Sponsors (7)
The bill protects agricultural land and limits taxpayer subsidies for utility-scale renewable projects on farmland, but does so at the cost of higher project costs, slower renewable deployment (with potential upward pressure on electricity prices), and added administrative burdens.
Farmers and rural landowners will face fewer large-scale solar and wind installations on productive agricultural land, helping preserve farmland and agricultural uses.
Taxpayers may avoid subsidizing conversion of productive farmland into utility-scale energy infrastructure because projects on agricultural land become ineligible for certain federal investment or production tax credits.
Public utilities and developers lose access to federal investment and production tax credits for solar and wind projects on agricultural land, which raises project costs, reduces deployment of utility-scale renewables, and can translate into higher electricity costs for consumers and small businesses.
Reduced incentives for utility-scale renewables on agricultural land could slow growth of renewable generation and weaken competition in power markets, which may increase electricity prices and affect energy resilience for communities.
Utilities, developers, and government agencies will face added compliance complexity and administrative burden determining which sites qualify as "agricultural land" under the cross-referenced statute, creating delays and higher transaction costs.
Based on analysis of 2 sections of legislative text.
Removes federal ITC and PTC eligibility for solar and wind facilities a public utility places on agricultural land, effective for property placed in service after enactment.
Denies federal renewable energy tax credits for solar or wind facilities that a public utility places on agricultural land. The bill amends the Internal Revenue Code to bar Section 48 investment tax credits and Section 45 production tax credits for qualifying solar and wind property placed in service by a public utility on land defined as agricultural land under the Food Security Act of 1985; the change applies to property placed in service after enactment. The measure narrows federal tax incentives for utility-scale renewable projects sited on farmland, affecting public utilities, farmers, and rural communities by removing a key federal subsidy for those specific installations while leaving other renewable projects and sponsors unchanged.
Official title: To amend the Internal Revenue Code of 1986 to provide that the energy credit shall not apply to certain types of energy production on agricultural land, and for other purposes.
Introduced February 27, 2025 by Thomas P. TIFFANY · Last progress February 27, 2025