CHEFS Act in plain language
1: Short title
This section would let the Act be called the CHEFS Act or the Cutting Harmful Emissions in Food Service Act.
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1. Short title This Act may be cited as the CHEFS Act or the Cutting Harmful Emissions in Food Service Act .
2: Qualified emissions control device credit
This section would create a new tax credit for an eligible small restaurant business that buys and installs a qualified emissions control device on or in connection with a qualified cook stove or qualified char broiler. The credit for a taxable year would equal a percentage of the total cost the business paid or incurred that year to purchase and install the device, and the percentage would rise as the cost rises: 10 percent if the total cost is $30,000 or less; 15 percent if the cost is over $30,000 but not over $60,000; 20 percent if over $60,000 but not over $90,000; 25 percent if over $90,000 but not over $120,000; 30 percent if over $120,000 but not over $150,000; and 35 percent if the cost is over $150,000. If the restaurant operates in an eligible historical building, that percentage would be increased by 10 percentage points if the building is at least 50 years old but not more than 100 years old, or by 15 percentage points if the building is more than 100 years old. If this credit is allowed for an expense, no other tax credit or deduction could be claimed for that same expense up to the amount of the credit, and the property's basis would have to be reduced by the amount of the credit to the extent the expense was taken into account in figuring that basis. The section defines an eligible small restaurant business as a person in the trade or business of operating a restaurant that uses a qualified cook stove or qualified char broiler and that meets the Small Business Administration's size standard for the North American Industry Classification System code assigned to that restaurant. It defines a qualified emissions control device as equipment used to collect or confine particulate matter 2.5 (PM2.5) to prevent or reduce its release into the open air; a qualified cook stove as any wood-fired or anthracite coal-fired appliance a restaurant uses to prepare food for people to eat; a qualified char broiler as any device made mainly of a grated grill and a heat source that a restaurant uses to prepare food for people to eat; and an eligible historical building as any building that is 50 years old or older. This new credit would become one of the credits that make up the general business credit under section 38 of the tax code. Qualified emissions control devices would be treated as 3-year property for depreciation purposes. These changes would apply to taxable years beginning on or after the date that is one year after this Act is enacted.
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2. Qualified emissions control device credit (a) Establishment of credit (1) In general Subpart D of part IV of subchapter A of chapter 1 of the Internal Revenue Code of 1986 is amended by adding at the end the following new section: 45BB. Qualified emissions control device credit (a) Allowance of credit (1) In general For purposes of section 38, in the case of an eligible small restaurant business, the qualified emissions control device credit determined under this section for any taxable year is an amount equal to the applicable percentage of the total cost paid or incurred by such business during the taxable year to purchase and install a qualified emissions control device on or in connection with a qualified cook stove or qualified char broiler of such business. (2) Applicable percentage For purposes of paragraph (1), the applicable percentage is— (A) if the total cost described in such paragraph is not over $30,000, 10 percent, (B) if the total cost described in such paragraph is over $30,000, but not over $60,000, 15 percent, (C) if the total cost described in such paragraph is over $60,000, but not over $90,000, 20 percent, (D) if the total cost described in such paragraph is over $90,000, but not over $120,000, 25 percent, (E) if the total cost described in such paragraph is over $120,000, but not over $150,000, 30 percent, and (F) if the total cost described in such paragraph is over $150,000, 35 percent. (3) Increase in applicable percentage in certain cases (A) In general In the case of an eligible small restaurant business that operates in an eligible historical building, for purposes of applying paragraph (2) with respect to such business, the applicable percentage shall be increased by the applicable increase. (B) Applicable increase For purposes of subparagraph (A), the applicable increase shall be an amount equal to— (i) in the case of an eligible historical building that is not more than 100 years old, 10 percentage points, and (ii) in the case of an eligible historical building that is more than 100 years old, 15 percentage points. (b) Denial of double benefit In the case of any qualified emissions control device expenses with respect to which credit is allowed under subsection (a)— (1) no other credit or deduction shall be allowed for, or by reason of, any such expense to the extent of the amount of such credit, and (2) the basis of any property shall be reduced by the amount of such credit to the extent that such expenses were taken into account in determining such basis. (c) Definitions For purposes of this section— (1) Eligible small restaurant business The term eligible small restaurant business means any person in the trade or business of operating a restaurant that— (A) uses a qualified cook stove or qualified char broiler, and (B) meets the size standard established by the Administrator of the Small Business Administration under section 3 of the Small Business Act for small business concerns assigned the North American Industry Classification System code applicable to such restaurant. (2) Qualified emissions control device The term qualified emissions control device means any equipment used to collect or confine particulate matter 2.5 (PM2.5) for the purpose of preventing or reducing the emission of such PM2.5 into the open air. (3) Qualified cook stove The term qualified cook stove means any wood fired or anthracite coal fired appliance used by a restaurant to prepare food for human consumption. (4) Qualified char broiler The term qualified char broiler means any device that consists primarily of a grated grill and a heat source and that is used by a restaurant to prepare food for human consumption. (5) Eligible historical building The term eligible historical building means any building that is 50 years old or older. . (2) Clerical amendment The table of sections for subpart D of part IV of subchapter A of chapter 1 of such Code is amended by adding at the end the following new item: 45BB. Qualified emissions control device credit. . (b) Credit made part of general business credit Section 38(b) of such Code is amended by striking plus at the end of paragraph (40), by striking the period at the end of paragraph (41) and inserting , plus , and by adding at the end the following new paragraph: (42) the qualified emissions control device credit determined under section 45BB. . (c) Treatment of qualified emissions control devices as 3 -year property Section 168(e)(3)(A) of such Code is amended by striking and at the end of clause (ii), by striking the period at the end of clause (iii) and inserting , and , and by adding at the end the following new clause: (iv) any qualified emissions control device (as defined in section 45BB(d)). . (d) Effective date The amendments made by this section shall apply to taxable years beginning on or after the date that is one year after the date of the enactment of this Act.