I 111th CONGRESS 1st Session H. R. 2158 IN THE HOUSE OF REPRESENTATIVES April 28, 2009 Mr. Welch 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 provide a Federal income tax credit for the purchase of certain nonroad equipment with alternative power sources.

1.

Credit for certain nonroad equipment

(a)

Allowance of credit

Subpart A of part IV of subchapter A of chapter 1 of the Internal Revenue Code of 1986 (relating to nonrefundable personal credits) is amended by inserting after section 25D the following new section:

25E.

Credit for certain nonroad equipment

(a)

Allowance of credit

In the case of an individual, there shall be allowed as a credit against the tax imposed by this chapter an amount equal to 25 percent of the qualified nonroad equipment expenses for the taxable year. (b)

Limitation

The credit allowed under subsection (a) shall not exceed $1,000 per each alternative power nonroad equipment placed in service by the taxpayer. (c)

Qualified Nonroad Equipment Expenses

For purposes of this section— (1)

In general

The term qualified nonroad equipment expenses means the cost of any alternative power nonroad equipment the original use of which commences with the taxpayer and which is placed in service by the taxpayer during the taxable year. (2)

Alternative power nonroad equipment

The term alternative power nonroad equipment means lawn, garden, or forestry power equipment that— (A)is powered by a motor drawing current from solar, electricity, or rechargeable or replacement batteries, (B)has a hybrid-electric drive train or cutting system powered by a generator or electrical storage device combined with a small engine, or (C)is powered by alternative power sources, and— (i)is regulated by the Environmental Protection Agency as a new, spark-ignition engine under part 1054 of title 40, Code of Federal Regulations (or any successor regulation), and (ii)is certified by the Environmental Protection Agency as having an engine family that emits half as many grams per kilowatt-hour of regulated pollutants as is allowable under Phase 3 of the exhaust emissions standards in section 103 of part 1054 of title 40, Code of Federal Regulations (or any successor regulation) for handheld engines and section 105 of that same part for nonhandheld engines, by the applicable engine class. (3)

Alternative power sources

The term alternative power sources means any alternative fuel as determined by the Secretary, in coordination with the Office of Energy Efficiency and Renewable Energy.

. (b)

Clerical amendment

The table of sections for subpart A of part IV of subchapter A of chapter 1 of the Internal Revenue Code of 1986 is amended by inserting after the item relating to section 25D the following new item: Sec. 25E. Credit for certain nonroad equipment. . (c)

Effective date

The amendments made by this section shall apply to amounts paid or incurred after the date of the enactment of this Act.