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H.R. 10778House119th Congress (2025-2027)In Committee

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.

Sponsored by Valerie P. FousheeRep. Valerie P. Foushee (D-NC)
Introduced October 9, 2026

AI-Generated Summary

Updated October 14, 2026 at 4:50 AM UTC

The bill creates a new federal tax credit for hospitals, ambulatory surgical centers and similar health‑care facilities that switch to low‑emission anesthetic gases—specifically isoflurane or sevoflurane—and that upgrade mobile anesthetic machines to use those gases. The credit is calculated as a percentage of the facility’s qualified gas purchases plus a small fixed amount for each upgraded machine, and it is only available for expenses incurred after Dec. 31, 2026 and before Dec. 31, 2029.

Key Provisions

  • Adds a “low‑emission anesthetic gas credit” (section 45BB) to the tax code, allowing a credit equal to a set percentage of qualified gas expenditures plus up to $1,500 per retrofitted mobile anesthetic machine.
  • Defines qualified gases as purchases of isoflurane or sevoflurane; qualified machine costs are those for retrofitting a mobile anesthetic machine to use those gases.
  • The credit percentage (15%, 25% or 50%) depends on the facility’s “qualified emission reduction rate,” measured by the drop in global‑warming potential of desflurane or nitrous‑oxide use per inpatient bed compared with the prior year.
  • Specifies that the credit is part of the general business credit and can be elected for payment under existing tax provisions.
  • Requires the Treasury, HHS, and EPA to issue regulations, and limits the credit to expenses incurred after Dec. 31, 2026 and no later than Dec. 31, 2029.

Legislative Activity

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HouseIntro Referral Latest Action

Referred to the House Committee on Ways and Means.

Ways and Means Committee

October 9, 2026

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HouseIntro Referral

Introduced in House

October 9, 2026

HouseIntro Referral

Referred to the House Committee on Ways and Means.

Ways and Means Committee

October 9, 2026

Bill Text

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Introduced in HouseIssued October 9, 2026

I

119th CONGRESS

2d Session

H. R. 10778

IN THE HOUSE OF REPRESENTATIVES

October 9, 2026

Mrs. 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.