Bill
S 298
Overview: S 298, the Capital Use Sales Tax, was introduced in the Senate on January 29, 2025, and has been referred to the Committee on Finance.Purpose and Intent: The bill aims to
Overview: S 298, the Capital Use Sales Tax, was introduced in the Senate on January 29, 2025, and has been referred to the Committee on Finance.
Purpose and Intent: The bill aims to establish a new federal sales tax on the use of capital equipment and machinery by businesses, with the goal of incentivizing investment in more efficient and environmentally-friendly technologies.
Key Provisions:
- Imposes a 5% federal sales tax on the use of capital equipment and machinery by businesses
- Provides tax credits and deductions to offset the cost of the sales tax for businesses that invest in qualifying energy-efficient or emissions-reducing technologies
- Directs the revenue from the sales tax to a new "Clean Technology Investment Fund" to support research, development, and deployment of clean energy and manufacturing technologies
Affected Parties and Impacts: The bill would primarily affect businesses that rely heavily on capital equipment and machinery, potentially increasing their operating costs. However, the tax credits and deductions could incentivize investments in more efficient and environmentally-friendly technologies, potentially leading to long-term cost savings and environmental benefits.
Procedural and Timeline Considerations: The bill has been referred to the Senate Committee on Finance and is awaiting further consideration and potential amendments.
Compiled from official sources — confirm details with the bill’s official record.
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