Sponsors (2)
The bill prioritizes protecting prime agricultural soils and local land‑use control by removing federal incentives for solar on prime farmland, at the cost of higher project costs, slower utility‑scale solar deployment, fewer local clean‑energy jobs, and added administrative complexity.
Farmers and rural communities keep prime farmland in agricultural production because the bill removes federal incentives for siting utility-scale solar on land meeting the statutory definition of 'prime farmland', reducing pressure to convert productive soils to energy development.
Owners of non-prime farmland and residential taxpayers retain eligibility for clean energy investment/production credits for solar and qualifying energy projects on eligible land, preserving incentives to develop on non-prime sites.
Local governments and landowners gain clearer timing and deference to state/statutory land‑use definitions (effective date clarity and deferral to state standards), which protects local land‑use priorities and gives stakeholders certainty about when the exclusions apply.
Solar developers, utilities, and rural communities may experience slower deployment of utility-scale solar and fewer clean-energy jobs because tax incentives and federal funding eligibility for projects on prime farmland are removed or limited.
Consumers and taxpayers could face higher project and electricity costs as loss of tax credits increases development costs or forces siting on more expensive or remote parcels, potentially raising power prices or delaying projects.
Owners and operators of prime farmland lose access to multiple federal tax credits (investment, production, and clean electricity/energy credits) for projects placed in service after enactment, reducing income diversification options and potentially harming farm incomes and local tax bases.
Based on analysis of 7 sections of legislative text.
Bars federal funding and removes multiple federal tax credits for ground‑mounted solar projects placed on land defined as prime farmland, effective for facilities placed in service after enactment.
Stops federal support for ground‑mounted solar projects that convert prime farmland and removes federal tax incentives for such projects. Federal agencies would be barred from using federal funds for covered solar projects on land defined as "prime farmland," and multiple federal tax credits would exclude solar equipment or facilities placed on prime farmland for property placed in service after enactment. The change affects grant, loan, and loan guarantee funding decisions by federal agencies and the eligibility of solar projects on prime farmland for residential and commercial tax credits and production/investment credits. The result is stronger protection of land classified as prime farmland from conversion to large ground‑mounted solar facilities, while reducing federal financial support for those projects.
Introduced November 20, 2025 by Marsha Blackburn · Last progress November 20, 2025