CHEFS Act

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:

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.

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.

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.

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.

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.

For purposes of this section—

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.

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.

The term qualified cook stove means any wood fired or anthracite coal fired appliance used by a restaurant to prepare food for human consumption.

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.

The term eligible historical building means any building that is 50 years old or older.

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:

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.

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)).

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.