H.R.1237 - Protect Agriculture, Nutrients, and Essential Lands from Solar Act; PANELS Act (119th Congress)
Summary
H.R. 1237, also known as the PANELS Act, aims to amend the Internal Revenue Code of 1986 to deny energy credits for solar energy property located on prime or unique farmland. The bill defines prime and unique farmland according to the Secretary of Agriculture's definitions in Title 7, Code of Federal Regulations, part 657. It was introduced in the House of Representatives on February 12, 2025, and referred to the Committee on Ways and Means.
Expected Effects
The primary effect of this bill, if enacted, would be to disincentivize the placement of solar energy facilities on land designated as prime or unique farmland by removing eligibility for energy tax credits. This could potentially shift solar development to less agriculturally valuable land. It may also impact the overall cost and deployment rate of solar energy projects.
Potential Benefits
- Preservation of prime and unique farmland for agricultural use.
- Potential shift of solar development to less valuable land, reducing competition with agriculture.
- Support for the agricultural sector by limiting the conversion of farmland to other uses.
- May encourage innovation in solar energy deployment on non-agricultural lands.
- Could lead to more sustainable land use practices.
Most Benefited Areas:
Potential Disadvantages
- Potentially increases the cost of solar energy projects due to the need to develop on more expensive or less suitable land.
- May slow down the deployment of solar energy, hindering progress towards renewable energy goals.
- Could create conflicts between agricultural and energy interests in land use planning.
- May disproportionately affect farmers who could benefit from leasing their land for solar development.
- Potential for increased development pressure on other types of land, such as forests or wetlands.
Constitutional Alignment
The bill appears to align with the general welfare clause of the Constitution, as it aims to balance agricultural preservation with energy development. Congress has the power to tax and spend for the general welfare, and this bill uses tax credits to incentivize certain behaviors regarding land use. No specific constitutional conflicts are immediately apparent, as the bill does not infringe on individual rights or state powers.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).