H.R.1707 - Grown in America Act of 2025 (119th Congress)
Summary
H.R. 1707, the "Grown in America Act of 2025," introduces a tax credit to incentivize the purchase of American agricultural commodities. This bill amends the Internal Revenue Code of 1986 to establish a new section (45BB) providing a credit for domestically produced agriculture. The credit is capped at the lesser of 25% of total agricultural input costs multiplied by an applicable percentage or $100,000,000.
Expected Effects
The bill aims to encourage the consumption of American-grown agricultural products by offering financial incentives to taxpayers. This is intended to boost the domestic agricultural sector. The tax credit's value is tied to the proportion of domestic agricultural inputs used by the taxpayer, with increasing thresholds over time to qualify for the full credit.
Potential Benefits
- Increased demand for American agricultural products.
- Potential boost to the income of American farmers.
- Encouragement for domestic production and reduced reliance on foreign imports.
- Possible job creation in the agricultural sector.
- Support for cooperative organizations through credit apportionment.
Potential Disadvantages
- Potential for increased food costs if domestic production is more expensive.
- Complexity in calculating and administering the tax credit.
- Possible trade disputes with other countries if the policy is seen as protectionist.
- Disadvantage to businesses heavily reliant on foreign agricultural inputs.
- Potential for fraud or abuse in claiming the tax credit.
Constitutional Alignment
The bill aligns with the general welfare clause (Preamble) by aiming to promote the economic well-being of American farmers and ensure a stable food supply. Congress has 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 (Article I, Section 8, Clause 1). The bill falls under this power as it uses tax policy to incentivize certain economic activities.
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).