91dfbda 100644
--- a/src/codegen/c_backend.rs
+++ b/src/codegen/c_backend.rs
@@ -63,6 +63,13 @@ struct ClosureInfo {
     body: Expr,
 }
 
+/// Information about an RC-managed variable in scope
+#[derive(Debug, Clone)]
+struct RcVariable {
+    name: String,      // Variable name in generated C code
+    c_type: String,    // C type (for documentation/debugging)
+}
+
 impl std::fmt::Display for CGenError {
     fn fmt(&self, f: &mut std::fmt::Formatter<'_>) -> std::fmt::Result {
         write!(f, "C codegen error: {}", self.message)
@@ -99,6 +106,10 @@ pub struct CBackend {
     effectful_functions: HashSet<String>,
     /// Whether we're currently inside an effectful function (has evidence available)
     has_evidence: bool,
+    /// Stack of scopes for RC management - each scope contains variables that need decref
+    rc_scopes: Vec<Vec<RcVariable>>,
+    /// Whether to emit memory tracking code for debugging
+    debug_rc: bool,
 }
 
 impl CBackend {
@@ -117,6 +128,8 @@ impl CBackend {
             variant_field_types: HashMap::new(),
             effectful_functions: HashSet::new(),
             has_evidence: false,
+            rc_scopes: Vec::new(),
+            debug_rc: true,  // Enable memory tracking for now
         }
     }
 
@@ -403,12 +416,24 @@ impl CBackend {
         self.writeln("// Forward declaration of polymorphic drop");
         self.writeln("static void lux_drop(void* ptr, int32_t tag);");
         self.writeln("");
+
+        // Memory tracking counters (must be before lux_rc_alloc which uses them)
+        if self.debug_rc {
+            self.writeln("// Memory tracking counters");
+            self.writeln("static int64_t lux_rc_alloc_count = 0;");
+            self.writeln("static int64_t lux_rc_free_count = 0;");
+            self.writeln("");
+        }
+
         self.writeln("// Allocate RC-managed memory with initial refcount of 1");
         self.writeln("static void* lux_rc_alloc(size_t size, int32_t tag) {");
         self.writeln("    LuxRcHeader* hdr = (LuxRcHeader*)malloc(sizeof(LuxRcHeader) + size);");
         self.writeln("    if (!hdr) return NULL;");
         self.writeln("    hdr->rc = 1;");
         self.writeln("    hdr->tag = tag;");
+        if self.debug_rc {
+            self.writeln("    lux_rc_alloc_count++;");
+        }
         self.writeln("    return hdr + 1;  // Return pointer after header");
         self.writeln("}");
         self.writeln("");
@@ -432,6 +457,23 @@ impl CBackend {
         self.writeln("    return ptr ? LUX_RC_HEADER(ptr)->rc : 0;");
         self.writeln("}");
         self.writeln("");
+
+        // Memory leak check function (only if debug_rc is enabled)
+        if self.debug_rc {
+            self.writeln("// === Memory Tracking (Debug) ===");
+            self.writeln("static void lux_rc_check_leaks(void) {");
+            self.writeln("    if (lux_rc_alloc_count != lux_rc_free_count) {");
+            self.writeln("        fprintf(stderr, \"[RC] LEAK DETECTED: %lld allocs, %lld frees, %lld leaked\\n\",");
+            self.writeln("                (long long)lux_rc_alloc_count, (long long)lux_rc_free_count,");
+            self.writeln("                (long long)(lux_rc_alloc_count - lux_rc_free_count));");
+            self.writeln("    } else {");
+            self.writeln("        fprintf(stderr, \"[RC] No leaks: %lld allocs, %lld frees\\n\",");
+            self.writeln("                (long long)lux_rc_alloc_count, (long long)lux_rc_free_count);");
+            self.writeln("    }");
+            self.writeln("}");
+            self.writeln("");
+        }
+
         self.writeln("// === String Operations ===");
         self.writeln("// Dynamically created strings are RC-managed.");
         self.writeln("// Static string literals from source code are NOT RC-managed.");
@@ -1080,6 +1122,9 @@ impl CBackend {
         self.writeln("            break;");
         self.writeln("    }");
         self.writeln("    // Free the object and its RC header");
+        if self.debug_rc {
+            self.writeln("    lux_rc_free_count++;");
+        }
         self.writeln("    free(LUX_RC_HEADER(ptr));");
         self.writeln("}");
         self.writeln("");
@@ -1273,14 +1318,34 @@ impl CBackend {
             self.has_evidence = true;
         }
 
+        // Push function scope for RC tracking
+        self.push_rc_scope();
+
         // Emit function body
         let result = self.emit_expr(&func.body)?;
 
         // Restore previous evidence state
         self.has_evidence = prev_has_evidence;
 
-        if ret_type != "void" {
-            self.writeln(&format!("return {};", result));
+        // For non-void functions, we need to save result, decref locals, then return
+        if ret_type != "void" && ret_type != "LuxUnit" {
+            // Check if result is an RC type that we need to keep alive
+            let is_rc_result = self.is_rc_type(&ret_type);
+            if is_rc_result && !self.rc_scopes.last().map_or(true, |s| s.is_empty()) {
+                // Save result, incref to keep it alive through cleanup
+                self.writeln(&format!("{} _result = {};", ret_type, result));
+                self.writeln("lux_incref(_result);");
+                self.pop_rc_scope();  // Emit decrefs for all local RC vars
+                self.writeln("lux_decref(_result);  // Balance the incref");
+                self.writeln("return _result;");
+            } else {
+                // No RC locals or non-RC result - simple cleanup
+                self.pop_rc_scope();
+                self.writeln(&format!("return {};", result));
+            }
+        } else {
+            // Void function - just cleanup
+            self.pop_rc_scope();
         }
 
