H.R.3166 - Local Food Recycling and Regenerative Opportunities Act (119th Congress)
Summary
H.R.3166, the Local Food Recycling and Regenerative Opportunities Act, proposes a tax credit for individuals who purchase qualified residential food recycling appliances or utilize qualified residential organic waste services. The credit is designed to incentivize the diversion of wasted food from landfills. The bill amends the Internal Revenue Code of 1986 to include this new tax credit, which would be available for expenses incurred until December 31, 2031.
Expected Effects
If enacted, this bill would likely increase the adoption of residential food recycling appliances and organic waste services. This could lead to a reduction in landfill waste and potentially support local waste management initiatives. The tax credit may also stimulate demand for these products and services.
Potential Benefits
- Encourages environmentally friendly practices by reducing food waste in landfills.
- Provides a financial incentive for individuals to adopt sustainable waste management solutions.
- Could stimulate the market for residential food recycling appliances and organic waste services, potentially leading to innovation and job creation in those sectors.
- May reduce the burden on municipal waste management systems.
- Supports local management of organic waste.
Potential Disadvantages
- The tax credit could create a new avenue for tax fraud or abuse.
- The cost of the tax credit could increase the national debt if not offset by other revenue increases or spending cuts.
- The limitations on the credit amount ($300 for appliances, $120 for services) may not be sufficient to incentivize widespread adoption.
- The definition of 'qualified' appliances and services may be subject to interpretation and require further regulatory clarification.
- The benefits may disproportionately accrue to higher-income individuals who are more likely to afford these appliances and services.
Most Disadvantaged Areas:
Constitutional Alignment
The bill appears to align with the general welfare clause of the Constitution (Preamble). Congress has broad authority to tax and spend for the general welfare of the United States. The bill's use of tax credits to incentivize environmentally beneficial behavior falls within this purview. Article I, Section 8, Clause 1 grants Congress the power to lay and collect taxes, duties, imposts and excises, to pay the debts and provide for the common defense and general welfare of the United States.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).