Summary

Creates a new nonrefundable tax credit equal to 30% of the cost of qualifying home food-recycling appliances and of qualifying local residential organic waste collection services. The credit is capped at $300 per eligible appliance and $120 total for services, disallows other tax benefits for the same expense, applies for tax years beginning after December 31, 2025, and sunsets for property or services placed in service or acquired after December 31, 2031.

Key Points

• Establishes a new nonrefundable individual tax credit equal to 30% of qualifying costs for home food-recycling appliances and residential organic waste collection services.
• Credit limits: $300 maximum per eligible appliance and $120 maximum total for eligible residential organic waste collection services.
• Expenses claimed under this credit cannot be claimed under other federal tax credits or deductions for the same appliance or service.
• Applies to taxable years beginning after December 31, 2025, and excludes property/services placed in service or acquired after December 31, 2031.
• Targets residential taxpayers who buy eligible appliances or pay for local curbside/collection organics services.
• Requires IRS rules/guidance to define eligible appliances and qualifying collection services and to outline documentation requirements.
• Does not directly authorize appropriations or create new federal spending programs; it modifies the tax code.
• Designed to encourage adoption of household food-recycling technology and participation in residential organics collection to reduce landfill organic waste.

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