H.R. 6784

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 6784 Introduced in House (IH)]

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119th CONGRESS
1st Session
H. R. 6784

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

_______________________________________________________________________

IN THE HOUSE OF REPRESENTATIVES

December 17, 2025

Mr. Cohen introduced the following bill; which was referred to the 
Committee on Ways and Means

_______________________________________________________________________

A BILL

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

Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE; FINDINGS; PURPOSE.

(a) Short Title.--This Act may be cited as the ``Home Lead Safety 
Tax Credit Act of 2025''.
(b) Findings.--Congress finds that:
(1) Lead is a metal that can produce a wide range of health 
effects in humans when ingested. Children are more vulnerable 
to lead poisoning than adults.
(2) Lead poisoning is a serious, entirely preventable 
threat to a child's intelligence, behavior, and learning. In 
severe cases, lead poisoning can result in death.
(3) According to the Department of Housing and Urban 
Development, approximately 22,000,000 housing units nationwide 
have at least 1 lead paint hazard.
(4) While appropriated Federal lead abatement programs, 
such as the Lead Hazard Control and Healthy Homes grant 
programs, have helped reduce childhood lead poisoning, funding 
constraints have limited their impact to only about 400,000 
homes since 1993.
(5) Childhood lead poisoning can be dramatically reduced by 
the abatement or complete removal of all lead-based hazards. 
Empirical studies also have shown substantial reductions in 
lead poisoning when the affected properties have undergone 
``interim control measures'' that are less costly than 
abatement.
(c) Purpose.--The purpose of this section is to encourage the safe 
removal of lead hazards from homes and thereby decrease the number of 
children who suffer reduced intelligence, learning difficulties, 
behavioral problems, and other health consequences due to lead 
poisoning.

SEC. 2. HOME LEAD HAZARD REDUCTION ACTIVITY TAX CREDIT.

(a) In General.--Subpart C of part IV of subchapter A of chapter 1 
of the Internal Revenue Code of 1986 is amended by inserting after 
section 36B the following new section:

``SEC. 36C. HOME LEAD HAZARD REDUCTION ACTIVITY.

