Promoting Reduction of Emissions through Landscaping Equipment Act
- Bill Number
- H.R. 7821
- Origin Chamber
- House
- Congress
- 119th Congress, Session 2
- Policy Area
- Taxation
- Status
- Introduced
- Latest Action
- 2026-03-05: Referred to the House Committee on Ways and Means.
- Last Updated
- 2026-04-28T08:06:23Z
AI-Generated Summary
Purpose
The legislation, titled the "Promoting Reduction of Emissions through Landscaping Equipment Act," aims to encourage businesses to adopt environmentally friendly equipment by providing a tax incentive. It seeks to reduce emissions from traditional gas-powered lawn, garden, and landscaping tools by promoting zero-emission electric alternatives.
Key Provisions
- Tax Credit Amount and Eligibility: Businesses can claim a tax credit equal to 40% of the cost (known as the "basis") of qualifying zero-emission electric lawn, garden, and landscape equipment placed in service during the tax year. This credit is part of the general business credit under the Internal Revenue Code (IRC).
- Limitations on Credit:
- Annual cap: $25,000 per tax year.
- Aggregate cap: $100,000 over any 10-year period.
- Definition of Qualifying Equipment: Includes:
- Tools primarily used for lawn, garden, or landscaping that run on electric motors powered by sources like solar, rechargeable batteries, fuel cells, or grid electricity (or other zero-emission sources approved by the Treasury Secretary).
- Excludes equipment powered by gasoline/diesel generators or solely by manual effort.
- Also covers zero-emission chargers, separate batteries for such equipment, and parts to retrofit existing tools to make them emission-free.
- Administration and Rules:
- The Treasury Secretary can consult the Department of Energy to identify additional zero-emission power sources.
- After December 31, 2025, equipment must have a product identification number (similar to energy-efficient home improvement credits) to qualify.
- No "double benefit": The credit cannot be claimed if the equipment qualifies for other tax deductions or credits (except for certain depreciation allowances under IRC sections 167 and 168).
- No recapture (requiring repayment) of the credit if the equipment is disposed of due to business bankruptcy, dissolution, or similar circumstances prescribed by regulations.
- Additional Options:
- Businesses can elect to receive the credit as a direct payment from the government (under IRC section 6417) or transfer it to another party (under IRC section 6418), which is useful for entities with low tax liability.
- Duration: The credit applies to equipment placed in service after December 31, 2024, but ends for property placed in service more than 5 years after enactment.
- Technical Amendments: Adds the new credit (section 48F) to the IRC's list of business credits and adjusts related sections to prevent overlaps.
Significant Changes to Existing Law
- Introduces a new IRC section 48F, modeled after other clean energy credits (like those for solar or electric vehicles), expanding business incentives to landscaping equipment.
- Integrates the credit into existing frameworks for elective payments and transfers, allowing more flexibility than traditional credits that only reduce tax owed.
- Adds conforming changes to IRC sections 46 and 49 to include this credit in the general business credit rules and adjust basis calculations for investment tax credits.
Potential Impacts
- On Government Agencies: The Internal Revenue Service (IRS) will need to administer the credit, including verifying eligibility and handling direct payments/transfers, potentially increasing administrative workload and federal revenue loss (estimated cost not specified in the bill).
- On Citizens and Businesses: Landscaping businesses and related firms gain tax savings, making it cheaper to switch to electric tools, which could lower operational costs over time. Individual citizens may indirectly benefit from reduced local air pollution and noise from landscaping activities.
- Environmental and Broader Effects: Promotes lower greenhouse gas emissions from small engines (a notable source of pollution), supporting U.S. climate goals without direct international implications.
- No evident impacts on international relations, as the bill focuses on domestic tax policy.
Main Stakeholders Affected
- Businesses: Primarily landscaping, lawn care, and garden service companies that purchase equipment; they benefit from the credit but face caps on amounts.
- Manufacturers and Suppliers: Producers of electric tools, batteries, chargers, and retrofit kits may see increased demand.
- Government: Treasury Department and IRS for implementation; Department of Energy for advisory input.
- Environment and Public: Indirect beneficiaries through reduced emissions, particularly in urban and suburban areas with heavy landscaping use.
- Taxpayers Generally: Potential offset to federal revenue, possibly affecting broader tax policies.
Notable Legal, Constitutional, or Political Implications
- Legal: Relies on Congress's authority under the Constitution to levy taxes and provide incentives (Article I, Section 8). The bill's rules prevent abuse (e.g., double benefits, recapture exceptions) and ensure enforceability through IRS regulations, but could lead to disputes over what qualifies as "zero-emission."
- Constitutional: Aligns with established tax credit precedents for energy efficiency, without raising separation-of-powers issues.
- Political: Advances environmental policy through economic incentives rather than mandates, potentially appealing across party lines by supporting small businesses and green innovation. As an amendment to the IRC, it fits into ongoing debates on tax expenditures for climate action, with a limited scope and sunset clause to control costs.
This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.
Sponsor
Rep. Correa, J. Luis [D-CA-46]
Cosponsors (9)
Rep. Castor, Kathy [D-FL-14], Rep. Davids, Sharice [D-KS-3], Rep. McCollum, Betty [D-MN-4], Rep. Tlaib, Rashida [D-MI-12], Del. Norton, Eleanor Holmes [D-DC-At Large], Rep. Lofgren, Zoe [D-CA-18], Rep. Brownley, Julia [D-CA-26], Rep. Grijalva, Adelita S. [D-AZ-7], Rep. Carter, Troy A. [D-LA-2]
Recent Actions
- 2026-03-05: Referred to the House Committee on Ways and Means.
- 2026-03-05: Introduced in House
- 2026-03-05: Introduced in House
Bill Versions
- Promoting Reduction of Emissions through Landscaping Equipment Act — issued 2026-03-05 — PDF (7 pages)