Threshold logic is gaining prominence as an alternative to Boolean logic. The main reason for this trend is the availability of devices that implement these circuits efficiently (current mode, differential mode circuits), as well as the promise they hold for the future nanoalldevices (RTDs, SETs, QCAs and other nano devices). This has generated renewed interest in the design automation community to design efficient CAD tools for threshold logic. Recently a lot of work has been done to synthesize threshold logic circuits. So far there has been no efficient method to verify the synthesized circuits. In this work we address the problem of combinational equivalence checking for threshold circuits. We propose a new algorithm, to obtain compact functional representation of threshold elements. We give the proof of correctness, and analyze its runtime complexity. We use this polynomial time algorithm to develop a new methodology to verify threshold circuits. We report the result of our experiments, comparing the proposed methodology to the naive approach. We get up to 189X improvement in the run time (23X on average), and could verify circuits that the naive approach could not.