``(a) Allowance of Credit.--
``(1) In general.--Subject to paragraph (2), there shall be 
allowed as a credit against the tax imposed by this subtitle 
for the taxable year an amount equal to 50 percent of the lead 
hazard reduction activity cost paid or incurred by the taxpayer 
during the taxable year for each eligible dwelling unit.
``(2) Election to apply costs to prior year.--For purposes 
of this section, a taxpayer may elect to treat any lead hazard 
reduction activity cost paid or incurred by the taxpayer during 
the taxable year as having been paid or incurred during the 
preceding taxable year.
``(b) Limitations.--
``(1) In general.--Subject to paragraph (3), the amount of 
the credit allowed under subsection (a) for any eligible 
dwelling unit for any taxable year shall not exceed--
``(A) $3,000 in the case of lead hazard reduction 
activity cost including lead abatement measures 
described in clauses (i), (ii), (iv), or (v) of 
subsection (c)(1)(A), and
``(B) $1,000 in the case of lead hazard reduction 
activity cost including interim lead control measures 
described in clauses (i), (iii), (iv), and (v) of 
subsection (c)(1)(A).
``(2) Other tax credits.--In the case of any credit against 
State or local tax liabilities which is allowable under the 
laws of any State or political subdivision thereof to a 
taxpayer with respect to any costs paid or incurred by the 
taxpayer which would otherwise qualify as lead hazard reduction 
activity costs under this section, the amount of the credit 
allowed under subsection (a) for any eligible dwelling unit for 
any taxable year (determined after application of paragraph 
(1)) shall not exceed an amount equal to the excess, if any, 
of--
``(A) the lead hazard reduction activity cost paid 
or incurred by the taxpayer during the taxable year for 
such unit, over
``(B) the amount of such State or local tax credit.
``(3) Limitation per residence.--The cumulative amount of 
the credit allowed under subsection (a) for an eligible 
dwelling unit for all taxable years shall not exceed $4,000.
``(c) Definitions and Special Rules.--For purposes of this 
section--
``(1) Lead hazard reduction activity cost.--
``(A) In general.--The term `lead hazard reduction 
activity cost' means, with respect to any eligible 
dwelling unit--
``(i) the cost for a certified risk 
assessor to conduct an assessment to determine 
the presence of a lead-based hazard (as such 
terms are defined by the Secretary, in 
consultation with the Administrator of the 
Environmental Protection Agency),
``(ii) the cost for performing lead 
abatement measures by a certified lead 
abatement supervisor (as such term is defined 
by the Secretary, in consultation with the 
Administrator of the Environmental Protection 
Agency), including the removal of paint, dust, 
or pipes, the permanent enclosure or 
encapsulation of lead-based paint or pipes, the 
replacement of painted surfaces, windows, or 
fixtures, or the removal or permanent covering 
of soil when lead-based hazards are present,
``(iii) the cost for performing interim 
lead control measures to reduce exposure or 
likely exposure to lead-based hazards, 
including specialized cleaning, repairs, 
maintenance, painting, temporary containment, 
ongoing monitoring of lead-based hazards, and 
the establishment and operation of management 
and resident education programs, but only if 
such measures are evaluated and completed by a 
certified lead abatement supervisor using 
accepted methods, are conducted by a qualified 
contractor, and have an expected useful life of 
more than 10 years,
``(iv) the cost for a certified lead 
abatement supervisor, persons working under the 
supervision of such supervisor, or a qualified 
contractor to perform all preparation, cleanup, 
disposal, and clearance testing activities 
associated with the lead abatement measures or 
interim lead control measures, and
``(v) costs incurred by or on behalf of any 
occupant of such dwelling unit for any 
relocation which is necessary to achieve 
occupant protection (as such term is defined by 
the Secretary, in consultation with the 
Administrator of the Environmental Protection 
Agency).
``(B) Limitation.--The term `lead hazard reduction 
activity cost' does not include any cost to the extent 
such cost is funded by any grant, contract, or 
otherwise by another person or any governmental agency.
``(2) Eligible dwelling unit.--
``(A) In general.--The term `eligible dwelling 
unit' means any dwelling unit--
``(i) which was placed in service before 
1978, and
``(ii) which is located in the United 
States,
without regard to whether such dwelling unit is 
subsidized or assisted under any Federal program.
``(B) Dwelling unit.--The term `dwelling unit' has 
the meaning given such term by section 280A(f)(1).
``(3) Qualified contractor.--The term `qualified 
contractor' means any contractor who has successfully completed 
a training course on lead safe work practices which has been 
approved by the Department of Housing and Urban Development and 
the Environmental Protection Agency.
``(4) Documentation required for credit allowance.--No 
credit shall be allowed under subsection (a) with respect to 
any eligible dwelling unit for any taxable year unless, after 
lead hazard reduction activity is complete, a certified 
inspector (as such term is defined by the Secretary, in 
consultation with the Administrator of the Environmental 
Protection Agency) or certified risk assessor provides written 
documentation to the taxpayer that includes--
``(A) evidence that--
``(i) the eligible dwelling unit meets the 
lead hazard reduction criteria defined by the 
Secretary, in consultation with the 
Administrator of the Environmental Protection 
Agency, or
``(ii) the eligible dwelling unit meets 
lead hazard evaluation criteria established 
under an authorized State or local program, and
``(B) documentation showing that the lead hazard 
reduction activity meets the requirements of this 
section.
``(5) Basis reduction.--The basis of any property for which 
a credit is allowable under subsection (a) shall be reduced by 
the amount of such credit.
``(6) No double benefit.--Any deduction allowable for costs 
taken into account in computing the amount of the credit for 
lead hazard reduction activity shall be reduced by the amount 
of such credit attributable to such costs.
``(d) Inflation Adjustment.--In the case of any taxable year 
beginning in a calendar year after 2025, each of the dollar amounts in 
subsection (b) shall be increased by an amount equal to--
``(1) such dollar amount, multiplied by
``(2) the cost-of-living adjustment determined under 
section 1(f)(3) for the calendar year in which the taxable year 
begins, determined by substituting `calendar year 2024' for 
`calendar year 2016' in subparagraph (A)(ii) thereof.
Any increase determined under the preceding sentence shall be rounded 
to the nearest multiple of $100.
``(e) Termination.--This section shall not apply to any amount paid 
or incurred after December 31, 2028.''.
(b) Conforming Amendments.--
(1) Section 1324(b)(2) of title 31, United States Code, is 
amended by inserting ``, 36C'' after ``36B''.
(2) The table of sections for subpart C of part IV of 
subchapter A of chapter 1 of the Internal Revenue Code of 1986 
is amended by inserting before the item relating to section 37 
the following new item:

``Sec. 36C. Home lead hazard reduction activity.''.
(c) Effective Date.--The amendments made by this section shall 
apply to lead hazard reduction activity costs incurred after December 
31, 2024, in taxable years ending after such date.
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