Sponsors (22)
The bill offers a substantial 30% tax credit to accelerate precision and controlled‑environment agriculture for specialty‑crop producers and rural economies, trading off lower federal revenues, uneven sectoral eligibility, and added compliance and administrative burdens that may limit benefits for some small farms.
Farmers and specialty-crop producers receive a 30% tax credit for qualifying precision and controlled-environment agriculture equipment, lowering upfront costs for farm modernization.
Taxpayers (including small farms and non–flow‑through entities) can elect a refundable payment or transfer the credit, improving cash flow and allowing monetization when the taxpayer cannot use the credit directly.
Farmers and rural communities are encouraged to adopt water‑saving and precision technologies (sensors, irrigation, software, AI), which can reduce input costs and improve resource efficiency on farms.
Taxpayers (and thus the federal budget) face reduced federal revenues from a sizable 30% tax expenditure, which could increase budgetary pressures or crowd out other spending if not offset.
Smaller farms and other investors that cannot easily monetize tax credits may get less benefit because the credit is nonrefundable unless they elect the transfer/refund option, adding complexity and potential cost.
Farmers outside the specialty-crop designation and projects placed in service after 2034 are excluded, creating uneven benefits across agricultural sectors and potentially disadvantaging some producers.
Based on analysis of 2 sections of legislative text.
Creates a 30% investment tax credit for qualified precision- or controlled-environment agriculture property for specialty crops; refundable/transferable; applies to projects placed in service by 12/31/2035.
Introduced February 27, 2025 by Mike Kelly · Last progress February 27, 2025
Creates a 30% federal investment tax credit for equipment and other property used in “innovative agricultural technology projects” that produce, store, process, or package specialty crops using precision agriculture or controlled-environment agriculture. The credit can be claimed for qualified property placed in service before December 31, 2035 and applies to property whose construction begins after January 1, 2025. The credit is nonrefundable but may be elected as a refundable payment for certain non–flow-through taxpayers and can be transferred under existing transferability rules; the bill also includes rules to prevent double-dipping with certain USDA grants or EQIP payments and makes conforming changes to the tax code to integrate the new credit.