H.R.1754 - Future Agriculture Retention and Management Act of 2025; FARM Act of 2025 (119th Congress)
Summary
H.R.1754, the FARM Act of 2025, proposes amendments to the Internal Revenue Code of 1986. The bill aims to restrict energy tax credits for certain renewable energy production, specifically solar and wind, on agricultural land when the energy production is done by public utilities. This restriction is intended to preserve agricultural land for farming purposes.
Expected Effects
The primary effect of this bill, if enacted, would be to reduce the financial incentives for public utilities to develop solar and wind energy projects on agricultural land. This could lead to a decrease in renewable energy projects on farmland and potentially shift such projects to other locations. It could also impact the profitability of public utilities engaging in renewable energy production on agricultural lands.
Potential Benefits
- Potentially preserves agricultural land for farming, supporting the agricultural sector.
- May prevent the conversion of farmland to energy production facilities.
- Could lead to more efficient land use planning, directing renewable energy projects to less agriculturally valuable areas.
- May reduce potential conflicts between agricultural activities and energy production.
- Could encourage innovation in renewable energy technologies that are more compatible with agricultural land use.
Most Benefited Areas:
Potential Disadvantages
- Could slow down the development of renewable energy sources, hindering climate change mitigation efforts.
- May increase the cost of renewable energy projects if alternative locations are more expensive or less efficient.
- Could reduce income opportunities for farmers who might lease their land for energy production.
- May face opposition from renewable energy companies and environmental groups.
- Could lead to legal challenges if the restrictions are perceived as discriminatory or unfair.
Constitutional Alignment
The bill's alignment with the US Constitution is primarily related to Congress's power to tax and regulate commerce. Article I, Section 8 grants Congress the power to lay and collect taxes, duties, imposts, and excises, as well as to regulate commerce among the several states. The bill's provisions regarding tax credits fall under this authority. There are no apparent conflicts with individual rights or liberties protected by the Bill of Rights.
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).