To amend the Internal Revenue Code of 1986 to provide a tax credit for taxpayers who remove lead-based hazards.

This bill establishes a federal tax incentive program designed to accelerate the removal of lead-based hazards from residential and commercial properties across the United States. The legislation addresses the persistent public health threat posed by lead contamination in buildings by creating financial incentives for property owners to undertake remediation efforts. By amending the Internal Revenue Code, the bill seeks to reduce the economic barriers that have historically prevented widespread lead hazard abatement, particularly in older housing stock and commercial buildings where lead-based paint and other lead hazards remain prevalent. The tax credit mechanism represents a market-based approach to environmental health protection, leveraging the tax system to encourage voluntary compliance with lead safety standards while potentially reducing long-term public health costs associated with lead exposure, particularly among children and vulnerable populations.

The bill amends the Internal Revenue Code of 1986 to create a new tax credit available to taxpayers who undertake qualified lead-based hazard removal activities. The credit applies to both residential and commercial properties, establishing a broad scope of eligible properties that can benefit from the incentive. The legislation creates a new section within the tax code specifically dedicated to this environmental health tax credit, representing a novel intersection of tax policy and public health objectives. While the bill establishes the fundamental framework for the credit, the specific calculation methodology, maximum credit amounts, and phase-out thresholds are not detailed in the available summary. The credit appears to be structured as a direct reduction in tax liability rather than a deduction, providing more immediate and tangible financial benefit to property owners who invest in lead hazard mitigation.

The Internal Revenue Service bears primary responsibility for administering this tax credit program, including developing regulations, processing claims, and ensuring compliance with eligibility requirements. The IRS will need to establish verification procedures to confirm that claimed lead hazard removal activities meet federal standards and have been properly completed by qualified contractors or according to approved protocols. Property owners seeking the credit will be required to maintain documentation of their lead hazard removal activities, likely including inspection reports, contractor certifications, and proof of payment for remediation services. The funding mechanism operates through the tax expenditure system, reducing federal revenue rather than requiring direct appropriations. The administrative framework will require coordination between the IRS and environmental health agencies that establish lead hazard standards, creating potential complexity in determining what constitutes qualifying remediation work.

The primary beneficiaries of this legislation are property owners who face significant costs in remediating lead hazards in their buildings, including individual homeowners, landlords, property management companies, and commercial property owners. The tax credit reduces the financial burden of lead abatement, which can cost thousands to tens of thousands of dollars depending on the extent of contamination and the size of the property. By lowering the effective cost of remediation, the bill is expected to increase the rate of lead hazard removal across the housing stock, particularly in older urban areas where lead-based paint remains prevalent. The legislation should produce measurable public health benefits by reducing lead exposure, particularly among children living in older housing, potentially decreasing rates of developmental delays, learning disabilities, and other health conditions associated with lead poisoning. The administrative burden falls on both the IRS, which must process and verify claims, and on property owners, who must navigate documentation requirements and potentially complex eligibility rules. The fiscal impact on federal revenues will depend on the credit's generosity and uptake rate, with costs potentially reaching hundreds of millions of dollars annually if widely utilized.

The constitutional authority for this legislation derives from Congress's broad taxing and spending powers under Article I, Section 8 of the Constitution, which permits the use of tax incentives to promote general welfare objectives including public health. The bill operates within the established framework of the Internal Revenue Code, utilizing the well-established mechanism of tax credits to achieve policy goals. The legislation will require the IRS to promulgate implementing regulations that define qualifying lead hazard removal activities, establish documentation standards, and create verification procedures. These regulations will likely need to reference and incorporate standards established under environmental health statutes, including the Residential Lead-Based Paint Hazard Reduction Act and EPA regulations governing lead abatement. The bill does not appear to preempt state or local lead hazard laws, which may impose additional or more stringent requirements on property owners. Taxpayers denied credits would have access to standard IRS administrative appeals processes and ultimately judicial review through the federal court system, following established tax dispute resolution procedures.

The bill faces several implementation challenges that could affect its effectiveness and efficiency. The verification of lead hazard removal presents significant administrative complexity, as the IRS lacks expertise in environmental health and will need to rely on certifications from other agencies or qualified professionals, creating potential for fraud or abuse. The absence of specified credit amounts, eligibility criteria, and documentation requirements in the available summary suggests that critical details remain to be determined, either through subsequent legislative language or regulatory development. The cost implications for federal revenues are uncertain and could be substantial if the credit is generous and widely claimed, potentially creating budgetary pressures or requiring offsets elsewhere in the tax code. There is risk of unintended consequences, including the possibility that the credit primarily benefits wealthier property owners who would have undertaken remediation regardless, rather than incentivizing new abatement activity. The credit may also create equity concerns if it is structured in ways that favor commercial property owners over residential landlords or individual homeowners, or if it fails to reach properties in low-income communities where lead hazards are often most severe. Opposition may arise from fiscal conservatives concerned about revenue loss and the expansion of tax expenditures, as well as from those who prefer direct regulatory mandates over voluntary incentive-based approaches to lead hazard reduction.