Promoting Reduction of Emissions through Landscaping Equipment Act
- Bill Number
- S. 4021
- Origin Chamber
- Senate
- Congress
- 119th Congress, Session 2
- Policy Area
- Taxation
- Status
- Introduced
- Latest Action
- 2026-03-05: Read twice and referred to the Committee on Finance.
- Last Updated
- 2026-03-24T01:40:24Z
AI-Generated Summary
Purpose
The Promoting Reduction of Emissions through Landscaping Equipment Act (S. 4021) aims to encourage businesses to reduce environmental pollution by providing a tax incentive for purchasing zero-emission electric equipment used in lawn, garden, and landscaping activities. It promotes the shift from gasoline or diesel-powered tools to cleaner electric alternatives, thereby lowering emissions from these sources.
Key Provisions
- Tax Credit Details: Businesses can claim a 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.
- Annual cap: $25,000 per year.
- Overall cap: $100,000 across any 10-year period.
- Qualifying Equipment Definition: Includes:
- Tools primarily for lawn, garden, or landscaping (e.g., mowers, trimmers) powered by electric motors using solar power, rechargeable batteries, fuel cells, grid electricity, or other zero-emission sources approved by the Treasury Secretary (in consultation with the Department of Energy).
- Excludes equipment powered by gasoline/diesel generators or manual effort only.
- Also covers zero-emission chargers, separate batteries for such tools, and retrofit kits to convert existing equipment to zero-emission operation.
- Additional Rules:
- Requires a product identification number for equipment placed in service after December 31, 2025 (similar to energy-efficient home improvement credits).
- Prevents "double dipping" by denying the credit if another tax deduction or credit applies to the same property (with an exception for standard depreciation deductions on new assets).
- Waives recapture of the credit (i.e., no repayment required) if the equipment is disposed of due to business bankruptcy, dissolution, or similar events prescribed by regulations.
- The credit expires for equipment placed in service more than 5 years after the law's enactment.
- Flexibility Options: Businesses can elect direct payment of the credit (instead of reducing taxes owed) or transfer it to another entity for cash.
- Effective Date: Applies to equipment placed in service after December 31, 2024.
Significant Changes to Existing Law
- Adds a new section (48F) to the Internal Revenue Code (IRC) under investment tax credits, integrating it with existing clean energy incentives (e.g., alongside sections 48C for advanced manufacturing and 48E for clean electricity).
- Amends IRC sections 46, 49, 6417, and 6418 to include this credit in lists of eligible incentives, allowing for elective payments and transfers, and adjusting basis calculations for depreciation.
- Inserts a new entry in the IRC's table of sections for easy reference.
These changes expand the federal tax code's clean energy provisions to specifically target landscaping equipment, which was not previously covered by similar business credits.
Potential Impacts
- On Government Agencies: The Internal Revenue Service (IRS) will need to administer the credit, including verifying eligibility, product IDs, and caps, potentially increasing workload and requiring new guidance or regulations. The Treasury Department and Department of Energy may collaborate on defining zero-emission sources, adding minor coordination efforts. Overall, this could lead to reduced tax revenue (estimated fiscal cost not specified in the bill) due to credits claimed.
- On Citizens and Businesses: Encourages adoption of electric landscaping tools, potentially lowering operational costs for businesses over time through efficiency gains and reduced fuel expenses, while improving local air quality by cutting emissions from small engines (a notable source of urban pollution). Individual citizens may benefit indirectly from cleaner environments in parks, neighborhoods, and public spaces.
- On International Relations: No direct impacts; the bill focuses on domestic tax policy and U.S. environmental goals without referencing foreign trade, imports, or global agreements.
Main Stakeholders Affected
- Businesses: Primarily landscaping companies, golf courses, parks departments, and other firms using lawn and garden equipment, who can directly claim the credit to offset purchase costs.
- Manufacturers and Suppliers: Producers of electric tools, batteries, chargers, and retrofit kits, who may see increased demand and sales.
- Government and Taxpayers: Federal agencies like the IRS and Treasury for implementation; general taxpayers bear the indirect cost through forgone revenue.
- Environmental Groups and Communities: Benefit from reduced emissions, particularly in areas with heavy landscaping activity.
Notable Legal, Constitutional, or Political Implications
- Legal: The bill aligns with existing IRC frameworks for energy credits, ensuring consistency without creating conflicts. It delegates authority to the Treasury Secretary for regulations on alternative power sources and exceptions, which could lead to future administrative challenges if not clearly defined. The no-recapture provision in bankruptcy cases provides business-friendly relief but may require IRS rulemaking to prevent abuse.
- Constitutional: No apparent issues; tax incentives are a standard congressional power under Article I, and the bill does not infringe on states' rights or individual liberties.
- Political: Supports broader U.S. climate goals (e.g., reducing greenhouse gases from non-road sources) without mandating changes, making it a voluntary incentive. It could appeal across party lines by aiding small businesses and local environments, though critics might highlight the fiscal cost amid budget debates. The 5-year sunset clause allows for future evaluation and renewal based on effectiveness.
This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.
Sponsor
Cosponsors (1)
Recent Actions
- 2026-03-05: Read twice and referred to the Committee on Finance.
- 2026-03-05: Introduced in Senate
Bill Versions
- Promoting Reduction of Emissions through Landscaping Equipment Act — issued 2026-03-05 — PDF (7 pages)