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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