HR 1237 — PANELS Act

Summary

Protect Agriculture, Nutrients, and Essential Lands from Solar Act or the PANELS ActThis bill excludes expenses for solar property placed in service on prime or unique farmland from the energy investment tax credit. The bill also excludes solar facilities placed on prime or unique farmland from the clean electricity production tax credit.Under current law, businesses may be able to claim an energy investment tax credit for qualified solar property placed into service before January 1, 2025. This bill excludes expenses for solar property placed into service on prime or unique farmland (e.g., land with the best combination of physical and chemical characteristics for the production of food and other related uses) from the energy investment tax credit.Further, under current law, a business may also be able to claim the clean electricity production tax credit for the production of electricity using a qualified facility that has no greenhouse gas emissions. The amount of the tax credit is based on the amount of electricity produced and sold by a qualified facility placed into service in 2025 or after. This bill modifies the definition of qualified facility to exclude solar facilities placed on prime or unique farmland.

Bill Text

• Introduced Introduced in House Current html February 12, 2025

AI-generated reading aid from the bill's amendatory text — verify against the official bill.

This bill denies energy credits for solar energy generation on prime or unique farmland.

• Section 48(a)(3)

  . → , or property which is located on prime farmland or unique farmland if such property is used for generating solar energy.

  It adds a condition to the energy credit eligibility, excluding properties on prime or unique farmland used for solar energy.

• Section 48(a)(5)(D)(iii)

  and

  It's part of the amendment's restructuring to add new clauses.

• Section 48(a)(5)(D)(iv)

  . → , and

  It's part of the amendment's restructuring to add new clauses.

• Section 48(a)(5)

  which, in the case of property used for the purpose of generating solar energy, is not located on prime farmland or unique farmland.

  It establishes a new clause to exclude solar energy properties located on prime or unique farmland.

• Section 48(c)

  The terms `prime farmland' and `unique farmland' have the meaning given such terms in part 657 of title 7, Code of Federal Regulations.

  It defines 'prime farmland' and 'unique farmland' for clarity in the law.

• Section 48(e)(2)(A)(ii)

  and

  It's part of the amendment's restructuring to add new clauses.

• Section 48(e)(2)(A)(iii)

  . → , and

  It's part of the amendment's restructuring to add new clauses.

• Section 48(e)(2)(A)

  which, in the case of a facility used for generating solar energy, is not located on prime farmland or unique farmland.

  It establishes a new clause to exclude solar energy facilities located on prime or unique farmland.

• Section 45Y(b)(1)(A)

  subparagraphs (B), (C), and (D), → subparagraphs (B), (C), (D), and (E)

  It expands the definition of applicable subparagraphs under the Clean Electricity Production Credit.

• Section 45Y(b)(1)

  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)).

  It explicitly excludes solar energy facilities on prime or unique farmland from the qualified facility definition.

Action History

1. February 12, 2025

   Introduced in House

2. February 12, 2025

   Introduced in House

3. February 12, 2025

   Referred to the House Committee on Ways and Means.

Sponsors

• Mike Bost · Primary
• Brad Finstad · Cosponsor
• Nicholas A. Langworthy · Cosponsor
• David J. Taylor · Cosponsor
• Sam Graves · Cosponsor

Subjects