Local Food Recycling and Regenerative Opportunities Act

Bill Number: H.R. 3166
Origin Chamber: House
Congress: 119th Congress, Session 1
Policy Area: Taxation
Status: Introduced
Latest Action: 2025-05-01: Referred to the House Committee on Ways and Means.
Last Updated: 2026-06-25T08:07:47Z

AI-Generated Summary

Purpose

The Local Food Recycling and Regenerative Opportunities Act (H.R. 3166) aims to encourage households to reduce food waste by providing tax incentives for purchasing appliances that process food scraps and for using services that collect and divert organic waste from landfills. This supports environmental goals like reducing landfill use and promoting sustainable waste management at the local level.

Key Provisions

Tax Credit Introduction: Adds a new Section 25F to the Internal Revenue Code (IRC), offering individuals a non-refundable tax credit equal to 30% of qualified expenses incurred in a taxable year.
Covers costs for "qualified residential food recycling appliances" (e.g., electric devices that separate food waste from trash, dehydrate it, and reduce its size for easier diversion).
Also covers costs for "qualified residential organic waste services" (e.g., local collection of pre-processed food waste from homes for composting or other non-landfill uses).
Limitations on Credit:
Maximum of $300 per qualified appliance.
Maximum of $120 per year, in total, for all qualified services.
Eligibility Requirements:
Appliances must be new, installed in the taxpayer's principal residence (a home where they live most of the time, as defined under IRC Section 121) in the U.S.
Services must handle waste from such residences and focus on local diversion from landfills.
Rules to Prevent Double Benefits: Any expenses claiming this credit cannot also qualify for deductions or other credits; the cost basis of the appliance is reduced by the credit amount.
Duration and Start Date: The credit applies to appliances placed in service or services acquired from January 1, 2026, through December 31, 2031 (ends after that date).
Administrative Details: The bill was introduced on May 1, 2025, by Rep. Strickland and Rep. Newhouse, and referred to the House Committee on Ways and Means.

Significant Changes to Existing Law

Inserts a new tax credit (Section 25F) into the IRC's subpart on non-refundable personal tax credits, following Section 25E (which covers other residential energy credits).
This is the first federal tax incentive specifically targeted at residential food waste diversion, expanding beyond existing credits for energy-efficient appliances to include waste-processing technology.
Updates the IRC's table of sections to include the new provision.

Potential Impacts

On Citizens: Provides modest financial relief (up to $420 total per year in credits) to homeowners adopting food waste reduction tools, potentially lowering household waste disposal costs and encouraging eco-friendly habits. It may increase upfront costs for appliances but offset them partially through taxes.
On Government Agencies: The IRS will need to administer the credit, including verifying eligibility and handling claims, which could add minor administrative workload. The U.S. Treasury may see reduced tax revenue (estimated low due to caps and individual focus), but it supports broader federal environmental policies on waste reduction.
On International Relations: Minimal direct impact, though it aligns with global sustainability efforts (e.g., UN goals on food waste), potentially enhancing U.S. leadership in green innovation without affecting trade or foreign policy.
Broader Effects: Could reduce landfill methane emissions (a greenhouse gas from decomposing food), benefiting public health and the environment; may indirectly lower municipal waste management costs.

Main Stakeholders Affected

Individual Taxpayers: Primarily homeowners in single-family or qualifying dwelling units who generate food waste and seek to divert it.
Appliance Manufacturers and Retailers: Companies producing electric food dehydrators or grinders may see increased demand due to the incentive.
Waste Management and Service Providers: Local firms offering organic waste collection (e.g., for composting) could gain more residential customers.
Environmental and Community Groups: Organizations focused on sustainability, zero-waste initiatives, or urban farming may benefit from wider adoption.
Government: IRS and Treasury for implementation; local governments for reduced landfill burdens.

Notable Legal, Constitutional, or Political Implications

Legal: The credit is straightforward and fits within Congress's authority to amend tax law (Article I, Section 8 of the U.S. Constitution). It avoids complexity by using existing IRC definitions (e.g., principal residence) and includes safeguards against abuse via double-benefit rules. Potential for IRS guidance or regulations to clarify "pre-processing" or service qualifications.
Constitutional: No apparent issues; it promotes general welfare through environmental incentives without infringing on states' rights or equal protection, as it's available uniformly to qualifying U.S. residents.
Political: Bipartisan sponsorship (Democrat and Republican) signals cross-aisle support for practical environmental measures. It has a limited fiscal footprint (capped credits), making it appealing for budget-conscious lawmakers, but could face debate over extending beyond 2031 or expanding to businesses. Aligns with national priorities like climate action but remains narrowly focused on residential incentives rather than sweeping reform.

This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.

Sponsor

Rep. Strickland, Marilyn [D-WA-10]

Cosponsors (3)

Rep. Newhouse, Dan [R-WA-4], Rep. Mullin, Kevin [D-CA-15], Rep. Budzinski, Nikki [D-IL-13]

Recent Actions

2025-05-01: Referred to the House Committee on Ways and Means.
2025-05-01: Introduced in House
2025-05-01: Introduced in House

Bill Versions

Local Food Recycling and Regenerative Opportunities Act — issued 2025-05-01 — PDF (5 pages)