119-HR3166

Bill is currently in: House
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House Senate President

119th CONGRESS

1st Session

H. R. 3166

1. Short title
2. Tax credit for diversion of wasted food

1. Short title

This Act may be cited as the "Local Food Recycling and Regenerative Opportunities Act".

2. Tax credit for diversion of wasted food

(a) In general - Subpart A of part IV of subchapter A of chapter 1 of the Internal Revenue Code of 1986 is amended by inserting after section 25E the following new section:

25F. Credit for diversion of wasted food

(a) Allowance of credit - In the case of an individual, there shall be allowed as a credit against the tax imposed by this chapter for the taxable year an amount equal to 30 percent of the sum of—

(1) - the amount paid or incurred by the taxpayer for any qualified residential food recycling appliance placed in service during such taxable year, and

(2) - the amount paid or incurred by the taxpayer during such taxable year for qualified residential organic waste services.

(b) Limitations -

(1) Qualified residential food recycling appliances - The credit allowed under this section by reason of subsection (a)(1) with respect to any taxpayer for any taxable year shall not exceed, with respect to any qualified residential food recycling appliance, $300.

(2) Qualified residential organic waste services - The credit allowed under this section by reason of subsection (a)(2) with respect to any taxpayer for any taxable year shall not exceed, in the aggregate with respect to all qualified residential organic waste services, $120.

(c) Denial of double benefit - In the case of any qualified residential food recycling appliance expenses, or any qualified residential organic waste service expenses, with respect to which credit is allowed under subsection (a)—

(1) - no deduction or credit shall be allowed for, or by reason of, any such expense to the extent of the amount of such credit, and

(2) - the basis of any property shall be reduced by the amount of such credit to the extent that such expenses were taken into account in determining such basis.

(d) Definitions - For purposes of this section—

(1) Qualified residential food recycling appliance - The term "qualified residential food recycling appliance" means any electric appliance that—

(A) - is originally placed in service by the taxpayer in a dwelling unit located in the United States and used as the taxpayer’s principal residence (within the meaning of section 121),

(B) - facilitates the source separation from the trash of food waste, including inedible and uneaten food, generated in such dwelling unit, and

(C) - pre-processes such waste through dehydration and size-reduction for purposes of diverting such waste from landfills.

(2) Qualified residential organic waste service - The term "qualified residential organic waste service" means any service to collect locally generated organic waste, including food waste that is pre-processed by a qualified residential food recycling appliance, from a dwelling unit located in the United States and used as the taxpayer’s principal residence (within the meaning of section 121) for purposes of local management and diversion from landfills.

(e) Termination - No credit shall be allowed under this section with respect to any qualified residential food recycling appliance placed in service, or any qualified residential organic waste service acquired, after December 31, 2031.

(b) Clerical amendment - The table of sections for subpart A of part IV of subchapter A of chapter 1 of such Code is amended by inserting after the item relating to section 25E the following new item:

(c) Effective date - The amendments made by this section shall apply to taxable years beginning after December 31, 2025.