Bill Summary
This legislation, titled the "No Solar Panels on Fertile Farmland Act of 2023," aims to amend the Internal Revenue Code of 1986 to exclude property and facilities located on prime farmland from certain tax credits related to renewable energy production and investment. It defines "prime farmland" as land determined by the Secretary of Agriculture to be prime farmland within the meaning of specific regulations. The legislation specifies the effective dates for the amendments to apply to different types of property and facilities.
Possible Impacts
1. Farmers who have invested in renewable energy production on their prime farmland will no longer be eligible for certain tax credits, potentially causing financial strain and discouraging future investments.
2. Renewable energy companies may be discouraged from building facilities on prime farmland, limiting the potential for clean energy production in certain areas.
3. The exclusion of prime farmland from the renewable electricity production credit may disproportionately affect low-income individuals and communities who may not have access to other forms of clean energy production.
[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4257 Introduced in House (IH)]
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118th CONGRESS
1st Session
H. R. 4257
To amend the Internal Revenue Code of 1986 to exclude property and
facilities located on prime farmland from certain credits relating to
renewable energy production and investment.
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IN THE HOUSE OF REPRESENTATIVES
June 21, 2023
Mrs. Miller of Illinois introduced the following bill; which was
referred to the Committee on Ways and Means
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A BILL
To amend the Internal Revenue Code of 1986 to exclude property and
facilities located on prime farmland from certain credits relating to
renewable energy production and investment.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``No Solar Panels on Fertile Farmland
Act of 2023''.
SEC. 2. EXCLUSION OF PROPERTY PLACED IN SERVICE ON PRIME FARMLAND FROM
RESIDENTIAL CLEAN ENERGY CREDIT.
(a) In General.--Section 25D(e) of the Internal Revenue Code of
1986 is amended by adding at the end the following new paragraph:
``(9) Exclusion of prime farmland.--
``(A) In general.--Expenditures which are properly
allocable to property placed in service on prime
farmland shall not be taken into account for purposes
of this section.
``(B) Prime farmland defined.--For purposes of this
paragraph, the term `prime farmland' means land
determined by the Secretary of Agriculture to be prime
farmland within the meaning of part 657.5 of title 7,
Code of Federal Regulations.''.
(b) Effective Date.--The amendment made by this section shall apply
to property placed in service after the date of the enactment of this
section.
SEC. 3. EXCLUSION OF FACILITIES LOCATED ON PRIME FARMLAND FROM
RENEWABLE ELECTRICITY PRODUCTION CREDIT.
(a) In General.--Section 45(e) of the Internal Revenue Code of 1986
is amended by adding at the end the following new paragraph:
``(14) Prime farmland excluded.--The term `qualified
facility' shall not include any facility located on prime
farmland (as defined in section 25D(e)(9)).''.
(b) Effective Date.--The amendments made by this section shall
apply to facilities placed in service after the date of the enactment
of this section.
SEC. 4. EXCLUSION OF PROPERTY PLACED IN SERVICE ON PRIME FARMLAND FROM
ENERGY CREDIT.
(a) In General.--Section 48(a)(3) of the Internal Revenue Code of
1986 is amended by inserting ``or any property located on prime
farmland (as defined in section 25D(e)(9))'' after ``any prior taxable
year''.
(b) Effective Date.--The amendment made by this section shall apply
to property placed in service after the date of the enactment of this
section.
SEC. 5. EXCLUSION OF PROPERTY PLACED IN SERVICE ON PRIME FARMLAND FROM
CLEAN ELECTRICITY INVESTMENT CREDIT.
(a) In General.--Section 48E(d) of the Internal Revenue Code of
1986 is amended by adding at the end the following new paragraph:
``(6) Exclusion of prime farmland.--Expenditures which are
properly allocable to property placed in service on prime
farmland (as defined in section 25D(e)(9)) shall not be taken
into account for purposes of this section.''.
(b) Effective Date.--The amendment made by this section shall apply
to qualified investments with respect to any qualified facility or
energy storage technology the construction of which begins after the
date of the enactment of this section.
SEC. 6. EXCLUSION OF FACILITIES LOCATED ON PRIME FARMLAND FROM CLEAN
ELECTRICITY PRODUCTION CREDIT.
(a) In General.--Section 45Y(b)(1) of the Internal Revenue Code of
1986 is amended by adding at the end the following new subparagraph:
``(E) Prime farmland excluded.--The term `qualified
facility' shall not include any facility located on
prime farmland (as defined in section 25D(e)(9)).''.
(b) Effective Date.--The amendments made by this section shall
apply to facilities placed in service after the date of the enactment
of this section.
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