FARM Act of 2025

This bill would block certain federal clean energy tax credits for projects built by public utilities on farmland. It says the investment tax credit for solar equipment would not apply if the equipment is placed in service by a public utility on agricultural land. It also says the production tax credit would not apply to electricity from new solar or wind facilities put in service by a public utility on agricultural land.

Key points:

• Who is affected: Public utilities planning solar or wind projects on agricultural land.
• What changes: No federal energy credit for these utility-owned or utility-placed projects on farmland.
• When: Applies to property placed in service after the bill becomes law.

The bill uses existing federal definitions for “agricultural land” and “public utility,” and focuses the restriction on projects located on agricultural land.