H.R. 1705

119th CONGRESS 1st Session

To amend the Internal Revenue Code of 1986 to establish a credit for investments in innovative agricultural technology.

IN THE HOUSE OF REPRESENTATIVES · February 27, 2025 · Sponsor: Mr. Kelly of Pennsylvania · Committee: Committee on Ways and Means

Table of contents

• H.R. 1705
  • Sec. 48F. Innovative agricultural technology investment credit.

Sec. 48F. Innovative agricultural technology investment credit.

• (a) In general
  • For purposes of section 46, the innovative agricultural technology investment credit for any taxable year is an amount equal to 30 percent of the qualified investment for such taxable year with respect to any innovative agricultural technology project.
• (b) Qualified investment
  • (1) In general
    • For purposes of subsection (a), the qualified investment with respect to any innovative agricultural technology project for any taxable year is the basis of any qualified property placed in service by the taxpayer during such taxable year which is part of an innovative agricultural technology project.
  • (2) Qualified property
    • For purposes of this section, the term means property— qualified property
      • which is—
        • (i) tangible personal property, whether or not affixed to real property (including equipment, systems and their components, materials, machinery, accessories, and structural components), which is used as an integral part of an innovative agricultural technology project, or
        • (ii) software, a computer system, or similar technology,
      • with respect to which depreciation (or amortization in lieu of depreciation) is allowable, and
    • (C)
      • (i) the construction, reconstruction, or erection of which is completed by the taxpayer, or
      • (ii) which is acquired by the taxpayer if the original use of such property commences with the taxpayer.
  • (3) Innovative agricultural technology project
    • The term means an agricultural technology or system— innovative agricultural technology project
      • which is placed in service before December 31, 2035, and
      • for which the primary purpose is to produce, store, process, and package specialty crops (as defined in section 3 of the Specialty Crops Competitiveness Act of 2004) using—
        • (i) precision agriculture, or
        • (ii) controlled environment agriculture.
• (c) Special rules
  • (1) Certain process expenditure rules made Applicable
    • Rules similar to the rules of subsections (c)(4) and (d) of section 46 (as in effect on the day before the date of the enactment of the Revenue Reconciliation Act of 1990) shall apply for purposes of subsection (a).
  • (2) Denial of double benefit under grant programs
    • Rules similar to the rules of section 48(d) shall apply for purposes of this section with respect to—
      • any renewable energy system, energy efficiency improvement, or equipment or system purchased, made, or installed using a grant provided under section 9007(c) of the Farm Security and Rural Investment Act of 2002 (), or 7 U.S.C. 8107(c)
      • any physical improvement to land made using a payment provided under the environmental quality incentives program established under subchapter A of chapter 4 of subtitle D of title XII of the Food Security Act of 1985 (). 16 U.S.C. 3839aa et seq.
• (d) Definitions
  • In this section—
    • The term means a closed, indoor agricultural production system using controlled environment agriculture technology in which the environment and inputs can be controlled throughout the lifecycle of a crop.
    • The term means any technology (including equipment, systems and their components, materials, and accessories that are necessary for the deployment of such technology) that is required to create, support, and maintain the necessary growing environment for plants and directly contributes to the efficient production, harvesting, processing, or packaging of agricultural products and goods, including— controlled environment agriculture technology
    • The term means the use of on-farm precision agriculture technology in—
    • The term means any technology (including equipment that is necessary for the deployment of such technology) that directly contributes to a reduction in, or improved efficiency of, inputs used in specialty crop production, harvesting, and on-farm storage including— precision agriculture technology