Sponsors (10)
Establishes a 40% investment tax credit for qualifying zero-emission lawn, garden, and landscape equipment with per-taxpayer annual and decadal caps.
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
The bill offers a large, liquid tax incentive that lowers upfront costs and eases conversion to zero‑emission lawn equipment—helping homeowners and small landscapers and improving local air quality—while creating federal fiscal costs, administrative burdens, a short five‑year sunset, and limits that reduce benefits for larger or off‑grid users.
Homeowners, small landscaping businesses, and other purchasers receive a refundable/transferable 40% tax credit (up to $25,000/year, $100,000 per 10 years) for zero‑emission lawn and landscape equipment, with options for direct payment or transfer to unrelated transferees to increase liquidity for buyers without tax liability.
Communities and individuals who use lawn and landscape equipment (especially homeowners and rural communities) could see reduced local air pollution and lower exposure to combustion emissions as gas-powered equipment is replaced with zero‑emission alternatives.
The credit explicitly covers retrofit kits, standalone batteries, and zero‑emission chargers, making it easier and less costly to convert existing equipment and adopt electrified workflows.
All taxpayers face increased federal tax expenditures to fund the credit, which could raise budgetary pressures and may require offsetting revenues or spending cuts elsewhere.
Buyers and businesses have only a five‑year sunset for new purchases, creating a short implementation window that increases uncertainty for long‑term investment and business planning.
The per‑year ($25,000) and per‑10‑year ($100,000) caps may substantially limit benefits for larger landscaping firms with high equipment needs, reducing the policy's effectiveness for commercial operators.
Based on analysis of 4 sections of legislative text.
Creates a new federal investment tax credit equaling 40% of the basis of qualifying zero-emission electric lawn, garden, and landscape equipment placed in service by a taxpayer, subject to annual and decadal caps. The credit covers battery-, solar-, fuel-cell-, or grid-powered equipment and related batteries, chargers, retrofit property, and qualifying zero-emission generators, denies double benefits with most other tax incentives, is transferable or electively payable, and generally applies to property placed in service after December 31, 2024 with certain product-identification rules taking effect after December 31, 2025. Limits include a $25,000 per-taxpayer annual cap and a $100,000 aggregate cap per rolling 10-year period; the new Code section sunsets for property placed in service more than five years after enactment. The provision includes conformity and administrative rules for claiming and transferring the credit, limited recapture relief in specified dissolution/bankruptcy situations, and technical amendments to related tax-code sections.