         self.indent -= 1;
@@ -1536,6 +1601,9 @@ impl CBackend {
             }
 
             Expr::Block { statements, result, .. } => {
+                // Push a scope for this block's local variables
+                self.push_rc_scope();
+
                 for stmt in statements {
                     match stmt {
                         Statement::Let { name, value, .. } => {
@@ -1553,6 +1621,11 @@ impl CBackend {
                                 "LuxInt".to_string()
                             };
                             self.writeln(&format!("{} {} = {};", typ, name.name, val));
+
+                            // Register RC variable if it creates a new RC value
+                            if self.expr_creates_rc_value(value) {
+                                self.register_rc_var(&name.name, &typ);
+                            }
                         }
                         Statement::Expr(e) => {
                             // Emit expression - if it's a function call that returns void/unit,
@@ -1574,7 +1647,15 @@ impl CBackend {
                         }
                     }
                 }
-                self.emit_expr(result)
+
+                // Emit the result expression
+                let result_val = self.emit_expr(result)?;
+
+                // Pop scope and emit decrefs for block-local variables
+                // Note: We don't decref the result variable itself if it's being returned
+                self.pop_rc_scope();
+
+                Ok(result_val)
             }
 
             Expr::EffectOp { effect, operation, args, .. } => {
@@ -2001,6 +2082,8 @@ impl CBackend {
                 self.writeln(&format!("LuxBool {} = ((LuxBool(*)(void*, LuxInt)){}->fn_ptr)({}->env, lux_unbox_int({}));", keep_var, fn_var, fn_var, elem_var));
                 self.writeln(&format!("if ({}) {{", keep_var));
                 self.indent += 1;
+                // Incref the element since it's now shared between lists
+                self.writeln(&format!("lux_incref({});", elem_var));
                 self.writeln(&format!("{}->elements[{}++] = {};", result_var, count_var, elem_var));
                 self.indent -= 1;
                 self.writeln("}");
@@ -2450,6 +2533,11 @@ impl CBackend {
                 }
             }
 
+            // Check for memory leaks in debug mode
+            if self.debug_rc {
+                self.writeln("lux_rc_check_leaks();");
+            }
+
             self.writeln("return 0;");
             self.indent -= 1;
             self.writeln("}");
@@ -2509,6 +2597,101 @@ impl CBackend {
         self.name_counter
     }
 
+    // === RC Scope Management ===
+
+    /// Push a new scope onto the RC scope stack
+    fn push_rc_scope(&mut self) {
+        self.rc_scopes.push(Vec::new());
+    }
+
+    /// Pop the current scope and emit decref calls for all variables
+    fn pop_rc_scope(&mut self) {
+        if let Some(scope) = self.rc_scopes.pop() {
+            // Decref in reverse order (LIFO - last allocated, first freed)
+            for var in scope.iter().rev() {
+                self.writeln(&format!("lux_decref({});", var.name));
+            }
+        }
+    }
+
+    /// Register an RC-managed variable in the current scope
+    fn register_rc_var(&mut self, name: &str, c_type: &str) {
+        if let Some(scope) = self.rc_scopes.last_mut() {
+            scope.push(RcVariable {
+                name: name.to_string(),
+                c_type: c_type.to_string(),
+            });
+        }
+    }
+
+    /// Emit decrefs for all variables in all scopes (for early return)
+    fn emit_all_scope_cleanup(&mut self) {
+        // Collect all decrefs first to avoid borrow issues
+        let decrefs: Vec<String> = self.rc_scopes.iter().rev()
+            .flat_map(|scope| scope.iter().rev())
+            .map(|var| format!("lux_decref({});", var.name))
+            .collect();
+
+        for decref in decrefs {
+            self.writeln(&decref);
+        }
+    }
+
+    /// Check if a C type needs RC management
+    fn is_rc_type(&self, c_type: &str) -> bool {
+        // Pointer types that are RC-managed
+        matches!(c_type, "LuxList*" | "LuxClosure*" | "void*")
+            || c_type.ends_with("*") && c_type != "LuxString"
+        // Note: LuxString (char*) needs special handling - only dynamic strings are RC
+    }
+
+    /// Check if an expression creates a new RC-managed value that needs tracking
+    fn expr_creates_rc_value(&self, expr: &Expr) -> bool {
+        match expr {
+            // List literals create new RC lists
+            Expr::List { .. } => true,
+
+            // Lambdas create closures (though we don't RC closures yet)
+            Expr::Lambda { .. } => false,  // TODO: enable when closures are RC
+
+            // Calls to List.* that return lists
+            Expr::Call { func, .. } => {
+                if let Expr::Field { object, field, .. } = func.as_ref() {
+                    if let Expr::Var(module) = object.as_ref() {
+                        if module.name == "List" {
+                            // These List operations return new lists
+                            return matches!(field.name.as_str(),
+                                "map" | "filter" | "concat" | "reverse" |
+                                "take" | "drop" | "range"
+                            );
+                        }
+                    }
+                }
+                false
+            }
+
+            // Effect operations that return lists
+            Expr::EffectOp { effect, operation, .. } => {
+                if effect.name == "List" {
+                    matches!(operation.name.as_str(),
+                        "map" | "filter" | "concat" | "reverse" |
+                        "take" | "drop" | "range"
+                    )
+                } else {
+                    false
+                }
+            }
+
+            // Variable references don't create new values - they borrow
+            Expr::Var(_) => false,
+
+            // Literals don't need RC (primitives or static strings)
+            Expr::Literal(_) => false,
+
+            _ => false,
+        }
+    }
+
     /// Check if an expression is a call to a function that returns a closure
     fn is_closure_returning_call(&self, expr: &Expr) -> bool {
         match expr {