Sponsors (10)
The bill makes zero‑emission lawn and landscape equipment substantially cheaper and more accessible—especially for homeowners and small businesses—while limitations (caps, nonrefundable treatment, anti‑stacking rules and a five‑year sunset) leave gaps for large purchasers and some low‑income or tax‑exempt beneficiaries.
Homeowners and small-business owners receive a 40% tax credit (capped at $25,000/year and $100,000 per 10 years) for qualifying zero-emission lawn and landscape equipment, substantially lowering upfront purchase costs and encouraging adoption.
Taxpayers who lack immediate tax liability (including low‑income filers, nonprofits, or small operators) can access the value of the credit through elective payment or transferability, improving practical access to the incentive.
Small-business owners and homeowners who switch to eligible electric equipment (and related batteries or generators) can reduce operating emissions and often lower fuel and maintenance costs, improving local air quality and ongoing expenses.
Taxpayers (especially businesses with large fleets or high equipment needs) face strict monetary limits—the credit is capped at $25,000 per year and $100,000 per 10 years—so sizable purchases or full fleet electrification may remain largely unsubsidized.
The credit is nonrefundable, so filers with little or no tax liability may not fully benefit even with elective payment or transfer options, leaving low‑income individuals and some small operators with limited help.
The credit sunsets five years after enactment, creating uncertainty for long-term capital planning and discouraging multi-year fleet electrification strategies for businesses and municipalities.
Based on analysis of 4 sections of legislative text.
Creates a temporary 40% tax credit (up to $25k/year, $100k/10 years) for qualifying zero-emission lawn, garden, and landscape equipment and related batteries/chargers.
Introduced March 5, 2026 by Jose Luis Correa · Last progress March 5, 2026
Creates a new, temporary tax credit covering 40% of the cost of qualifying zero-emission lawn, garden, and landscaping equipment placed in service by a taxpayer. The credit is capped at $25,000 per taxable year and $100,000 per taxpayer per any consecutive 10-year period, can be claimed as an elective direct payment or transferred, and applies to purchases and certain retrofits placed in service after Dec. 31, 2024; the new tax credit program terminates five years after enactment.