H.R. 10778 — Introduced in House

I 119th CONGRESS 2d Session H. R. 10778 IN THE HOUSE OF REPRESENTATIVES October 9, 2026Mrs. Foushee 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 establish a credit to incentivize the use of certain low-emission anesthetic gases by health care facilities, and for other purposes. 1. Establishment of low-emission anesthetic gas credit (a) 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. Low-emission anesthetic gas credit (a) In general For purposes of section 38, in the case of a health care facility, the low-emission anesthetic gas credit for any taxable year is an amount equal to the sum of— (1) the applicable percentage of the qualified low-emission anesthetic gas expenditures of the taxpayer for the taxable year, plus (2) so much of the qualified mobile anesthetic machine expenditures of the taxpayer for the taxable year as does not exceed $1,500 with respect to each mobile anesthetic machine. (b) Definitions For purposes of this section— (1) Qualified low-emission anesthetic gas expenditures The term qualified low-emission anesthetic gas expenditures means, with respect to any health care facility, any amounts paid or incurred by such facility to acquire isoflurane (C3H2ClF5O) or sevoflurane (C4H3F7O). (2) Applicable percentage (A) In general The term applicable percentage means, with respect to any health care facility for any taxable year— (i) 15 percent, if the qualified emission reduction rate of such facility for such taxable year is at least 10 percent, but less than 25 percent, (ii) 25 percent, if the qualified emission reduction rate of such facility for such taxable year is at least 25 percent, but less than 50 percent, and (iii) 50 percent, if the qualified emission reduction rate of such facility for such taxable year is at least 50 percent. (B) Qualified emission reduction rate (i) In general The term qualified emission reduction rate means, with respect to any health care facility for any taxable year, the percentage reduction relative to the preceding taxable year (as certified in such manner as the Secretary may prescribe) in an amount equal to the ratio of— (I) the aggregate global warming potential over a 100-year period with respect to any desflurane (C3H2F6O) or nitrous oxide (N2O) acquired by such facility during the taxable year, to (II) the average inpatient bed capacity of such facility during the taxable year. (ii) Global warming potential For purposes of clause (i), the term global warming potential means the ratio of the time-integrated radiative forcing from the instantaneous release of one kilogram of a trace substance relative to that of one kilogram of carbon dioxide (CO2). (3) Qualified mobile anesthetic machine expenditures The term qualified mobile anesthetic machine expenditures means, with respect to any health care facility, any amounts paid or incurred by such facility for the rehabilitation or retrofitting of a mobile anesthetic machine in order for such machine to be compatible with the use of isoflurane (C3H2ClF5O) or sevoflurane (C4H3F7O). (4) Health care facility The term health care facility means any hospital, ambulatory surgical center described in section 1833(i)(1)(A) of the Social Security Act, or other facility designated by the Secretary. (c) Regulations The Secretary, in consultation with the Secretary of Health and Human Services and the Administrator of the Environmental Protection Agency, shall prescribe such regulations or other guidance as may be necessary or appropriate to carry out the purposes of this section. (d) Termination No credit shall be allowed under this section with respect to any amounts paid or incurred after December 31, 2029. . (b) Credit allowed as 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 low-emission anesthetic gas credit determined under section 45BB(a). . (c) Elective payment of credit Section 6417(b) of such Code is amended by redesignating paragraphs (10) through (12) as paragraphs (11) through (13), respectively, and by inserting after paragraph (9) the following new paragraph: (10) The low-emission anesthetic gas credit determined under section 45BB(a). . (d) 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 after the item relating to section 45AA the following new item: Sec. 45BB. Low-emission anesthetic gas credit. . (e) Effective date The amendments made by this section shall apply with respect to amounts paid or incurred after December 31, 2026.