Summary

Prohibits federal agencies from using federal funds to support solar energy projects that would convert designated prime farmland, and removes federal tax incentives for solar facilities and equipment placed on prime farmland. The changes affect multiple clean energy tax credits and production credits so that solar projects sited on prime farmland do not qualify for those tax benefits for property or facilities placed in service after enactment. The bill defines “prime farmland” by cross-reference to existing federal farmland law and applies the prohibition across federal grants/loans and several Internal Revenue Code incentives, shifting financial and permitting incentives away from building utility-scale solar on high-quality agricultural land.

• Federal funds cannot be used to support solar projects that would convert prime farmland.
• Solar equipment and facilities placed on prime farmland are excluded from multiple federal tax credits and production credits.
• The prohibitions apply to property and facilities placed in service after the date of enactment.
• Prime farmland is defined by cross-reference to existing federal farmland law, requiring site-specific determinations.
• The law redirects federal incentives away from utility-scale solar on high-quality agricultural land toward other sites.
• Developers, landowners, and tax advisors must verify farmland status to determine credit eligibility.
• Federal agencies and programs will need screening and documentation procedures to enforce the funding prohibition.
• The bill does not create new spending, nor does it directly restrict non-federally supported solar projects on non-prime farmland.