Grown in America Act of 2025

This bill creates a new federal tax credit to encourage companies to buy American farm products. The credit is based on a company’s spending on farm inputs and is capped at $100 million per year. The basic formula is 25% of total farm input costs multiplied by the company’s “applicable percentage,” which reflects how much of those inputs are domestic. If a company’s three-year average share of domestic farm inputs doesn’t meet set minimums, it gets no credit for that year.

The minimum domestic-share thresholds rise over time: 50% for tax years beginning in 2026, then 55% (2027), 60% (2028), 65% (2029), 70% (2030), 75% (2031), 80% (2032), and 85% for years after 2033. The three-year average is calculated as domestic farm input costs divided by total farm input costs over that period. Farm cooperatives can choose to pass some or all of the credit to their member-patrons, and related businesses are treated as one taxpayer for this credit.

Key points

• Who is affected: Businesses that buy agricultural commodities; eligible farm cooperatives and their members.
• What changes: A new, capped tax credit tied to how much a business buys U.S. farm inputs; no credit if the three-year average domestic share is below set thresholds.
• When: Thresholds start in tax years beginning in 2026 and rise annually through 2033 and beyond.