CHEFS Act
Sponsored By: Representative Torres, Ritchie [D-NY-15]
Introduced
Summary
A tax credit for small restaurants to install emissions-control devices on wood-fired stoves and char broilers. This bill would create a tiered, nonrefundable business credit to cover part of the cost to buy and install equipment that traps PM2.5 fine particles.
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- Small restaurants would get a tax credit equal to a tiered percentage of the cost to buy and install qualified emissions control devices on qualified cook stoves or qualified char broilers. The credit ranges from about 10% up to 35% depending on total cost.
- Owners of eligible historical buildings would see a larger credit when the building is at least 50 years old.
- The credit cannot be claimed alongside another credit or a deduction for the same expense, and the tax basis of related property is reduced by the credit amount.
- Qualified emissions control devices are treated as 3-year property for depreciation.
- "Eligible small restaurant business" follows the restaurant NAICS code size standard set by the Small Business Administration.
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Bill Overview
Analyzed Economic Effects
3 provisions identified: 2 benefits, 1 costs, 0 mixed.
Faster depreciation for restaurant devices
Qualified emissions control devices would be depreciated over three years. This would speed up your deductions and improve early cash flow. It would apply only to devices that meet the bill’s definition. The change would start for tax years that begin one year after enactment.
Tax credit for restaurant emissions devices
This bill would create a nonrefundable tax credit for small restaurants that install qualifying emissions control devices. The credit would cover a share of the total buy-and-install cost: 10% up to $30,000; 15% over $30,000–$60,000; 20% over $60,000–$90,000; 25% over $90,000–$120,000; 30% over $120,000–$150,000; and 35% over $150,000. If your restaurant is in a historic building, the credit would rise by 10 points if the building is 50–100 years old, or 15 points if over 100 years old. You must use a qualifying wood- or anthracite-fired cook stove or a qualified char broiler and meet SBA size rules. The credit would be part of the general business credit, so normal limits and carryforwards would apply. It would start for tax years that begin one year after enactment.
No double dipping on device costs
If you claim the emissions device credit, you would not also be able to deduct or claim another credit for the same costs. You would have to reduce the property's tax basis by the credit amount. This would lower future depreciation and could change gain if you sell the equipment. These rules would apply starting with tax years that begin one year after enactment.
Sponsors & CoSponsors
Sponsor
Torres, Ritchie [D-NY-15]
NY • D
Cosponsors
There are no cosponsors for this bill.
Roll Call Votes
No roll call votes available for this bill.
View on Congress.gov