Official Summaries

No Solar Panels on Fertile Farmland Act of 2025

This bill excludes expenses for certain property and facilities placed into service on prime farmland from multiple energy-related tax credits.

Specifically, the bill excludes expenses for property placed into service on prime farmland from the

• residential clean energy tax credit (tax credit for up to 30% of the cost to install solar water heating property, solar electric property, fuel cell property, small wind energy property, geothermal heat pump property, or battery storage technology);
• renewable electricity production tax credit (tax credit for electricity that is produced from a qualified facility [for which construction generally begins before 2025] using wind, solar, or other specific types of renewable energy);
• clean electricity production tax credit (tax credit for electricity that is produced from a qualified facility that is placed into service after 2024 and has a greenhouse gas emissions rate of zero);
• energy investment tax credit (tax credit for investment in qualifying energy property for which construction generally begins before 2025, with some limited exceptions); and
• clean electricity investment tax credit (tax credit for investment in qualifying energy property placed into service after 2024 and has an anticipated greenhouse gas emissions rate of zero).

The bill defines prime farmland as land with the best combination of physical and chemical characteristics for the production of food and other related uses.

Current Full Text

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1080 Introduced in House (IH)]

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119th CONGRESS
  1st Session
                                H. R. 1080

  To amend the Internal Revenue Code of 1986 to exclude property and 
 facilities located on prime farmland from certain credits relating to 
              renewable energy production and investment.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                            February 6, 2025

   Mrs. Miller of Illinois 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 exclude property and 
 facilities located on prime farmland from certain credits relating to 
              renewable energy production and investment.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``No Solar Panels on Fertile Farmland 
Act of 2025''.

SEC. 2. EXCLUSION OF PROPERTY PLACED IN SERVICE ON PRIME FARMLAND FROM 
              RESIDENTIAL CLEAN ENERGY CREDIT.

    (a) In General.--Section 25D(e) of the Internal Revenue Code of 
1986 is amended by adding at the end the following new paragraph:
            ``(9) Exclusion of prime farmland.--
                    ``(A) In general.--Expenditures which are properly 
                allocable to property placed in service on prime 
                farmland shall not be taken into account for purposes 
                of this section.
                    ``(B) Prime farmland defined.--For purposes of this 
                paragraph, the term `prime farmland' means land 
                determined by the Secretary of Agriculture to be prime 
                farmland within the meaning of part 657.5 of title 7, 
                Code of Federal Regulations.''.
    (b) Effective Date.--The amendment made by this section shall apply 
to property placed in service after the date of the enactment of this 
section.

SEC. 3. EXCLUSION OF FACILITIES LOCATED ON PRIME FARMLAND FROM 
              RENEWABLE ELECTRICITY PRODUCTION CREDIT.

    (a) In General.--Section 45(e) of the Internal Revenue Code of 1986 
is amended by adding at the end the following new paragraph:
            ``(14) Prime farmland excluded.--The term `qualified 
        facility' shall not include any facility located on prime 
        farmland (as defined in section 25D(e)(9)).''.
    (b) Effective Date.--The amendment made by this section shall apply 
to facilities placed in service after the date of the enactment of this 
section.

SEC. 4. EXCLUSION OF PROPERTY PLACED IN SERVICE ON PRIME FARMLAND FROM 
              ENERGY CREDIT.

    (a) In General.--Section 48(a)(3) of the Internal Revenue Code of 
1986 is amended by inserting ``or any property located on prime 
farmland (as defined in section 25D(e)(9))'' after ``any prior taxable 
year''.
    (b) Effective Date.--The amendment made by this section shall apply 
to property placed in service after the date of the enactment of this 
section.

SEC. 5. EXCLUSION OF PROPERTY PLACED IN SERVICE ON PRIME FARMLAND FROM 
              CLEAN ELECTRICITY INVESTMENT CREDIT.

    (a) In General.--Section 48E(d) of the Internal Revenue Code of 
1986 is amended by adding at the end the following new paragraph:
            ``(6) Exclusion of prime farmland.--Expenditures which are 
        properly allocable to property placed in service on prime 
        farmland (as defined in section 25D(e)(9)) shall not be taken 
        into account for purposes of this section.''.
    (b) Effective Date.--The amendment made by this section shall apply 
to qualified investments with respect to any qualified facility or 
energy storage technology the construction of which begins after the 
date of the enactment of this section.

SEC. 6. EXCLUSION OF FACILITIES LOCATED ON PRIME FARMLAND FROM CLEAN 
              ELECTRICITY PRODUCTION CREDIT.

    (a) In General.--Section 45Y(b)(1) of the Internal Revenue Code of 
1986 is amended by adding at the end the following new subparagraph:
                    ``(E) Prime farmland excluded.--The term `qualified 
                facility' shall not include any facility located on 
                prime farmland (as defined in section 25D(e)(9)).''.
    (b) Effective Date.--The amendment made by this section shall apply 
to facilities placed in service after the date of the enactment of this 
section.
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