Sponsors (11)
The bill makes zero-emission lawn and landscape equipment much more affordable and easier to adopt—cutting costs and local pollution—at the trade-off of a time-limited, capped subsidy that may exclude some off-grid solutions and adds federal cost and compliance burdens.
Homeowners, small landscaping businesses, and other purchasers receive a large purchase subsidy: a 40% tax credit (up to $25,000/year, $100,000 per 10 years) for zero-emission lawn and landscape equipment, substantially lowering upfront costs to buy electric equipment.
Communities and residents who use outdoor power equipment (especially in residential and neighborhood settings) will likely experience reduced local air pollution and lower exposure to combustion emissions as gas-powered equipment is replaced.
Purchasers (homeowners and small businesses) can more easily adopt electrified workflows because the credit covers retrofit kits, standalone batteries, and zero‑emission chargers, making conversion of existing equipment practical.
Purchasers and landscaping businesses face uncertainty because the credit for new purchases sunsets after five years, which could discourage long-term planning and investment in fleet replacements.
Larger landscaping firms with high equipment needs may be constrained because the $25,000 annual and $100,000-per-10-year caps limit the benefit for expensive or large fleets.
The exclusion of equipment that relies on gasoline/diesel generators (e.g., some hybrid or off-grid setups) could leave rural and off-grid users without viable subsidized options and discourage practical hybrid solutions.
Based on analysis of 4 sections of legislative text.
Creates a 40% investment tax credit for qualifying zero-emission lawn, garden, and landscape equipment with per-year and per-10-year caps, product ID rules, transferability, and an elective payment option.
Official title: To amend the Internal Revenue Code of 1986 to establish a business tax credit for the purchase of zero-emission electric lawn, garden, and landscape equipment, and for other purposes.
Introduced March 5, 2026 by Jose Luis Correa · Last progress March 5, 2026
Creates a new federal investment tax credit equal to 40% of the basis of qualifying zero-emission electric lawn, garden, and landscape equipment placed in service. The credit is nonrefundable, subject to a $25,000 annual cap and a $100,000 aggregate cap per consecutive 10-year period, and includes rules for product identification, transferability, and elective payment. The credit covers battery-, solar-, fuel cell-, or grid-powered zero-emission equipment and related batteries, zero-emission generators used to charge equipment, retrofit property to eliminate emissions, and standalone batteries; it excludes gasoline- or diesel-generator-powered gear and manually powered tools. The credit generally applies to property placed in service after Dec 31, 2024, with product ID rules applying to property placed in service after Dec 31, 2025, and sunsets for property placed in service more than five years after enactment.