No Solar Panels on Fertile Farmland Act of 2025
No Solar Panels on Fertile Farmland Act of 2025
Plain Language Summary
# Summary: No Solar Panels on Fertile Farmland Act of 2025 **What the bill would do:** This legislation would prevent people and companies from claiming federal tax credits for installing solar panels and other renewable energy equipment on prime farmland. Currently, the federal government offers tax credits covering up to 30% of installation costs for residential solar systems, wind turbines, geothermal heat pumps, and battery storage. This bill would eliminate those tax breaks specifically for projects built on high-quality agricultural land, though the credits would still apply elsewhere. **Who it affects:** The bill primarily targets farmers considering renewable energy installations on their property, solar companies looking to develop projects on agricultural land, and renewable energy investors.
It could also indirectly affect consumers by potentially reducing the economic incentive for solar development in agricultural regions. **Key provision & status:** The bill defines "prime farmland" as land classified by the USDA as having the best combination of physical and chemical characteristics for producing crops. Currently, the bill is in committee, meaning it has not yet been debated or voted on by the full House of Representatives.
CRS Official Summary
No Solar Panels on Fertile Farmland Act of 2025This 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 theresidential 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); andclean 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.
Latest Action
Referred to the House Committee on Ways and Means.