H.R. 1754: Future Agriculture Retention and Management Act of 2025

The bill, titled the Future Agriculture Retention and Management Act of 2025 or FARM Act of 2025, proposes changes to the U.S. tax code specifically regarding renewable energy production on agricultural land. Here’s a breakdown of what the bill entails:

Key Provisions

• Restriction on Tax Credits for Solar Energy:
• Restriction on Tax Credits for Wind Energy:
  • Similarly, the bill denies the energy tax credit for electricity produced by wind facilities placed in service after the bill's enactment if those facilities are installed by public utilities on agricultural land. This reflects the same limitations placed on solar energy installations regarding tax credit eligibility.
• Definitions:
  • The term "agricultural land" is defined according to existing definitions in the Food Security Act of 1985.
  • The term "public utility" is also defined in accordance with existing legal definitions.
• Effective Date:
  • The changes proposed by the bill will apply to energy systems placed in service after the bill's enactment date.

Implications

The implications of this legislation primarily revolve around the financial aspects of renewable energy installations on agricultural land. By removing tax credits for solar and wind energy systems commissioned by public utilities on such land, the bill could potentially deter the development of these renewable energy projects in agricultural areas. This may lead to a reallocation of where renewable energy projects are developed and could impact the revenue potential for agricultural landowners who might have considered leasing or selling land for energy production.

Relevant Companies

• NVDA (NVIDIA Corporation): As a company involved in renewable energy technologies and energy solutions, NVIDIA could see changes in partnership opportunities with public utilities.
• NEE (NextEra Energy, Inc.): A large player in renewable energy, NextEra may be directly affected if they operate solar or wind farms on agricultural land, losing out on potential tax incentives.
• DNKN (Dunkin' Brands Group, Inc.): Although primarily a food and beverage company, Dunkin' could be affected if they engage in renewable energy power purchase agreements in agricultural settings.