USHB-3166Introduced

Local Food Recycling and Regenerative Opportunities Act

Jurisdiction:: United States (federal)
Type:: Incentives · Organics Diversion
Last action:: May 1, 2025

OrganicsBiobasedAgriculture

Next steps for producers

Review this measure’s obligations and confirm whether they reach your products

Applies toNot applicable — this is a tax credit bill for individual taxpayers, not an EPR/producer responsibility measure

Obligations under this law

·No producer obligations established — the bill creates a personal income tax credit for individual taxpayers who purchase qualifying appliances or services

No designated program action is recorded for this measure yet — treat the above as the general obligation and verify against the source text.

Bill establishes a federal tax credit (30%) for residential food-waste diversion appliances and organic-waste services, directly advancing the biological cycle of circular economy through financial incentives for organics diversion and composting infrastructure adoption.

Covered Products

·Qualified residential food recycling appliances (electric appliances that facilitate source separation and pre-process food waste through dehydration and size-reduction)
·Qualified residential organic waste collection services

Producer Obligations

·No producer obligations established — the bill creates a personal income tax credit for individual taxpayers who purchase qualifying appliances or services

Exemptions

·Appliances not originally placed in service by the taxpayer in a U.S. dwelling unit used as the taxpayer's principal residence are excluded
·Organic waste services not collected from the taxpayer's principal residence in the U.S. are excluded
·No double benefit: no deduction or credit allowed for the same expense to the extent of the credit amount; basis of property reduced by credit amount

Key Deadlines

Jan 1, 2026compliance: Credit applies to taxable years beginning after December 31, 2025

Dec 31, 2031other: Credit termination — no credit allowed for appliances placed in service or organic waste services acquired after December 31, 2031

Producer Definition

Not applicable — this is a tax credit bill for individual taxpayers, not an EPR/producer responsibility measure

Fee Structure

Unknown: No fees established — this bill creates a tax credit, not a fee structure

Enforcement

Internal Revenue Service (IRS) — as the credit is administered under the Internal Revenue Code of 1986: No specific penalties established in this bill; standard IRS tax enforcement applies

Preemption Notes

Federal tax credit bill; does not preempt state or local food waste or EPR laws

Tracking dates like these across a whole portfolio of jurisdictions is what Upcoming Deadlines does.

