PANELS Act

This bill would stop federal tax credits for new solar projects built on “prime” or “unique” farmland, as defined by USDA rules. In short, if a solar facility is placed on high‑quality farmland, it would not qualify for the federal energy tax credit for solar equipment. It also says the new clean electricity production credit cannot be claimed for solar facilities located on those lands.

These changes would apply to property placed in service after the bill becomes law.

• Who is affected: People and companies planning solar projects on high‑quality farmland; landowners considering leasing or selling farmland for solar.
• What changes: No federal energy credit under section 48 for solar property on prime or unique farmland, and no clean electricity production credit for solar facilities on those lands; uses USDA’s farmland definitions in 7 CFR part 657.
• When: Applies to property placed in service after enactment.