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.
Summary
What This Bill Does
The bill creates a 30% tax credit (Section 45BB) for qualified battery detector expenses paid by businesses in the recycling trade, covering devices using X-ray, AI, RFID, or other proven technology to detect batteries, defines the new IRC Section 45BB establishing the battery detector credit equal to 30% of qualified battery detector expenses, and amends Chapter 32 of the Internal Revenue Code to impose a 5% excise tax on the sale of any battery by the manufacturer, producer, or importer, effective for sales after December 31, 2025. It relies on tax credits, definition changes, tax rate changes, and appropriations. The main policy areas are Environment, Trade, Taxation, and Energy.
Who Benefits and How
Recycling businesses purchasing battery detection equipment could see lower costs, Department of Energy could gain revenue opportunities, and Lithium battery recycling facilities could gain revenue opportunities.
Who Bears the Burden and How
Battery importers could face higher costs, Battery manufacturers and producers could face higher costs, and Battery manufacturers could face higher costs.
Key Provisions
- Creates a 30% tax credit (Section 45BB) for qualified battery detector expenses paid by businesses in the recycling trade, covering devices using X-ray, AI, RFID, or other proven technology to detect batteries.
- Defines the new IRC Section 45BB establishing the battery detector credit equal to 30% of qualified battery detector expenses.
- Amends Chapter 32 of the Internal Revenue Code to impose a 5% excise tax on the sale of any battery by the manufacturer, producer, or importer, effective for sales after December 31, 2025.
- Establishes the new IRC Section 4191 imposing a 5% excise tax on the sale of any battery by the manufacturer, producer, or importer. This is the operative statutory text of the battery tax.
- Establishes the Lithium Battery Buy-Back Trust Fund in the Treasury, funded by revenues from the Section 4191 battery tax. Amounts are available without further appropriation to the Secretary of Energy for the National...
Evidence Chain:
This summary is generated from the full bill text using AI analysis. Expand "Detailed Analysis" below for identified beneficiaries/burden bearers with clause-level evidence links.
At a Glance
What This Bill Does
The bill creates a 30% tax credit (Section 45BB) for qualified battery detector expenses paid by businesses in the recycling trade, covering devices using X-ray, AI, RFID, or other proven technology to detect batteries, defines the new IRC Section 45BB establishing the battery detector credit equal to 30% of qualified battery detector expenses, and amends Chapter 32 of the Internal Revenue Code to impose a 5% excise tax on the sale of any battery by the manufacturer, producer, or importer, effective for sales after December 31, 2025.
Key Policy Areas
Environment, Trade, Taxation, Energy
Primary Purpose
The bill creates a 30% tax credit (Section 45BB) for qualified battery detector expenses paid by businesses in the recycling trade, covering devices using X-ray, AI, RFID, or other proven technology to detect batteries, defines the new IRC Section 45BB establishing the battery detector credit equal to 30% of qualified battery detector expenses, and amends Chapter 32 of the Internal Revenue Code to impose a 5% excise tax on the sale of any battery by the manufacturer, producer, or importer, effective for sales after December 31, 2025.
Policy Domains
Battery Fire Prevention Act
Identified Gains
- Recycling businesses purchasing battery detection equipment
- Department of Energy
- Lithium battery recycling facilities
- Approved lithium battery recycling facilities
- Battery detection equipment manufacturers (X-ray, AI, RFID)
Identified Costs
- Battery importers
- Battery manufacturers and producers
- Battery manufacturers
- Consumer electronics companies
- Federal agencies purchasing lithium batteries
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