HR 7821
Promoting Reduction of Emissions through Landscaping Equipment Act
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Bill overview
This bill creates a tax credit for businesses that purchase zero-emission electric lawn, garden, and landscape equipment. The credit is 40% of the equipment's cost, up to a maximum of $25,000 per year, with an aggregate limit of $100,000 over a 10-year period. The bill also establishes rules for what qualifies as ‘zero-emission equipment’ and includes provisions for collaboration with the Department of Energy and exceptions related to bankruptcy or business dissolution.
Key provisions
- Provides a 40% tax credit for zero-emission electric lawn, garden, and landscape equipment.
- Sets annual and aggregate limits on the credit amount ($25,000 and $100,000 respectively).
- Defines ‘zero-emission electric lawn, garden, and landscape equipment’ based on power source and exclusion of gasoline/diesel generators.
- Allows for consultation with the Department of Energy to identify alternative power sources.
- Includes a requirement for product identification numbers after December 31, 2025.
- Offers an exception to recapture rules in cases of bankruptcy or business dissolution.
- Establishes a mechanism for businesses to elect to pay the credit or transfer it.
- Makes conforming amendments to relevant sections of the Internal Revenue Code.
Who is affected
- Businesses that purchase landscaping equipment
- Landscaping companies
- Farmers and agricultural businesses
- Taxpayers
- The Department of Energy
Notable changes
Sponsors
Official sponsors from legislative records.
Primary sponsor
Cosponsors
Eleanor Holmes [D-DC-At Large] Norton
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119th CONGRESS — 2d Session
H. R. 7821
IN THE HOUSE OF REPRESENTATIVES
A BILL
To amend the Internal Revenue Code of 1986 to establish a business tax credit for the purchase of zero-emission electric lawn, garden, and landscape equipment, and for other purposes.
This Act may be cited as the Promoting Reduction of Emissions through Landscaping Equipment Act
.
Subpart E of part IV of subchapter A of chapter 1 of the Internal Revenue Code of 1986 is amended by inserting after section 48E the following new section:
For purposes of section 46, the credit for zero-emission electric lawn, garden, and landscape equipment for any taxable year is an amount equal to 40 percent of the basis of any zero-emission electric lawn, garden, and landscape equipment placed in service by the taxpayer during such taxable year.
The amount of any credit determined under subsection (a) for any taxable year may not exceed $25,000.
The aggregate amount of credits determined under subsection (a) for all taxable years within any consecutive 10-year period may not exceed $100,000.
For purposes of this section, the term zero-emission electric lawn, garden, and landscape equipment
means—
any equipment which—
is—
used primarily for lawn, garden, or landscaping purposes, and
powered—
by an electric motor drawing current from solar power, chargeable batteries, replaceable batteries, fuel cells, or through electricity drawn through a cord from the electrical power grid, or
by such alternative power sources as the Secretary may identify as generating zero-emissions, and
is not powered—
by a gasoline or diesel generator, or
solely through manual effort,
any zero-emission generator used to charge equipment described in paragraph (1),
any battery which—
is used to charge or operate equipment described in paragraph (1), and
is not included as part of such equipment, and
any property used to retrofit existing lawn, garden, or landscaping equipment to allow such equipment to operate without generating emissions.
For purposes of identifying alternative power sources under subsection (c)(1)(A)(ii)(II), the Secretary may consult with the Secretary of Energy.
With respect to any zero-emission electric lawn, garden, and landscape equipment placed in service after December 31, 2025, rules similar to the rules of section 25C(h) shall apply for purposes of this section.
No credit shall be allowed under subsection (a) with respect to any property for which a deduction or credit is allowed under any other provision of this chapter.
Paragraph (1) shall not apply with respect to any deduction allowed under section 167(a) to which section 168(k) applies for the taxable year in which the property is placed in service.
With respect to any zero-emission electric lawn, garden, and landscape equipment for which a credit was determined under subsection (a), section 50(a)(1) shall not apply if such equipment is disposed of, or otherwise ceases to be investment credit property with respect to the taxpayer, due to—
the dissolution or bankruptcy of the trade or business in which such equipment was used, or
any other circumstances as the Secretary may prescribe in regulations.
This section shall not apply with respect to any property placed in service during any taxable year beginning after the date which is 5 years after the date of enactment of this section.
Section 6417(b) of the Internal Revenue Code of 1986 is amended by adding at the end the following:
The credit for zero-emission electric lawn, garden, and landscape equipment under section 48F.
Section 6418(f)(1)(A) of the Internal Revenue Code of 1986, as amended by section 70521 of Public Law 119–21, is amended by adding at the end the following:
The credit for zero-emission electric lawn, garden, and landscape equipment under section 48F.
Section 46 of the Internal Revenue Code of 1986, as amended by section 13702 of Public Law 117–169, is amended—
in paragraph (6), by striking and
at the end,
in paragraph (7), by striking the period at the end and inserting , and
, and
by adding at the end the following:
the credit for zero-emission electric lawn, garden, and landscape equipment.
Section 49(a)(1)(C) of such Code, as amended by section 13702 of Public Law 117–169, is amended—
in clause (vii), by striking and
at the end,
in clause (viii), by striking the period at the end and inserting , and
, and
by adding at the end the following:
the basis of any zero-emission electric lawn, garden, and landscape equipment under section 48F.
The table of sections for subpart E of part IV of subchapter A of chapter 1 of the Internal Revenue Code of 1986 is amended by inserting after the item relating to section 48E the following new item:
The amendments made by this section shall apply to property placed in service after December 31, 2024.