H.R. 1080: No Solar Panels on Fertile Farmland Act of 2025

This bill, titled the No Solar Panels on Fertile Farmland Act of 2025, proposes to make changes to the Internal Revenue Code regarding renewable energy credits and their applicability to prime farmland. Here is a summary of the key provisions contained within the bill:

Exclusions Related to Renewable Energy Credits

The bill aims to exclude certain properties and facilities located on prime farmland from specific renewable energy credits. The primary changes are as follows:

1. Residential Clean Energy Credit

• Expenditures associated with property placed in service on prime farmland would not be counted for the residential clean energy credit.
• Prime farmland is defined as land recognized by the Secretary of Agriculture as prime farmland based on established regulations.

2. Renewable Electricity Production Credit

• The definition of ‘qualified facility’ will be amended to exclude any facility located on prime farmland.

3. Energy Credit

• Similar to the residential clean energy credit, the energy credit would not apply to property placed in service on prime farmland, meaning those investments would not qualify for this credit.

4. Clean Electricity Investment Credit

• This section states that expenditures related to property on prime farmland will not be eligible for clean electricity investment credits.

5. Clean Electricity Production Credit

• Facilities located on prime farmland would be excluded from qualifying for clean electricity production credits.

Effective Date

All the amendments made by this bill would take effect for properties and facilities placed in service after the bill's enactment date.

Relevant Companies

None found