Sponsor
Ritchie Torres
Representative · D-NY
Representative · D-NY
The bill helps small restaurants pay for PM2.5 emission controls—improving local air quality and providing tax and accounting incentives—while imposing federal fiscal costs and designing limits (nonrefundability, basis reduction, narrow eligibility, and anti‑stacking rules) that reduce benefits for unprofitable operators and some sources of pollution.
Small restaurant owners receive a direct tax credit (roughly 10–35% of equipment cost, with an extra 10–15 percentage points for restaurants in historic buildings) that substantially lowers the out‑of‑pocket cost of installing PM2.5 emission control devices and targets assistance to smaller operators who otherwise might not afford upgrades.
Classifying installed PM2.5 control devices as 7‑year depreciable property accelerates tax depreciation, improving near‑term cash flow for businesses that invest in emissions controls and making upfront investment more affordable.
Installation of PM2.5 control devices (for wood/anthracite stoves and char broilers) reduces fine particulate emissions, improving local air quality and public health in affected communities.
Taxpayers bear the fiscal cost of the new credit, which could increase federal outlays and create budgetary pressure or crowd out other spending priorities if uptake is broad.
Because the credit is nonrefundable, loss‑making or very low‑income restaurants with little or no tax liability may get little or no immediate benefit, limiting effectiveness for the smallest or struggling operators.
Claiming the credit requires reducing the property's tax basis by the credit amount, which lowers future depreciation deductions and can offset some long‑term tax benefits from the investment.
Based on analysis of 2 sections of legislative text.
Creates a tiered, nonrefundable tax credit for small restaurants that install PM2.5 emissions control devices on certain wood- or anthracite-coal cook stoves and char broilers, with boosts for historic buildings.
Official title: To amend the Internal Revenue Code of 1986 to allow a credit against tax for expenses relating to the purchase and installation of qualified emissions control devices on or in connection with qualified cook stoves or qualified char broilers of eligible small restaurant businesses, and for other purposes.
Introduced July 17, 2025 by Ritchie Torres · Last progress July 17, 2025
Creates a new nonrefundable tax credit for small restaurant businesses that purchase and install emissions control devices on qualified wood- or anthracite-coal-fired cook stoves and char broilers. The credit is tiered by total project cost (10% up to $30,000 up to 35% over $150,000) and increases by 10–15 percentage points for installations in eligible historical buildings; it is added to the general business credit and the devices are treated as seven-year depreciable property. The tax changes apply to taxable years beginning one year after enactment.