Promoting Reduction of Emissions through Landscaping Equipment Act
Sponsored By: Representative Correa, J. Luis [D-CA-46]
Introduced
Summary
This bill would create a new 40% tax credit for businesses that buy or retrofit zero-emission electric lawn, garden, and landscape equipment. It pairs generous equipment support with annual and decade caps and allows cash-out or transfers of the credit.
Show full summary
- Businesses: Qualifying businesses could claim a credit equal to 40% of the equipment basis, subject to a $25,000 annual cap and a $100,000 aggregate cap over any consecutive 10-year period. This applies to equipment placed in service after December 31, 2024.
- Equipment makers and service providers: "Zero-emission" equipment must be used primarily for lawn, garden, or landscaping work and be powered by solar, chargeable or replaceable batteries, fuel cells, grid electricity, or other Secretary-approved zero-emission sources. The bill also covers zero-emission generators used to charge equipment, batteries used to operate equipment, and property used to retrofit existing equipment. Product identification rules apply for equipment placed in service after December 31, 2025.
- Tax administration and limits: The bill bars claiming the 48F credit for property already getting another Code credit or deduction, with a narrow depreciation-related exception. It adds elective payment (cash-out) and transfer options and limits recapture in certain bankruptcy or dissolution scenarios.
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Bill Overview
Analyzed Economic Effects
2 provisions identified: 1 benefits, 0 costs, 1 mixed.
Tax credit for electric landscaping equipment
If enacted, the bill would create a new business tax credit for zero-emission electric lawn, garden, and landscape equipment. The credit would equal 40% of the equipment cost but could not exceed $25,000 in any one year and could not exceed $100,000 total across any consecutive 10-year period. Qualifying gear would be mainly for landscaping and powered by solar, chargeable or replaceable batteries, fuel cells, grid electricity, or other zero-emission sources the Secretary allows. Equipment powered by gasoline or diesel generators or only by manual effort would not qualify. Separate batteries, zero-emission generators used to charge equipment, and retrofits that remove emissions would qualify. The credit would apply to property placed in service after December 31, 2024, and would generally end for property placed in service more than five years after the bill becomes law. The bill would deny the credit if the same property already gets another deduction or credit under the tax code, with a narrow exception for certain section 167(a)/168(k) deductions. The bill would also add technical rules so the new credit fits existing tax basis and general business credit computations.
Sell or cash landscaping tax credit
If enacted, taxpayers eligible for the new landscaping equipment credit would be able to transfer (sell) that credit under existing transfer rules. They could also elect a direct payment in lieu of claiming the credit under the existing elective payment rules. These options would let taxpayers get cash for the credit sooner, but they would not change the credit's $25,000 yearly cap or $100,000 aggregate 10-year cap.
Sponsors & CoSponsors
Sponsor
Correa, J. Luis [D-CA-46]
CA • D
Cosponsors
Rep. Castor, Kathy [D-FL-14]
FL • D
Sponsored 3/5/2026
Rep. Davids, Sharice [D-KS-3]
KS • D
Sponsored 3/5/2026
McCollum
MN • D
Sponsored 3/5/2026
Rep. Tlaib, Rashida [D-MI-12]
MI • D
Sponsored 3/5/2026
Del. Norton, Eleanor Holmes [D-DC-At Large]
DC • D
Sponsored 3/5/2026
Lofgren
CA • D
Sponsored 4/21/2026
Rep. Brownley, Julia [D-CA-26]
CA • D
Sponsored 4/21/2026
Grijalva
AZ • D
Sponsored 4/21/2026
Rep. Carter, Troy A. [D-LA-2]
LA • D
Sponsored 4/27/2026
Roll Call Votes
No roll call votes available for this bill.
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