[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5686 Introduced in House (IH)]
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119th CONGRESS
1st Session
H. R. 5686
To amend the Internal Revenue Code of 1986 to allow a credit against
tax for expenses relating to the purchase of battery detectors, and for
other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
October 3, 2025
Mr. Norcross introduced the following bill; which was referred to the
Committee on Ways and Means, and in addition to the Committees on
Energy and Commerce, and Oversight and Government Reform, for a period
to be subsequently determined by the Speaker, in each case for
consideration of such provisions as fall within the jurisdiction of the
committee concerned
_______________________________________________________________________
A BILL
To amend the Internal Revenue Code of 1986 to allow a credit against
tax for expenses relating to the purchase of battery detectors, and for
other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Battery Fire Prevention Act''.
SEC. 2. TAX CREDIT FOR BATTERY DETECTORS.
(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:
``SEC. 45BB. CREDIT FOR BATTERY DETECTORS.
``(a) In General.--For purposes of section 38, the battery detector
credit determined under this section for any taxable year is the amount
equal to 30 percent of the qualified battery detector expenses paid or
incurred by the taxpayer during the taxable year.
``(b) Qualified Battery Detector Expenses.--The term `qualified
battery detector expenses' means, with respect to any taxpayer, amounts
paid or incurred for the purchase of any device--
``(1) which uses X-ray technology, artificial intelligence,
radio-frequency identification, or other proven technology to
detect batteries,
``(2) the original use of which begins with such taxpayer,
and
``(3) which is used by such taxpayer in the trade or
business of recycling.
``(c) Denial of Double Benefit.--In the case of any qualified
battery detector 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.''.
(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. Credit for battery detectors.''.
(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 battery detector credit determined under section
45BB.''.
(c) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after December 31, 2025.
SEC. 3. IMPOSITION OF TAX ON SALES OF BATTERIES.
(a) In General.--Chapter 32 of the Internal Revenue Code of 1986 is
amended by inserting after subchapter D the following new subchapter:
``Subchapter E--Other Items
``Sec. 4191. Battery tax.
``SEC. 4191. BATTERY TAX.
``There is hereby imposed on the sale of any battery by the
manufacturer, producer, or importer a tax equal to 5 percent of the
price for which so sold.''.
(b) Clerical Amendment.--The table of subchapters for chapter 32 of
such Code is amended by inserting after the item relating to subchapter
D the following new item:
``subchapter e--other items''.
(c) Effective Date.--The amendments made by this section shall
apply to sales made after December 31, 2025.
SEC. 4. LITHIUM BATTERY BUY-BACK TRUST FUND.
(a) In General.--Subchapter A of Chapter 98 of the Internal Revenue
Code of 1986 is amended by adding at the end the following new section:
``SEC. 9512. LITHIUM BATTERY BUY-BACK TRUST FUND.
``(a) Creation of Trust Fund.--There is hereby established in the
Treasury of the United States a trust fund to be known as the `Lithium
Battery Buy-Back Trust Fund', consisting of such amounts as may be
appropriated to such Trust Fund as provided in this section.
``(b) Transfer to Trust Fund of Amounts Equivalent to Certain
Taxes.--There are hereby appropriated to the Lithium Battery Buy-Back
Trust Fund amounts equivalent to the taxes received in the Treasury
under section 4191.
``(c) Expenditures From Trust Fund.--Amounts in the Lithium Battery
Buy-Back Trust Fund shall be available, without further appropriation,
to the Secretary of Energy to carry out the National Battery Recycling
Program described in section 5 of the Battery Fire Prevention Act.''.
(b) Clerical Amendment.--The table of sections for subchapter A of
chapter 98 of such Code is amended by adding at the end the following
new item:
``9512. Lithium Battery Buy-Back Trust Fund.''.
(c) Effective Date.--The amendments made by this section shall
apply to taxes received after December 31, 2025.
SEC. 5. NATIONAL BATTERY RECYCLING PROGRAM.
(a) Establishment.--Not later than 5 years after the date of
enactment of this Act, the Secretary of Energy and the Administrator of
the Environmental Protection Agency shall jointly issue a rule to
establish a program to recover and recycle used lithium batteries, to
be known as the National Battery Recycling Program, under which--
(1) the Secretary shall identify and approve facilities
that recycle lithium batteries and make publicly available a
list of such approved facilities, which shall include each
facility that is a recipient of a grant to recycle lithium
batteries under section 40207 of the Infrastructure Investment
and Jobs Act (42 U.S.C. 18741); and
(2) the Secretary and Administrator shall award grants, on
a competitive basis, to such approved facilities to establish
and implement a system for the acceptance and collection of
used lithium batteries, under which system such a facility may
offer a financial incentive to any individual who turns in a
used lithium battery to the facility.
(b) Funding.--In carrying out the National Battery Recycling
Program, the Secretary of Energy may only use amounts from the Lithium
Battery Buy-Back Trust Fund established under section 9512 of the
Internal Revenue Code of 1986, as added by section 4.
(c) Purchase of Lithium Batteries From Approved Facilities.--Each
head of a Federal agency who purchases a lithium battery shall, to the
maximum extent possible, prioritize purchasing such lithium battery
from a facility approved pursuant to subsection (a)(1).
(d) Lithium Battery Defined.--In this section, the term ``lithium
battery'' means a lithium metal battery or a lithium-ion battery.
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