CHEFS Act

The CHEFS Act would create a new federal tax credit (the Qualified Emissions Control Device Credit, section 45BB) for eligible small restaurant businesses that purchase and install qualified emissions control devices on or in connection with qualified cook stoves or qualified char broilers. The credit is a percentage of the total eligible cost, with tiered rates increasing as costs rise, and it can be higher if the restaurant operates in (or is located in) an eligible historical building. The bill also requires that any such expenses receive no double benefit (no other credits/deductions for the same costs, and a reduction in basis if the credit is claimed). The devices are intended to reduce PM2.5 emissions, and the credit would be treated as part of the general business credit. The changes would be effective for taxable years beginning one year after enactment.