H.R. 3166: Local Food Recycling and Regenerative Opportunities Act

This bill, known as the Local Food Recycling and Regenerative Opportunities Act, aims to encourage the diversion of wasted food through tax incentives. It proposes a tax credit for individuals who invest in specific appliances and services that help recycle food waste at the household level.

Tax Credit Overview

Under the proposed legislation, individuals can receive a tax credit equal to 30% of the total costs incurred for:

• Qualified Residential Food Recycling Appliances: Appliances that help separate food waste from regular trash and pre-process it to divert it from landfills.
• Qualified Residential Organic Waste Services: Services that collect organic waste, including food waste, from residences for local processing and diversion from landfills.

Limits on the Credit

The bill sets specific limits for the tax credits:

• The credit for a food recycling appliance is capped at $300.
• The total credit for organic waste services cannot exceed $120.

Conditions for the Tax Credits

To be eligible for these credits, the expenses must not have already been claimed for deduction or any other tax benefit. If they have been, the basis of any property must be adjusted accordingly.

Definitions

The bill also defines key terms:

• Qualified Residential Food Recycling Appliance: An electric appliance used primarily in a taxpayer's principal residence that separates food waste and prepares it for recycling.
• Qualified Residential Organic Waste Service: The service responsible for collecting the organic waste from residences to manage and divert it locally.

Duration of the Credit

The tax credits provided by this bill will not apply to appliances or services acquired after December 31, 2031. The provisions of the act are intended to take effect for tax years starting after December 31, 2025.

Clerical Changes

The bill includes a clerical amendment that adds this new tax credit section to the Internal Revenue Code.

Relevant Companies

None found.