The FARM Act of 2025 would restrict federal tax incentives for renewable energy projects on agricultural land. Specifically, it would deny the federal energy credits that currently apply to solar and wind projects if the project is placed in service by a public utility on agricultural land. For solar, the Investment Tax Credit (ITC) would not apply to solar equipment placed on agricultural land by a public utility. For wind, the Production Tax Credit (PTC) would not apply to electricity produced by a wind facility placed in service by a public utility on agricultural land. The definitions rely on existing legal concepts: “agricultural land” is defined by eligible land in the Food Security Act of 1985, and “public utility” follows the definition in the tax code. The provisions take effect for property placed in service after the enactment date. The bill’s aim appears to be preserving agricultural land from certain federal renewable-energy incentives when projects are undertaken by public utilities on that land.
Key Points
- 1Denial of ITC for solar on agricultural land when placed in service by a public utility (new ITC subsection denoted in Section 48(f)).
- 2Denial of PTC for wind on agricultural land when placed in service by a public utility (amendment to Section 45(e)(6)).
- 3Definitions tied to existing law: “agricultural land” means the eligible land described in section 1240A of the Food Security Act of 1985; “public utility” has the meaning in section 136(c)(2) of the Internal Revenue Code.
- 4Effective date: these credit-denial provisions apply to property placed in service after the date of enactment.
- 5Short title: the bill is called the Future Agriculture Retention and Management Act of 2025 (FARM Act of 2025).