Bill Summary
This legislation, also known as the "PANELS Act", amends the Internal Revenue Code of 1986 to deny the energy credit to any property used for generating solar energy if it is located on prime or unique farmland. This bill defines prime farmland and unique farmland according to the Secretary of Agriculture's definition in the Code of Federal Regulations. It also includes amendments to exclude solar energy facilities from the Clean Electricity Production Credit if they are located on prime or unique farmland. These amendments will apply to any property placed in service after the date of the bill's enactment. This legislation aims to protect important agricultural lands from being used for solar energy generation.
Possible Impacts
1. Farmers who own land that is classified as prime or unique farmland may be affected by this legislation, as they will no longer be eligible for energy credits if they use that land for solar energy production.
2. Solar energy companies may be affected by this legislation, as they will no longer be eligible for clean electricity production credits if their facilities are located on prime or unique farmland.
3. The Secretary of Agriculture may be affected by this legislation, as they are responsible for defining and determining which farmland is considered prime or unique, which may impact the availability of energy credits for solar energy projects.
[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1237 Introduced in House (IH)]
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119th CONGRESS
1st Session
H. R. 1237
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
February 12, 2025
Mr. Bost (for himself and Mr. Finstad) 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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