Companies converting prime farmland into solar panel tracts would be prevented from receiving federal clean energy tax credits under legislation introduced on June 27 by U.S. Rep. Mike Bost (R-IL).
“We are losing precious and productive farmland to companies that are gobbling up acre after acre to install solar panels,” Rep. Bost said. “That has a big impact on America’s agricultural supply chain, our food security, and our local economies.”
Rep. Bost sponsored the PANELS Act, H.R. 4369, alongside two Republican original cosponsors. The bill would amend the Internal Revenue Code of 1986 to deny the energy credit to property located on prime or unique farmland, as defined by the U.S. Secretary of Agriculture in federal regulations, if such property is used for generating solar energy, according to the congressional record bill summary.
The U.S. Department of Agriculture defines prime farmland as land having the best combination of physical and chemical characteristics to produce food, feed, and crops with the minimum amount of fuel, fertilizer, and pesticides, according to Rep. Bost’s bill summary, which notes that unique farmland is used for a specific, high-value crop, such as citrus, tree nuts, and certain fruits and vegetables.
If enacted, H.R. 4369 would not prevent a farmer from leasing his or her property for solar panels, but it would reduce the economic incentive for companies to do so, the summary says.
“My legislation provides a common-sense solution by excluding prime and unique farmland from receiving solar clean energy tax credits,” said Rep. Bost. “We’re saying to our farmers that you still have the private property rights to make the decision that’s best for you, but we’re not incentivizing companies to swoop into our rural communities to convert these vital plots of land.”
H.R. 4369 has been referred to the U.S. House Ways and Means Committee for consideration.