I 

111TH CONGRESS 

1ST SESSION H. R. 3530 

To amend the Internal Revenue Code of 1986 to provide a Federal income 

tax credit for the purchase of certain nonroad equipment. 

IN THE HOUSE OF REPRESENTATIVES 

JULY 31, 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. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Greener Gardens Act 

5 of 2009’’. 

6 SEC. 2. CREDIT FOR QUALIFIED NONROAD EQUIPMENT. 

7 (a) ALLOWANCE OF CREDIT.—Subpart B of part IV 

8 of subchapter A of chapter 1 of the Internal Revenue Code 

9 of 1986 is amended by inserting after section 30D the fol10 lowing new section: 


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1 ‘‘SEC. 30E. CREDIT FOR QUALIFIED NONROAD EQUIPMENT. 

2 ‘‘(a) ALLOWANCE OF CREDIT.—There shall be al3 lowed as a credit against the tax imposed by this chapter 

4 an amount equal to 25 percent of the qualified nonroad 

5 equipment expenses for the taxable year. 

6 ‘‘(b) LIMITATION.—The credit allowed under sub7 section (a) shall not exceed $1,000 with respect to each 

8 unit of qualified nonroad equipment placed in service by 

9 the taxpayer in the taxable year. 

10 ‘‘(c) QUALIFIED NONROAD EQUIPMENT EX11 PENSES.—For purposes of this section— 

12 ‘‘(1) IN GENERAL.—The term ‘qualified 

13 nonroad equipment expenses’ means the cost of any 

14 qualified nonroad equipment the original use of 

15 which commences with the taxpayer and which is 

16 placed in service by the taxpayer during the taxable 

17 year. 

18 ‘‘(2) QUALIFIED NONROAD EQUIPMENT.— 

19 ‘‘(A) IN GENERAL.—The term ‘qualified 

20 nonroad equipment’ means any equipment that 

21 is primarily used for lawn, garden, or forestry 

22 purposes, and that is described in subparagraph 

23 (B) or (C). 

24 ‘‘(B) EQUIPMENT DESCRIBED IN SUBPARA25 GRAPH (B).—Equipment is described in this 

26 subparagraph if such equipment— 


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1 ‘‘(i) has a hybrid-electric drive train 

2 or cutting system which is powered by a 

3 generator or electrical storage device com4 bined with a gasoline or diesel engine cer5 tified by the Environment Protection 

6 Agency at or below the current Federal 

7 standard, 

8 ‘‘(ii) is regulated by the Environ9 mental Protection Agency as a new, spark10 ignition engine under part 1054 of title 40, 

11 Code of Federal Regulations (or any suc12 cessor regulation), and is at or below the 

13 Phase 3 standards for exhaust and evapo14 rative emissions under part 1060 of title 

15 40, Code of Federal Regulations (or any 

16 successor regulation), or 

17 ‘‘(iii) is regulated by the Environ18 mental Protection Agency as a new, com19 pression-ignition engine under part 1039 

20 of title 40, Code of Federal Regulations (or 

21 any successor regulation), and is at or 

22 below the standards for exhaust emissions 

23 under part 1039.102 of title 40, Code of 

24 Federal Regulations (or any successor reg25 ulation), and identified for use with 100 


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1 percent biodiesel as determined by the Sec2 retary in coordination with the Office of 

3 Energy Efficiency and Renewable Energy. 

4 ‘‘(C) EQUIPMENT DESCRIBED IN SUBPARA5 GRAPH (C).—Equipment is described in this 

6 subparagraph if such equipment— 

7 ‘‘(i) is powered by a motor drawing 

8 current from solar power, electricity, or re9 chargeable or replaceable batteries, or 

10 ‘‘(ii) is powered by alternative power 

11 sources and— 

12 ‘‘(I) is regulated by the Environ13 mental Protection Agency as a new, 

14 spark-ignition engine under part 1054 

15 of title 40, Code of Federal Regula16 tions (or any successor regulation), 

17 and 

18 ‘‘(II) is a class 1 or 2 engine cer19 tified by the Environmental Protec20 tion Agency as having an engine fam21 ily that emits no more than 50 per22 cent of the number of grams per kilo23 watt hour of regulated pollutants al24 lowable under Phase 3 of the exhaust 

25 emissions standards under section 103 


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1 of part 1054 of title 40, Code of Fed2 eral Regulations (or any successor 

3 regulation), relating to handheld en4 gines, or section 105 of such part, re5 lating to nonhandheld engines, which6 ever is applicable. 

7 ‘‘(3) ALTERNATIVE POWER SOURCES.—The 

8 term ‘alternative power sources’ means any alter9 native fuel as determined by the Secretary, in co10 ordination with the Office of Energy Efficiency and 

11 Renewable Energy. 

12 ‘‘(4) UNIT.—The term ‘unit’ does not include 

13 any component of qualified nonroad equipment un14 less such component can be used independently. 

