Sponsors (2)
The bill provides a generous upfront tax incentive to help homeowners and landscaping businesses adopt zero-emission lawn equipment and spur related markets, but the benefit is constrained by annual and aggregate caps, a five-year sunset, and added compliance and tax-planning complexity.
Homeowners and small-business owners receive a tax credit equal to 40% of the basis of qualifying zero-emission lawn and landscape equipment (up to $25,000 per year), lowering upfront purchase costs.
Homeowners and rural communities see reduced local air pollution and lower exposure to combustion emissions when gasoline equipment is replaced with zero-emission alternatives.
Commercial landscapers and small businesses can monetize credits through transfers or elective payments when they lack tax liability, improving access to the incentive for tax-exempt or low-liability firms.
Taxpayers face limited long-term support because the credit sunsets after five years and is subject to a $100,000 per-10-year aggregate cap per taxpayer, reducing incentives for long-run fleet conversions.
The $25,000 annual cap may prevent larger landscaping firms from realizing the full 40% benefit in a single year, complicating budgeting and slowing adoption for bigger operators.
Manufacturers and buyers may face increased compliance burdens from product identification number rules and Treasury/DOE processes to define eligible equipment, adding administrative costs and uncertainty.
Based on analysis of 4 sections of legislative text.
Introduced March 5, 2026 by Martin Heinrich · Last progress March 5, 2026
Creates a federal tax credit equal to 40% of the cost of qualifying zero-emission lawn, garden, and landscape equipment, with annual and multi-year caps to limit total benefit. The credit covers new electric or other zero-emission powered equipment, eligible retrofits, and related zero-emission chargers and batteries, applies to property placed in service after Dec 31, 2024, and sunsets after five years. The bill also adds rules to allow electing direct payment or transfer of the credit and includes product identification and anti-double-dipping rules.