Supporting Innovation in Agriculture Act of 2025

This bill creates a new federal tax credit to help farms and related businesses invest in modern farming technology. It gives a credit equal to 30% of the cost of qualified equipment or software used in projects that grow, store, process, or package specialty crops using precision agriculture or controlled-environment farming. To qualify, the project must be placed in service by December 31, 2035, and use equipment or software that can be depreciated for taxes, either newly built by the buyer or first put to use by them. Specialty crops are defined by federal law.

Controlled environment agriculture means growing crops indoors in a closed system where temperature, light, water, and other inputs can be tightly managed. Precision agriculture means on-farm tools that cut input use or make it more efficient (like tech that reduces fertilizer, water, or energy use). You cannot “double dip” by using certain USDA grants for the same costs and also claim this credit.

• Who is affected: Farmers and agribusinesses working with specialty crops that invest in precision or indoor growing tech.
• What changes: A 30% tax credit for the cost of qualified equipment and software used in these projects; no double benefits if certain grants already paid for the same items.
• When: Applies to projects placed in service before December 31, 2035.