Credit for qualified nonroad equipment

(a)

Allowance of credit

Subpart B of part IV of subchapter A of chapter 1 of the Internal Revenue Code of 1986 is amended by inserting after section 30D the following new section:

30E.

Credit for qualified nonroad equipment

(a)

Allowance of credit

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 with respect to each unit of qualified nonroad equipment placed in service by the taxpayer in the taxable year. (c)

Qualified nonroad equipment expenses

For purposes of this section— (1)

In general

The term qualified nonroad equipment expenses means the cost of any qualified 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)

Qualified nonroad equipment

(A)

In general

The term qualified nonroad equipment means any equipment that is primarily used for lawn, garden, or forestry purposes, and that is described in subparagraph (B) or (C). (B)

Equipment described in subparagraph (B)

Equipment is described in this subparagraph if such equipment— (i)has a hybrid-electric drive train or cutting system which is powered by a generator or electrical storage device combined with a gasoline or diesel engine certified by the Environment Protection Agency at or below the current Federal standard, (ii)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 is at or below the Phase 3 standards for exhaust and evaporative emissions under part 1060 of title 40, Code of Federal Regulations (or any successor regulation), or (iii)is regulated by the Environmental Protection Agency as a new, compression-ignition engine under part 1039 of title 40, Code of Federal Regulations (or any successor regulation), and is at or below the standards for exhaust emissions under part 1039.102 of title 40, Code of Federal Regulations (or any successor regulation), and identified for use with 100 percent biodiesel as determined by the Secretary in coordination with the Office of Energy Efficiency and Renewable Energy. (C)

Equipment described in subparagraph (C)

Equipment is described in this subparagraph if such equipment— (i)is powered by a motor drawing current from solar power, electricity, or rechargeable or replaceable batteries, or (ii)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 a class 1 or 2 engine certified by the Environmental Protection Agency as having an engine family that emits no more than 50 percent of the number of grams per kilowatt hour of regulated pollutants allowable under Phase 3 of the exhaust emissions standards under section 103 of part 1054 of title 40, Code of Federal Regulations (or any successor regulation), relating to handheld engines, or section 105 of such part, relating to nonhandheld engines, whichever is applicable. (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. (4)

Unit

The term unit does not include any component of qualified nonroad equipment unless such component can be used independently. (d)

Application with other credits

(1)

Business credit treated as part of general business credit

So much of the credit which would be allowed under subsection (a) for any taxable year (determined without regard to this subsection) that is attributable to property of a character subject to an allowance for depreciation shall be treated as a credit listed in section 38(b) for such taxable year (and not allowed under subsection (a)). (2)

Personal credit

(A)

In general

For purposes of this title, the credit allowed under subsection (a) for any taxable year (determined after application of paragraph (1)) shall be treated as a credit allowable under subpart A for such taxable year. (B)

Limitation based on amount of tax

In the case of a taxable year to which section 26(a)(2) does not apply, the credit allowed under subsection (a) for any taxable year (determined after application of paragraph (1)) shall not exceed the excess of— (i)the sum of the regular tax liability (as defined in section 26(b)) plus the tax imposed by section 55, over (ii)the sum of the credits allowable under subpart A (other than this section and sections 23, 25D, 30, 30B, and 30D) and section 27 for the taxable year. (e)

Special rules

(1)

Reduction in basis

For purposes of this subtitle, the basis of any property for which a credit is allowable under subsection (a) shall be reduced by the amount of such credit so allowed (determined without regard to subsection (d)). (2)

Denial of double benefit

No credit shall be allowed under this section for any property for which a credit is allowed under any other provision of this chapter. (f)

Termination

This section shall not apply to any property placed in service— (1)in the case of equipment described in subsection (c)(2)(B), after the date that is 2 years after the date of the enactment of the Greener Gardens Act of 2009, and (2)in the case of equipment described in subsection (c)(2)(C), after the date that is 5 years after such date of enactment.

(b)

Conforming amendments

(1)Section 24(b)(3)(B) of the Internal Revenue Code of 1986 is amended by striking and 30D and inserting , 30D, and 30E. (2)Section 25(e)(1)(C)(ii) of such Code is amended by inserting 30E, after 30D,. (3)Section 25B(g)(2) of such Code is amended by striking and 30D and inserting 30D, and 30E. (4)Section 904(i) of such Code is amended by striking and 30D and inserting 30D, and 30E. (5)Section 1016(a) of such Code is amended by striking and at the end of paragraph (36), by striking the period at the end of paragraph (37) and inserting , and, and by adding at the end the following new paragraph:

(38)to the extent provided in section 30E(e)(1).

(6)Section 1400C(d)(2) of such Code is amended by striking and 30D and inserting 30D, and 30E. (c)

Credit To be part of business credit

Section 38(b) of the Internal Revenue Code of 1986 is amended by striking plus at the end of paragraph (34), by striking the period at the end of paragraph (35) and inserting , plus, and by adding at the end the following:

(36)the portion of the qualified nonroad equipment credit to which section 30E(d)(1) applies.

(d)

Clerical amendment

The table of sections for subpart B 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 30D the following new item:

Sec. 30E. Credit for qualified nonroad equipment.

(e)

Effective date

The amendments made by this section shall apply to property placed in service after the date of the enactment of this Act.