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Grown in America Act of 2025
3/28/2025, 8:06 AM
Summary of Bill HR 1707
The tax credit would serve as an incentive for consumers to support American farmers and the agricultural industry. By purchasing domestic agricultural products, consumers can help boost the economy and support local farmers. The bill aims to promote the importance of buying American agricultural commodities and highlight the benefits of supporting domestic agriculture.
Overall, Bill 119 HR 1707 seeks to promote the purchase of American agricultural products through the implementation of a tax credit. This legislation aims to support the agricultural industry, strengthen the economy, and encourage consumers to buy locally grown produce.
Congressional Summary of HR 1707
Grown in America Act of 2025
This bill establishes a new tax credit (as part of the general business tax credit) for domestically produced agriculture.
Specifically, the bill allows a tax credit for the lesser of (1) 25% of domestically produced agricultural commodity expenses multiplied by the ratio of such expenses to total agricultural commodity expenses (excluding expenses for agricultural commodities that cannot feasibly be produced domestically), or (1) $100 million. (Conditions apply).
To qualify for the tax credit, a business’s average expenses (over three years) for domestically produced agricultural commodities must exceed a certain percentage of total agricultural commodity expenses (excluding expenses for agricultural commodities that cannot feasibly be produced domestically). The required percentage is 50% for 2026 and increases by 5% each year until it reaches 85% for tax years beginning after 2033.
Under the bill, agricultural commodities include
- horticultural, viticultural, and dairy products;
- livestock and livestock products (excluding live animals);
- poultry and bee raising products; and
- farm-raised fish products.
In addition, the general business tax credit limit based on a business’s tax liability is calculated separately for the domestically produced agriculture tax credit, and the credit is generally limited to 50% of a business’s net regular tax liability.
Finally, domestically produced agriculture tax credit amounts in excess of such limitation may be carried forward for 10 years (rather than the 20 years allowed for other business tax credits).
