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PANELS Act
3/12/2025, 2:38 AM
Summary of Bill HR 1237
This means that if a property is considered prime or unique farmland and is being used for solar energy generation, it would no longer be eligible for the energy credit under the proposed amendment. The intention behind this change is to protect valuable farmland from being used for solar energy production, potentially impacting food production and agricultural resources.
The bill does not specify any alternative measures or incentives for renewable energy production on farmland, but rather focuses on restricting the energy credit for properties on prime or unique farmland. It is important to note that this bill is still in the early stages of the legislative process and may undergo revisions or amendments before potentially becoming law.
Congressional Summary of HR 1237
Protect Agriculture, Nutrients, and Essential Lands from Solar Act or the PANELS Act
This 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.
