Local Food Recycling and Regenerative Opportunities Act

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3166 Introduced in House (IH)]

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119th CONGRESS
  1st Session
                                H. R. 3166

 To amend the Internal Revenue Code of 1986 to allow a credit against
  tax for expenses relating to the diversion of wasted food, and for
                            other purposes.

_______________________________________________________________________

                    IN THE HOUSE OF REPRESENTATIVES

                              May 1, 2025

Ms. Strickland (for herself and Mr. Newhouse) introduced the following
      bill; which was referred to the Committee on Ways and Means

_______________________________________________________________________

                                 A BILL

 To amend the Internal Revenue Code of 1986 to allow a credit against
  tax for expenses relating to the diversion of wasted food, and for
                            other purposes.

    Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

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

SEC. 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:

``SEC. 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:

``Sec. 25F. Credit for diversion of wasted food.''.
    (c) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after December 31, 2025.
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