H.R. 3313: Protecting American Farmland Act

This bill, titled the Protecting American Farmland Act, aims to restrict the use of federal funds for certain solar energy projects that would convert prime farmland into other uses. It establishes strict definitions and conditions regarding these projects and introduces exclusions from tax credits associated with various clean energy initiatives. Here are the primary components of the bill:

Prohibition on Federal Funding for Solar Projects on Prime Farmland

The bill prohibits the head of a federal agency from using any federal funds to support solar energy projects that would lead to the conversion of prime farmland. This includes:

• Direct funding.
• Loans.
• Loan guarantees to individuals or organizations.

Definitions relevant to this prohibition include:

• Conversion: Any process that causes farmland to no longer meet agricultural production standards as defined by state law.
• Covered solar energy project: A project focused on generating electricity from solar energy primarily for sale.
• Prime farmland: Land classified as prime farmland according to the Farmland Protection Policy Act.

Exclusion from Residential Clean Energy Credit

The bill amends tax regulations to exclude solar energy installations on prime farmland from qualifying for residential clean energy tax credits. This means:

• Expenditures related to solar properties on prime farmland will not count towards tax benefits under Section 25D of the Internal Revenue Code.

Exclusion from Renewable Electricity Production Credit

It also amends tax regulations to ensure that any solar facilities located on prime farmland are excluded from the renewable electricity production credit. This applies to:

• Facilities defined by Section 45 of the Internal Revenue Code.

Exclusion from Clean Electricity Production Credit

The bill further excludes solar installations on prime farmland from clean electricity production credits, elaborating that:

• Facilities must meet the definition set for solar energy facilities within the defined parameters.

Exclusion from Energy Credit

Additionally, the legislation stipulates that property placed in service on prime farmland will also be excluded from various energy credits outlined in federal tax law, specifically:

• Provisions under Section 48 of the Internal Revenue Code.

Exclusion from Clean Electricity Investment Credit

Finally, the bill adds that any solar facilities installed on prime farmland shall not be accounted for in the clean electricity investment credit calculations, aligning with other exclusions specified throughout the bill.

Effective Dates

All exclusions described in this bill apply to properties and facilities placed in service after the enactment of this legislation.

Relevant Companies

None found.