To amend the Internal Revenue Code of 1986 to allow a credit against tax for expenses relating to the purchase of battery detectors, and for other purposes.
Analysis under review: This bill has generated analysis that may be too generic or incomplete. Clause-level evidence remains available below.
Summary
What This Bill Does
The Battery Fire Prevention Act creates a three-part system to address the growing risk of lithium battery fires: it offers tax credits to recyclers who buy battery detection equipment, imposes a 5% excise tax on all battery sales, and uses that tax revenue to fund a national lithium battery buy-back and recycling program.
Who Benefits and How
Recycling companies benefit from a 30% tax credit on battery detection equipment purchases (X-ray, AI, RFID technology). Approved recycling facilities receive competitive grants to establish battery collection systems and can offer financial incentives to individuals who return used batteries. Battery detection technology manufacturers gain a new market driven by the tax credit.
Who Bears the Burden and How
Battery manufacturers, producers, and importers face a new 5% excise tax on all battery sales, which may be passed on to consumers. Electronics and consumer goods companies that use batteries face higher input costs. Federal agencies must prioritize purchasing lithium batteries from approved recycling facilities.
Key Provisions
- 30% tax credit for businesses purchasing battery detection equipment for recycling operations
- 5% excise tax on all battery sales by manufacturers, producers, or importers
- Lithium Battery Buy-Back Trust Fund funded by the excise tax revenue
- National Battery Recycling Program jointly administered by DOE and EPA within 5 years
Evidence Chain:
This summary is generated from the full bill text using AI analysis. Expand "Detailed Analysis" below for identified beneficiaries/burden bearers.
At a Glance
What This Bill Does
Establishes a comprehensive battery fire prevention and recycling framework by creating a tax credit for battery detectors, imposing an excise tax on battery sales, and establishing a national lithium battery buy-back and recycling program.
Key Policy Areas
Taxation, Energy, Environment, Recycling, Fire Safety
Primary Purpose
Establishes a comprehensive battery fire prevention and recycling framework by creating a tax credit for battery detectors, imposing an excise tax on battery sales, and establishing a national lithium battery buy-back and recycling program.
Policy Domains
Battery Fire Prevention Act
Identified Gains
Contextual inference, no direct clause citation- Recycling companies
- Battery detection technology manufacturers
- Environmental safety
Contextual inference, no direct clause citation
Identified Costs
Contextual inference, no direct clause citation- Battery manufacturers and importers
- Consumer electronics companies
- Consumers
Contextual inference, no direct clause citation
Legislative Progress
IntroducedMr. Norcross introduced the following bill; which was referred to …
Stakeholder Effects
cui bono?How this legislation distributes effects. Mention counts reflect frequency, not effect magnitude.
Approved lithium battery recycling facilities, Lithium battery recycling facilities, Recycling businesses purchasing battery detection equipment
Battery detection equipment manufacturers (X-ray, AI, RFID), Battery manufacturers, Battery manufacturers and producers
Positive-direction: Battery detection equipment manufacturers (X-ray, AI, RFID)
Negative-direction: Battery manufacturers, Battery manufacturers and producers
Department of Energy, Federal agencies purchasing lithium batteries
Positive-direction: Department of Energy
Negative-direction: Federal agencies purchasing lithium batteries
Consumer electronics companies, Consumers of battery-powered products
Bill Structure & Actor Mappings
Who is "The Secretary" in each section?
- "the_secretary"
- → Secretary of Energy
- "the_administrator"
- → Administrator of the Environmental Protection Agency
Key Definitions
Terms defined in this bill
Amounts paid for purchase of any device using X-ray, AI, RFID, or other proven technology to detect batteries, used in trade or business of recycling.
A lithium metal battery or a lithium-ion battery.
We use a combination of our own taxonomy and classification in addition to large language models to assess meaning and potential beneficiaries. High confidence means strong textual evidence. Always verify with the original bill text.
Learn more about our methodology