Bill provides a 40% tax credit on the purchase of zero-emission equipment

Representative Lou Correa (CA-46) recently introduced House Resolution 6013, the Promoting Reduction of Emissions through Landscaping Equipment Act. The bill would create a federal tax credit to assist small businesses, including golf courses in transitioning to zero-emission equipment. 

The bill would be a welcome relief for the golf industry, particularly California, which is facing a ban on the manufacture and sale of new gasoline-powered equipment 25 horsepower and under starting Jan. 1, 2024 (the ban does not apply to the use of current 25 and under horsepower equipment). Golf courses in California are not eligible for a state rebate program that was introduced through AB 1346 (those funds have since been fully allocated).

The legislation would amend the Internal Revenue Code of 1986 to establish a tax credit for local small businesses, including landscaping and lawn care businesses as well as golf courses. Currently, there are over 300 restrictions on gas-powered lawn equipment across the country, as more localities recognize the need to transition to quieter, less polluting zero-emission equipment.

This bill provides a 40 percent credit on the purchase of zero-emission equipment, such as mowers, leaf blowers, hedgers, and accessories up to $25,000 every year and up to $100,000 over 10 consecutive years. The tax credit, which applies to any equipment purchased on or after Jan. 1, 2023, also extends to retrofitting equipment that transforms gas-powered devices to zero-emission.

The bill is expected to face stiff opposition from the Republican House which has not traditionally supported green tax credits. GCSAA, GCSA of Northern California, GCSA of Southern California, the California Alliance for Golf and the California Golf Course Owners Association have all endorsed the legislation. 

GCSAA will continue to work with the office of Representative Correa as well as lobbying Congress on behalf of our members and the industry.  You can find the full text of the legislation here and updates will be available at GCSAA's Advocacy Hub.