[Congressional Record Volume 155, Number 64 (Wednesday, April 29, 2009)]
[Senate]
[Page S4897]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. LEAHY (for himself and Mr. Sanders):
  S. 929. A bill to amend the Internal Revenue Code of 1986 to provide 
a Federal income tax credit for the purchase of certain nonroad 
equipment powered by alternative power sources; to the Committee on 
Finance.
  Mr. LEAHY. Mr. President, I rise today with my good friend from 
Vermont, Senator Sanders, to introduce legislation that will help our 
environment and our economy by providing a 25 percent tax credit 
towards the purchase of environmentally friendly lawn, garden, and 
forestry power equipment.
  There are an estimated 50 million acres of lawns and managed turf 
grass in the U.S. and the small engines used in power equipment 
predominantly used today to maintain these lawns emit a variety of 
pollutants that can be harmful to people and the environment. By 
promoting the use of alternative fuels, we can reduce the carbon 
footprint of lawn and garden equipment and reduce air and water 
pollution.
  The Environmental Protection Agency, EPA, recently finalized a new 
emission control program to reduce hydrocarbon emissions and 
evaporative emissions from the small, spark-ignition engines that are 
commonly used in lawn, garden, and forestry equipment. I applaud the 
EPA for setting these new emissions standards because they eventually 
will reduce the harmful health effects of ozone and carbon monoxide. I 
also appreciate the work being done in the State of California to set 
the stage for these tougher standards and to provide State funds for 
rebates to consumers who purchase the cleanest types of lawn and garden 
equipment.
  We can do more, though, to advance the use of cleaner, alternative 
fueled equipment. Currently, the cleanest, alternative powered 
equipment typically costs dramatically more to produce--in part due to 
their relatively low volumes--compared to higher volume products 
powered by traditional technologies. Our bill is designed to help 
partially close this price differential so that consumers can afford 
the very cleanest products and help advance the most cutting-edge, new 
technologies.
  That is why the bill we are introducing today would reduce air 
pollution even further than the EPA or California standards by 
providing an immediate incentive for people to go beyond the current 
powered equipment emission standards and purchase cleaner, 
alternatively powered or alternative fuel engines and equipment that 
emit half of the emission levels called for by the EPA and that operate 
on little or no fossil fuels. In line with past tax credits that were 
successful in advancing new technologies and boosting consumer demand 
for environmentally friendly products like hybrid vehicles and energy 
efficient home appliances, our new tax credit would give Americans a 
powerful incentive to buy clean, alternative energy power equipment.
  I want to thank the Outdoor Power Equipment Institute and the 
National Audubon Society for their early endorsements of this bill. As 
the Senate prepares to take a thorough look at our energy and 
environmental policies this year, I look forward to working with my 
colleagues to find new ways to further reduce the air emissions and 
fossil fuel consumption of our Nation's lawn, garden, and forestry 
equipment.
  Mr. President, I ask unanimous consent that the text of the bill be 
printed in the Record.
  There being no objection, the text of the bill was ordered to be 
printed in the Record, as follows:

                                 S. 929

       Be it enacted by the Senate and House of Representatives of 
     the United States of America in Congress assembled,

     SECTION 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 is amended by inserting after section 25D the following 
     new section:

     ``SEC. 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.
       ``(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 any equipment 
     that is primarily used for lawn, garden, or forestry 
     purposes, and that--
       ``(A) is powered by a motor drawing current from solar 
     power, electricity, or rechargeable or replaceable batteries,
       ``(B) has a hybrid-electric drive train or cutting system 
     which is 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 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.''.
       (b) Conforming Amendments.--
       (1) Section 24(b)(3)(B) of the Internal Revenue Code of 
     1986 is amended by striking ``and 25B'' and inserting ``, 
     25B, and 25E''.
       (2) Section 25(e)(1)(C)(ii) of such Code is amended by 
     inserting ``25E,'' after ``25D,''.
       (3) Section 25B(g)(2) of such Code is amended by striking 
     ``section 23'' and inserting ``sections 23 and 25E''.
       (4) Section 904(i) of such Code is amended by striking 
     ``and 25B'' and inserting ``25B, and 25E''.
       (5) Section 1400C(d)(2) of such Code is amended by striking 
     ``and 25D'' and inserting ``25D, and 25E''.
       (c) 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.''.

       (d) Effective Date.--The amendments made by this section 
     shall apply to purchases made after the date of the enactment 
     of this Act.
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