Sponsors (4)
The bill protects prime farmland, soil health, and local agriculture by denying federal incentives for utility‑scale or other energy projects on those soils, but at the cost of higher project costs, slower renewable deployment (and local clean‑energy jobs), and added compliance complexity for developers, taxpayers, and governments.
Owners of prime farmland (farmers and rural communities) are less likely to have productive soils converted to utility-scale solar, preserving soil quality, local water infiltration, long-term farm income, and food production.
Projects on non-prime farmland (and non‑agricultural property owners) retain eligibility for federal clean energy tax credits, preserving incentives for development on lower‑priority lands.
The bill reduces improper or unintended claims of energy tax credits for projects that convert prime farmland, helping preserve credit integrity and protecting taxpayers from misuse.
Owners and developers of projects sited on prime farmland (including farmer‑developers and utilities) lose eligibility for multiple federal credits/grants/loans, raising project costs or halting projects and likely slowing utility‑scale solar deployment nationally.
Reduced financial incentives for projects on prime farmland will likely slow clean energy growth in some rural areas, reduce local clean‑energy jobs and investment, and may shift development to less optimal or more contentious sites.
The bill creates compliance and administrative complexity — e.g., state‑defined 'conversion' rules and IRS determinations of 'prime' farmland — producing uncertainty, permitting delays, and potential legal disputes for project planners and taxpayers.
Based on analysis of 7 sections of legislative text.
Prohibits federal funding and removes multiple federal tax credits for ground‑mounted solar projects and solar property placed on prime farmland, effective for projects/properties placed in service after enactment.
Official title: To prohibit the head of a Federal agency from using Federal funds for certain solar energy projects that would result in the conversion of farmland, to exclude from certain tax credits relating to clean energy facilities placed in service on prime farmland, and for other purposes.
Introduced May 8, 2025 by David J. Taylor · Last progress May 8, 2025
Stops federal support and tax incentives for ground-mounted solar projects that convert prime farmland into non-agricultural use. It prohibits federal agencies from funding such utility-scale solar projects and removes federal tax credits and production/investment credits for solar facilities and solar property placed on prime farmland going forward. The bill applies immediately to federal funding decisions and applies to tax credits for property and facilities placed in service after enactment, aiming to preserve land that meets the federal definition of prime farmland for agricultural production.