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Full bill text

I 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. N EWHOUSE) 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 Representa-1 tives of the United States of America in Congress assembled, 2 SECTION 1. SHORT TITLE. 3 This Act may be cited as the ‘‘Local Food Recycling 4 and Regenerative Opportunities Act’’. 5 SEC. 2. TAX CREDIT FOR DIVERSION OF WASTED FOOD. 6 (a) I N GENERAL.—Subpart A of part IV of sub-7 chapter A of chapter 1 of the Internal Revenue Code of 8 VerDate Sep 11 2014 02:55 May 09, 2025 Jkt 059200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\H3166.IH H3166kjohnson on DSK7ZCZBW3PROD with $$_JOB 2 •HR 3166 IH 1986 is amended by inserting after section 25E the fol-1 lowing new section: 2 ‘‘SEC. 25F. CREDIT FOR DIVERSION OF WASTED FOOD. 3 ‘‘(a) ALLOWANCE OF CREDIT.—In the case of an in-4 dividual, there shall be allowed as a credit against the tax 5 imposed by this chapter for the taxable year an amount 6 equal to 30 percent of the sum of— 7 ‘‘(1) the amount paid or incurred by the tax-8 payer for any qualified residential food recycling ap-9 pliance placed in service during such taxable year, 10 and 11 ‘‘(2) the amount paid or incurred by the tax-12 payer during such taxable year for qualified residen-13 tial organic waste services. 14 ‘‘(b) LIMITATIONS.— 15 ‘‘(1) Q UALIFIED RESIDENTIAL FOOD RECY -16 CLING APPLIANCES .—The credit allowed under this 17 section by reason of subsection (a)(1) with respect to 18 any taxpayer for any taxable year shall not exceed, 19 with respect to any qualified residential food recy-20 cling appliance, $300. 21 ‘‘(2) Q UALIFIED RESIDENTIAL ORGANIC WASTE 22 SERVICES.—The credit allowed under this section by 23 reason of subsection (a)(2) with respect to any tax-24 payer for any taxable year shall not exceed, in the 25 VerDate Sep 11 2014 02:55 May 09, 2025 Jkt 059200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\H3166.IH H3166kjohnson on DSK7ZCZBW3PROD with $$_JOB 3 •HR 3166 IH aggregate with respect to all qualified residential or-1 ganic waste services, $120. 2 ‘‘(c) DENIAL OF DOUBLE BENEFIT.—In the case of 3 any qualified residential food recycling appliance expenses, 4 or any qualified residential organic waste service expenses, 5 with respect to which credit is allowed under subsection 6 (a)— 7 ‘‘(1) no deduction or credit shall be allowed for, 8 or by reason of, any such expense to the extent of 9 the amount of such credit, and 10 ‘‘(2) the basis of any property shall be reduced 11 by the amount of such credit to the extent that such 12 expenses were taken into account in determining 13 such basis. 14 ‘‘(d) D EFINITIONS.—For purposes of this section— 15 ‘‘(1) Q UALIFIED RESIDENTIAL FOOD RECY -16 CLING APPLIANCE .—The term ‘qualified residential 17 food recycling appliance’ means any electric appli-18 ance that— 19 ‘‘(A) is originally placed in service by the 20 taxpayer in a dwelling unit located in the 21 United States and used as the taxpayer’s prin-22 cipal residence (within the meaning of section 23 121), 24 VerDate Sep 11 2014 02:55 May 09, 2025 Jkt 059200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\H3166.IH H3166kjohnson on DSK7ZCZBW3PROD with $$_JOB 4 •HR 3166 IH ‘‘(B) facilitates the source separation from 1 the trash of food waste, including inedible and 2 uneaten food, generated in such dwelling unit, 3 and 4 ‘‘(C) pre-processes such waste through de-5 hydration and size-reduction for purposes of di-6 verting such waste from landfills. 7 ‘‘(2) Q UALIFIED RESIDENTIAL ORGANIC WASTE 8 SERVICE.—The term ‘qualified residential organic 9 waste service’ means any service to collect locally 10 generated organic waste, including food waste that is 11 pre-processed by a qualified residential food recy-12 cling appliance, from a dwelling unit located in the 13 United States and used as the taxpayer’s principal 14 residence (within the meaning of section 121) for 15 purposes of local management and diversion from 16 landfills. 17 ‘‘(e) T ERMINATION.—No credit shall be allowed 18 under this section with respect to any qualified residential 19 food recycling appliance placed in service, or any qualified 20 residential organic waste service acquired, after December 21 31, 2031.’’. 22 (b) C LERICAL AMENDMENT.—The table of sections 23 for subpart A of part IV of subchapter A of chapter 1 24 VerDate Sep 11 2014 02:55 May 09, 2025 Jkt 059200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\H3166.IH H3166kjohnson on DSK7ZCZBW3PROD with $$_JOB 5 •HR 3166 IH of such Code is amended by inserting after the item relat-1 ing to section 25E the following new item: 2 ‘‘Sec. 25F. Credit for diversion of wasted food.’’. (c) E FFECTIVE DATE.—The amendments made by 3 this section shall apply to taxable years beginning after 4 December 31, 2025. 5 Æ VerDate Sep 11 2014 02:55 May 09, 2025 Jkt 059200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6301 E:\BILLS\H3166.IH H3166kjohnson on DSK7ZCZBW3PROD with $$_JOB

Full text as ingested · via legiscan. Verify against the official source above.