15 ‘‘(d) APPLICATION WITH OTHER CREDITS.— 

16 ‘‘(1) BUSINESS CREDIT TREATED AS PART OF

17 GENERAL BUSINESS CREDIT.—So much of the credit 

18 which would be allowed under subsection (a) for any 

19 taxable year (determined without regard to this sub20 section) that is attributable to property of a char21 acter subject to an allowance for depreciation shall 

22 be treated as a credit listed in section 38(b) for such 

23 taxable year (and not allowed under subsection (a)). 

24 ‘‘(2) PERSONAL CREDIT.— 


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1 ‘‘(A) IN GENERAL.—For purposes of this 

2 title, the credit allowed under subsection (a) for 

3 any taxable year (determined after application 

4 of paragraph (1)) shall be treated as a credit 

5 allowable under subpart A for such taxable 

6 year. 

7 ‘‘(B) LIMITATION BASED ON AMOUNT OF

8 TAX.—In the case of a taxable year to which 

9 section 26(a)(2) does not apply, the credit al10 lowed under subsection (a) for any taxable year 

11 (determined after application of paragraph (1)) 

12 shall not exceed the excess of— 

13 ‘‘(i) the sum of the regular tax liabil14 ity (as defined in section 26(b)) plus the 

15 tax imposed by section 55, over 

16 ‘‘(ii) the sum of the credits allowable 

17 under subpart A (other than this section 

18 and sections 23, 25D, 30, 30B, and 30D) 

19 and section 27 for the taxable year. 

20 ‘‘(e) SPECIAL RULES.— 

21 ‘‘(1) REDUCTION IN BASIS.—For purposes of 

22 this subtitle, the basis of any property for which a 

23 credit is allowable under subsection (a) shall be re24 duced by the amount of such credit so allowed (de25 termined without regard to subsection (d)). 


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1 ‘‘(2) DENIAL OF DOUBLE BENEFIT.—No credit 

2 shall be allowed under this section for any property 

3 for which a credit is allowed under any other provi4 sion of this chapter. 

5 ‘‘(f) TERMINATION.—This section shall not apply to 

6 any property placed in service— 

7 ‘‘(1) in the case of equipment described in sub8 section (c)(2)(B), after the date that is 2 years after 

9 the date of the enactment of the Greener Gardens 

10 Act of 2009, and 

11 ‘‘(2) in the case of equipment described in sub12 section (c)(2)(C), after the date that is 5 years after 

13 such date of enactment.’’. 

14 (b) CONFORMING AMENDMENTS.— 

15 (1) Section 24(b)(3)(B) of the Internal Revenue 

16 Code of 1986 is amended by striking ‘‘and 30D’’ 

17 and inserting ‘‘, 30D, and 30E’’. 

18 (2) Section 25(e)(1)(C)(ii) of such Code is 

19 amended by inserting ‘‘30E,’’ after ‘‘30D,’’. 

20 (3) Section 25B(g)(2) of such Code is amended 

21 by striking ‘‘and 30D’’ and inserting ‘‘30D, and 

22 30E’’. 

23 (4) Section 904(i) of such Code is amended by 

24 striking ‘‘and 30D’’ and inserting ‘‘30D, and 30E’’. 


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1 (5) Section 1016(a) of such Code is amended 

2 by striking ‘‘and’’ at the end of paragraph (36), by 

3 striking the period at the end of paragraph (37) and 

4 inserting ‘‘, and’’, and by adding at the end the fol5 lowing new paragraph: 

6 ‘‘(38) to the extent provided in section 

7 30E(e)(1).’’. 

8 (6) Section 1400C(d)(2) of such Code is 

9 amended by striking ‘‘and 30D’’ and inserting 

10 ‘‘30D, and 30E’’. 

11 (c) CREDIT TO BE PART OF BUSINESS CREDIT.— 

12 Section 38(b) of the Internal Revenue Code of 1986 is 

13 amended by striking ‘‘plus’’ at the end of paragraph (34), 

14 by striking the period at the end of paragraph (35) and 

15 inserting ‘‘, plus,’’ and by adding at the end the following: 

16 ‘‘(36) the portion of the qualified nonroad 

17 equipment credit to which section 30E(d)(1) ap18 plies.’’. 

19 (d) CLERICAL AMENDMENT.—The table of sections 

20 for subpart B of part IV of subchapter A of chapter 1 

21 of the Internal Revenue Code of 1986 is amended by in22 serting after the item relating to section 30D the following 

23 new item: 

‘‘Sec. 30E. Credit for qualified nonroad equipment.’’. 


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1 (e) EFFECTIVE DATE.—The amendments made by 

2 this section shall apply to property placed in service after 

3 the date of the enactment of this Act. 

Æ 


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