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: 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.