Promoting Reduction of Emissions through Landscaping Equipment Act
Summary
What This Bill Does
The Promoting Reduction of Emissions through Landscaping Equipment Act creates an investment tax credit equal to 40 percent of the basis of qualifying zero-emission lawn, garden, and landscaping property placed in service. The credit is capped at $25,000 in one taxable year and $100,000 across all taxable years in any consecutive ten-year period.
Qualifying property includes lawn, garden, or landscaping equipment powered by solar electricity, rechargeable or replaceable batteries, fuel cells, a power cord, or another zero-emission source approved by Treasury. It also includes zero-emission charging generators, separate batteries used with the equipment, and property that retrofits existing equipment for emissions-free operation. Gasoline- or diesel-generator-powered equipment and equipment powered only by manual effort are excluded.
Equipment placed in service after 2025 must satisfy product-identification-number rules. A taxpayer generally cannot claim this credit when another tax deduction or credit covers the same property, except for specified bonus depreciation. Ordinary investment-credit recapture does not apply when the equipment ceases to qualify because the business dissolves or enters bankruptcy, or in other circumstances Treasury prescribes.
The credit is eligible for direct payment under section 6417 and transfer under section 6418. It applies to property placed in service after December 31, 2024, but terminates for property placed in service in taxable years beginning more than five years after enactment.
Who Benefits and How
Landscaping businesses, grounds-maintenance contractors, and other qualifying taxpayers receive a 40 percent equipment subsidy. Tax-exempt or other applicable entities may use direct payment, while eligible owners may transfer the credit. Manufacturers and sellers of electric mowers, tools, batteries, fuel cells, charging systems, and retrofit kits may gain demand. Bankrupt or dissolved businesses avoid recapture in covered circumstances.
Who Bears the Burden and How
Taxpayers must document equipment basis, zero-emission power, product identifiers, placement dates, annual and rolling ten-year limits, and absence of prohibited double benefits. IRS investment-credit staff must administer direct-pay, transfer, recapture, and sunset rules. Manufacturers must support product identification. Gasoline- and diesel-powered equipment suppliers may lose demand, while manual tools receive no credit. Federal business-tax accounts bear the credit cost.
Key Provisions
- Creates a credit equal to 40 percent of qualifying equipment basis.
- Caps credits at $25,000 annually and $100,000 over ten years.
- Covers electric equipment, charging generators, batteries, and retrofits.
- Excludes gasoline, diesel, and manual-only equipment.
- Makes the credit eligible for direct payment and transfer.
- Requires product identification for equipment placed in service after 2025.
- Prohibits most double tax benefits while preserving specified bonus depreciation.
- Waives recapture for covered bankruptcy or dissolution events.
- Terminates eligibility after the five-year statutory window.
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
Creates a five-year, transferable and direct-pay business tax credit equal to 40 percent of the basis of zero-emission lawn, garden, or landscaping equipment, charging systems, separate batteries, and retrofits, capped at $25,000 annually and $100,000 over any consecutive ten years.
Key Policy Areas
Clean Equipment Tax Credits, Landscaping Equipment, Business Investment Credits, Zero-Emission Technology, Battery and Fuel Cell Equipment
Primary Purpose
Creates a five-year, transferable and direct-pay business tax credit equal to 40 percent of the basis of zero-emission lawn, garden, or landscaping equipment, charging systems, separate batteries, and retrofits, capped at $25,000 annually and $100,000 over any consecutive ten years.
Policy Domains
Section 2 zero-emission landscaping equipment credit
Identified Gains
- Landscaping businesses buying electric equipment
- Grounds-maintenance contractors
- Applicable entities using direct payment
- Taxpayers transferring equipment credits
- Electric landscaping-equipment manufacturers
- Battery manufacturers serving landscaping equipment
- Fuel-cell equipment suppliers
- Landscaping retrofit-kit suppliers
Identified Costs
- Gasoline landscaping-equipment suppliers
- Diesel landscaping-equipment suppliers
- Taxpayers documenting product identifiers
- Taxpayers tracking rolling credit limits
- IRS investment-credit administrators
- Federal business-income-tax accounts
- Manual landscaping-tool producers outside eligibility
Sponsors
Legislative Progress
In CommitteeReferred to the House Committee on Ways and Means.
Introduced in House
Mr. Correa (for himself, Ms. Castor of Florida, Ms. Davids …
Stakeholder Effects
cui bono?How this legislation distributes effects. Mention counts reflect frequency, not effect magnitude.
Battery manufacturers serving landscaping equipment, Diesel landscaping-equipment suppliers, Electric landscaping-equipment manufacturers
Positive-direction: Battery manufacturers serving landscaping equipment, Electric landscaping-equipment manufacturers, Landscaping retrofit-kit suppliers
Negative-direction: Diesel landscaping-equipment suppliers, Gasoline landscaping-equipment suppliers
Grounds-maintenance contractors, Landscaping businesses buying electric equipment
Taxpayers documenting product identifiers, Taxpayers transferring equipment credits
Federal business-income-tax accounts, IRS investment-credit administrators
Applicable entities using direct payment
Bill Structure & Actor Mappings
Who is "The Secretary" in each section?
- "claimant"
- → Taxpayer placing qualifying landscaping equipment in service
- "transferee"
- → Eligible purchaser of a transferred tax credit
- "manufacturer"
- → Producer of qualifying electric equipment or components
- "administrator"
- → Secretary of the Treasury
Note: {'scope_ids': ['zero_emission_landscaping_credit'], 'description': 'The credit generally cannot overlap another deduction or credit for the same property, but specified bonus depreciation remains available and covered bankruptcy or dissolution avoids recapture.'}
Key Definitions
Terms defined in this bill
A $25,000 annual cap and a $100,000 aggregate cap across any consecutive ten-year period.
No credit for property placed in service during a taxable year beginning after the date five years after enactment.
Primarily landscaping equipment powered by an eligible electric or Treasury-approved zero-emission source, plus qualifying charging generators, separate batteries, and retrofit property.
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