Bill > HR3166

This bill proposes a new tax credit to incentivize residential food waste recycling by allowing individuals to claim a 30% credit for expenses related to food recycling appliances and organic waste collection services. Specifically, taxpayers can receive up to $300 for purchasing a qualified residential food recycling appliance (an electric device that separates, dehydrates, and reduces food waste to divert it from landfills) and up to $120 for qualified residential organic waste services that collect and manage locally generated food waste. The appliance and services must be used in the taxpayer's primary U.S. residence, and the credit will be available for qualifying expenses from January 1, 2026, through December 31, 2031. To prevent double benefits, taxpayers cannot also claim a separate deduction for these expenses, and the property's basis must be reduced by the credit amount. The bill aims to encourage more sustainable waste management practices at the household level by providing a financial incentive for residents to reduce food waste and support local organic waste collection and processing services.