The CHEFS Act would amend the Internal Revenue Code to create a new business tax credit for eligible small restaurant businesses that buy and install qualified emissions control devices on or in connection with qualified cook stoves or qualified char broilers. The credit is based on the total cost of purchase and installation, with a tiered percentage structure that ranges from 10 percent to 35 percent depending on the amount spent. Restaurants operating in eligible historical buildings would receive an additional increase in the credit percentage, with a larger boost for buildings more than 100 years old.
The bill defines eligible businesses as small restaurants that use certain wood-fired or anthracite coal-fired cook stoves or char broilers and meet Small Business Administration size standards for the applicable restaurant industry classification. It defines qualified emissions control devices as equipment used to collect or confine PM2.5 particulate matter to reduce emissions into the open air. The bill also prevents double tax benefits by disallowing other credits or deductions for the same expenses and requiring a corresponding basis reduction. It further treats these emissions control devices as 3-year property for depreciation purposes, and the tax credit would apply to taxable years beginning one year after enactment.
Impact
If enacted, the bill would add a new Section 45BB to the Internal Revenue Code and make conforming amendments to the general business credit and depreciation rules. It would directly affect small restaurant owners that use wood-fired or coal-fired cooking equipment, especially those in older or historic buildings, by lowering the after-tax cost of installing emissions control technology. The measure would also affect federal tax administration by creating a new credit category, defining eligible equipment and businesses, and limiting overlapping tax benefits for the same expenditures.
Sentiment
Because there are no committee transcripts or recorded votes provided, the available context shows no formal opposition or support statements. Based on the bill text and title, the measure appears to be framed as a targeted environmental and small-business tax incentive, suggesting a generally pro-business, pro-clean-air policy approach. The referral to the House Committee on Ways and Means indicates it is at an early legislative stage with no recorded floor sentiment in the provided materials.
Contention
The main policy tension is likely between environmental compliance goals and the cost or administrative burden for small restaurants that use traditional cooking equipment. The bill specifically targets restaurants using wood-fired or anthracite coal-fired stoves and char broilers, which may raise questions about whether the credit is narrowly tailored enough, whether it subsidizes a limited subset of businesses, and whether the historic-building bonus is appropriate. Another possible point of contention is the use of federal tax credits to encourage installation of emissions-control devices, including concerns about revenue loss, eligibility verification, and whether the credit sufficiently addresses PM2.5 emissions without mandating broader regulatory changes.
Creates the Rhode Island clean heat standards act to implement a system of tradeable clean heat credits earned from the delivery of clean heat measures that reduce greenhouse gas emissions.
"Saving Our Diners and Preserving Our Past (SODA POP) Act"; provides sales and use tax exemption and corporation business and gross income tax credits for historic diners and historic restaurants included in online registry.