S. 3227: Protecting American Farmland Act
This bill, known as the Protecting American Farmland Act, has several main objectives aimed at preserving prime farmland while addressing solar energy projects. Below are the key components of the bill:
Prohibition on Federal Agency Funding
The bill prohibits the head of any Federal agency from using Federal funds, including loans and guarantees, to support solar energy projects that would lead to the conversion of prime farmland. This means that if a solar project involves transforming farmland into areas for solar energy production, the Federal government cannot financially support it.
Definitions
- Conversion: This refers to any action that causes farmland to no longer meet state requirements for agricultural use.
- Covered Solar Energy Project: Defined as any project related to the setup, operation, and maintenance of ground-mounted facilities that generate electricity from solar energy for sale.
- Prime Farmland: This is land that has been classified as prime farmland under specific regulations, indicating it is the best land for agricultural production.
Exclusion from Residential Clean Energy Credit
The bill amends the Internal Revenue Code to exclude solar energy systems placed on prime farmland from benefiting from residential clean energy credits. This means that if solar energy systems are installed on prime farmland, the costs associated with those systems will not qualify for tax credits that are normally available for such installations.
Exclusion from Renewable Electricity Production Credit
Exclusion from Clean Electricity Production Credit
Facilities using solar energy that are located on prime farmland will be excluded from qualifying for clean electricity production credits, further limiting the financial incentives available for solar projects that take place on this land.
Exclusion from Energy Credits
The bill also amends other sections of the Internal Revenue Code to specify that any property placed in service on prime farmland will not be eligible for energy-related tax credits. This applies to various types of energy investments and creates a consistent standard across multiple financial incentives.
Exclusion from Clean Electricity Investment Credit
Finally, similar to previous sections, the bill outlines that any solar energy facilities placed on prime farmland will not be accounted for when determining clean electricity investment credits. This reinforces the overall aim of protecting prime farmland from being repurposed for solar energy projects that would limit its agricultural potential.
Effective Date
All amendments made by this bill will apply only to facilities and projects placed in service after the date the legislation is enacted.
Relevant Companies
- NDAQ - Companies involved in solar energy production that plan to install facilities on prime farmland may be impacted by the limitations imposed by this bill.
- SUN - Solar companies that depend on expansion into agricultural areas could experience challenges due to funding restrictions.
This is an AI-generated summary of the bill text. There may be mistakes.
Sponsors
2 bill sponsors
Actions
2 actions
| Date | Action |
|---|---|
| Nov. 20, 2025 | Introduced in Senate |
| Nov. 20, 2025 | Read twice and referred to the Committee on Finance. |
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