No Solar Panels on Fertile Farmland Act of 2025
No Solar Panels on Fertile Farmland Act of 2025 would change how federal tax credits for renewable energy are awarded by removing those credits for projects placed on prime farmland. Specifically, it excludes property and facilities located on prime farmland from the residential clean energy credit (Section 25D), the renewable electricity production credit (Section 45 and 45Y), and related investment credits (Sections 48 and 48E). The bill defines prime farmland using a USDA/Secretary of Agriculture determination tied to the existing CFR definition (7 CFR 657.5). The changes apply to projects placed in service after the enactment date and, for some credits, to facilities whose construction begins after enactment. In short, solar or other renewable energy projects sited on prime farmland would no longer be eligible for these federal tax incentives.
Key Points
- 1Excludes prime farmland from major renewable energy tax credits: residential clean energy credit (25D), investment credits (48 and 48E), and production credits (45 and 45Y). Prime farmland projects cannot claim these credits.
- 2Definition of prime farmland: uses the Secretary of Agriculture’s determination aligned with the prime farmland standard in 7 CFR 657.5; the concept comes from USDA farmland classifications.
- 3Effective date: applies to property placed in service after enactment. For the 48E clean electricity investment credit, the construction must begin after enactment to qualify for the exclusion.
- 4Scope covers multiple credits: the bill targets both residential and commercial/utility-scale incentives, including credits tied to facilities and energy storage technologies.
- 5Legislative status and sponsor: introduced in the House on February 6, 2025 by Mrs. Miller of Illinois and referred to the Ways and Means Committee; currently introduced and not yet enacted into law.