Sponsors (2)
The bill makes zero‑emission lawn and landscape equipment substantially more affordable and accessible—including for non‑taxable entities—while trading off limited coverage for large purchasers, added administrative complexity, and a short five‑year window that may blunt long‑term market certainty.
Homeowners and small-business owners can reduce the out‑of‑pocket cost of qualifying zero‑emission lawn and landscape equipment by about 40% (subject to statutory caps), making cleaner equipment substantially more affordable.
Small businesses, nonprofits, and other non‑taxable or low‑income buyers can monetize the benefit because the credit is transferable or electable for payment, increasing access to the incentive for entities that can't fully use tax credits.
Homeowners and small‑business owners can convert existing gas equipment via approved retrofits and receive credit support, enabling cheaper transitions from gas to zero‑emission tools and reducing emissions from current equipment fleets.
Buyers and manufacturers face uncertainty because the credit only applies to property placed in service during a five‑year window before the credit sunsets, which may discourage long‑term investment and slow market adoption.
Large landscaping businesses are limited by a $25,000 annual cap and $100,000 per‑10‑year aggregate cap, reducing the benefit for firms that purchase many qualifying units and limiting economies of scale.
Taxpayers and small businesses that already use other Code deductions or credits may be barred from claiming this credit, complicating tax planning and potentially reducing the net incentive for some purchasers.
Based on analysis of 4 sections of legislative text.
Creates a 40% tax credit for qualifying zero-emission landscaping equipment with $25k annual and $100k per‑10‑year caps; eligible for direct payment or transfer; effective for property placed in service after 12/31/2024.
Introduced March 5, 2026 by Martin Heinrich · Last progress March 5, 2026
Creates a tax credit for zero-emission electric lawn, garden, and landscape equipment equal to 40% of the purchase basis, subject to annual and multi-year caps, with rules to prevent double-dipping and a limited multi-year life. The credit can be elected as a direct payment or transferred, applies to a range of equipment (including batteries, zero-emission generators, and retrofits), and takes effect for property placed in service after December 31, 2024. Limits include a $25,000 cap per taxpayer per year and a $100,000 aggregate cap per taxpayer over any consecutive 10-year period; the program ends for property placed in service more than five years after enactment. The bill also sets product identification/certification rules and allows Treasury to exempt recapture in certain insolvency or dissolution situations.