Heinrich, Butler Introduce Legislation To Help Local Small Businesses Transition To Clean And Efficient Landscaping Equipment

Submitted by Carol A. Clark
on March 29, 2024
- 8:14 am

U.S. Sen. Martin Heinrich

U.S. SENATE News:

WASHINGTON, D.C. — Thursday, U.S. Sen. Martin Heinrich (D-N.M.), a member of the Senate Committee on Energy and Natural Resources and the co-founder and co-chair of the Bicameral Electrification Caucus, and U.S. Sen. Laphonza Butler (D-Calif.) introduced legislation to establish a new federal tax credit to enable local small businesses, including landscaping and lawn care businesses, to transition to zero-emission equipment more easily and without financial burden.

Transitioning to zero-emission, electric landscaping equipment—such as mowers, leaf blowers, snow blowers, and hedgers—reduces noise pollution, protects landscape workers’ health, improves local air quality, and reduces landscaping companies’ reliance on gas and diesel fuels, which are subject to major price spikes.

According to a 2023 Environment America report, electric appliances save money over time due to their lower fuel and maintenance costs – usually paying back the initial investment in only one to three years. Electric lawn care equipment is also quieter and produces less vibration, making it safer and healthier to operate.

“Small businesses are the backbone of our economy in New Mexico. And right now, they’re getting hit by rising costs,” Heinrich said. “I’m proud to introduce this legislation to ease the financial burden on small businesses through a tax cut to purchase new zero-emission equipment. By helping businesses transition to electric lawn care equipment, we’re protecting workers’ health, reducing pollution, and growing our economy of the future.”

“Landscaping and lawn care businesses across California have an opportunity to help our environment, while also benefiting financially,” Butler said. “This bill would move us away from the loud, pollution-filled landscaping machines we are used to and more towards our national climate goals while giving small businesses a financial boost.”

Specifically, the Promoting Reduction of Emissions through Landscaping Equipment Act would:

Amend the Internal Revenue Code of 1986 to establish a tax credit for local small businesses, including landscaping and lawn care businesses, to help businesses recoup the difference in costs from purchasing zero-emission equipment.
Provide a 40% tax credit on the purchase of zero-emission equipment, such as mowers, leaf blowers, hedgers, and accessories up to $25,000 every year and up to $100,000 over the course of 10 consecutive years.
Apply the new tax credit to any equipment purchased on or after Jan. 1, 2023, also extend to retrofitting equipment that transforms gas-powered devices to zero-emission machines.

U.S. Rep. Lou Correa (D-Calif.) introduced companion legislation in the U.S. House of Representatives in October 2023.

“When I first introduced this legislation in the House, I did so to make sure that small business owners in our community would not be left behind as we continue our transition toward cleaner, greener energy sources,” Correa said. “Many of these small businesses are firms with just one owner and a handful of employees right here on Main Street—who don’t have the financial wiggle room to leave behind their gas- and diesel-powered equipment. They desperately need our support, and I’m honored to have Sen. Heinrich join me in this fight—to turn these small businesses into leaders of the green economy transition, lower costs for working families, and ensure clean air for our children.”

A one-page summary of the Promoting Reduction of Emissions through Landscaping Equipment Act is here.