H.R.1705 - Supporting Innovation in Agriculture Act of 2025 (119th Congress)
Summary
H.R. 1705, the Supporting Innovation in Agriculture Act of 2025, introduces a tax credit for investments in innovative agricultural technology. This bill aims to amend the Internal Revenue Code of 1986 by establishing a credit for investments in technologies related to precision and controlled environment agriculture. The credit is equal to 30% of the qualified investment in such projects.
The bill defines qualified investments and specifies eligible technologies, including those used in producing, storing, processing, and packaging specialty crops. It also includes provisions to prevent double benefits from grant programs and allows for elective payments and transferability of the credit.
This legislation seeks to encourage the adoption of advanced agricultural practices, potentially enhancing efficiency and sustainability in the agricultural sector.
Expected Effects
The primary effect of this bill would be to incentivize investment in innovative agricultural technologies through tax credits. This could lead to increased adoption of precision and controlled environment agriculture techniques. Ultimately, it may improve the efficiency and sustainability of specialty crop production.
This could also stimulate economic activity in the agricultural technology sector. It may also lead to the development and deployment of new technologies.
Finally, the bill could reduce reliance on traditional farming methods, potentially leading to more sustainable and environmentally friendly agricultural practices.
Potential Benefits
- Increased Investment in AgTech: The tax credit will likely spur greater investment in innovative agricultural technologies, leading to advancements in farming practices.
- Enhanced Efficiency: Precision and controlled environment agriculture can optimize resource use, reducing waste and improving crop yields.
- Economic Growth: The bill could stimulate job creation and economic activity within the agricultural technology sector.
- Sustainable Practices: Encouraging the adoption of environmentally friendly technologies may lead to more sustainable agricultural practices.
- Improved Food Security: By enhancing crop production and reducing waste, the bill could contribute to improved food security.
Potential Disadvantages
- Potential for Abuse: The broad definitions of 'innovative agricultural technology' and 'qualified property' could lead to misuse of the tax credit.
- Complexity: The bill introduces new sections to the Internal Revenue Code, potentially increasing complexity for taxpayers and the IRS.
- Limited Scope: The focus on specialty crops might exclude other important areas of agriculture from benefiting from the tax credit.
- Cost to Taxpayers: The tax credit will reduce government revenue, potentially increasing the tax burden on other sectors or contributing to the national debt.
- Uncertainty: The Secretary's discretion to determine 'other technologies' could create uncertainty for investors.
Constitutional Alignment
The bill appears to align with the Constitution's general welfare clause (Preamble). Specifically, it aims to promote agricultural innovation, which could contribute to the overall well-being of the nation.
Article I, Section 8 grants Congress the power to lay and collect taxes, duties, imposts, and excises to pay the debts and provide for the common defense and general welfare of the United States. This bill falls under that power as it amends the Internal Revenue Code to provide a tax credit.
However, the bill's focus on specific agricultural technologies might raise questions about equal protection under the law, although such classifications are generally permissible if rationally related to a legitimate government purpose.
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).