Bill Summary
This bill, called the Protect Agriculture, Nutrients, and Essential Lands from Solar Act or the PANELS Act, aims to amend the Internal Revenue Code of 1986 in order to deny the energy credit (a tax credit for certain energy-related property) to any property that is located on prime or unique farmland, as defined by the Secretary of Agriculture. This applies specifically to properties that are used for generating solar energy. The bill also adds definitions for "prime farmland" and "unique farmland" and specifies that these terms have the same meaning as outlined in part 657 of title 7 of the Code of Federal Regulations. This amendment also affects the Clean Electricity Production Credit, stating that facilities used for generating solar energy on prime or unique farmland will not qualify for this credit. This amendment will apply to any property placed in service after the date of the Act's enactment.
Possible Impacts
1. Farmers who have invested in solar panels for their farmland may no longer be eligible for the energy credit, leading to financial strain and potential loss of income.
2. Solar energy companies that specialize in building and operating solar facilities on prime or unique farmland may face new challenges and restrictions, potentially impacting their business operations and profits.
3. The new legislation may also affect the availability and accessibility of clean energy for people living in rural areas, as solar facilities may not be built on prime or unique farmland, limiting the potential for clean energy in these areas.
[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4369 Introduced in House (IH)]
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118th CONGRESS
1st Session
H. R. 4369
To amend the Internal Revenue Code of 1986 to deny the energy credit to
property located on prime or unique farmland, as defined by the
Secretary of Agriculture in part 657 of title 7, Code of Federal
Regulations, if such property is used for generating solar energy.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
June 27, 2023
Mr. Bost (for himself, Mr. Langworthy, and Mrs. Chavez-DeRemer)
introduced the following bill; which was referred to the Committee on
Ways and Means
_______________________________________________________________________
A BILL
To amend the Internal Revenue Code of 1986 to deny the energy credit to
property located on prime or unique farmland, as defined by the
Secretary of Agriculture in part 657 of title 7, Code of Federal
Regulations, if such property is used for generating solar energy.
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 ``Protect Agriculture, Nutrients, and
Essential Lands from Solar Act'' or the ``PANELS Act''.
SEC. 2. CREDITS AMENDED TO EXCLUDE PROPERTY LOCATED ON PRIME OR UNIQUE
FARMLAND.
(a) Energy Credit.--
(1) Energy property.--Section 48(a)(3) of the Internal
Revenue Code of 1986 is amended by striking the period at the
end and inserting ``, or property which is located on prime
farmland or unique farmland if such property is used for
generating solar energy.''
(2) Qualified property.--Section 48(a)(5)(D) of such Code
is amended--
(A) in clause (iii), by striking ``and'' at the
end,
(B) in clause (iv), by striking the period at the
end and inserting ``, and'', and
(C) by adding at the end the following new clause:
``(v) which, in the case of property used
for the purpose of generating solar energy, is
not located on prime farmland or unique
farmland.''.
(3) Definitions added.--Section 48(c) of such Code is
amended by adding at the end the following new paragraph:
``(9) Prime farmland; unique farmland.--The terms `prime
farmland' and `unique farmland' have the meaning given such
terms in part 657 of title 7, Code of Federal Regulations.''.
(4) Qualified solar and wind facility.--Section 48(e)(2)(A)
of such Code is amended--
(A) in clause (ii), by striking ``and'' at the end,
(B) in clause (iii), by striking the period at the
end and inserting ``, and'', and
(C) by adding at the end the following new clause:
``(iv) which, in the case of a facility
used for generating solar energy, is not
located on prime farmland or unique
farmland.''.
(b) Clean Electricity Production Credit.--Section 45Y(b)(1) is
amended--
(1) in subparagraph (A), by striking ``subparagraphs (B),
(C), and (D),'' and inserting ``subparagraphs (B), (C), (D),
and (E)'', and
(2) by adding at the end the following new subparagraph:
``(E) Prime farmland and unique farmland
excluded.--The term `qualified facility' shall not
include any facility used for generating solar energy
if such facility is located on prime farmland or unique
farmland (as such terms are defined in section
48(c)(9)).''.
(c) Effective Date.--The amendments made by this section shall
apply to property placed in service after the date of the enactment of
this Act.
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