Energy (Solar · Agriculture)

This bill prohibits federal funding for ground-mounted solar projects that convert prime farmland (defined as the most productive agricultural land under existing law) and excludes such projects from key tax credits like the residential clean energy credit (Section 25D), production tax credits (Sections 45, 45Y), and investment tax credits (Sections 48, 48E). It directly affects solar developers and property owners seeking to install solar facilities on prime farmland, blocking both federal financial support and tax incentives for these projects. The bill uses the existing definition of "prime farmland" from the Farmland Protection Policy Act to prevent agricultural land from being repurposed for solar energy generation. Its core mechanism is a dual restriction: no federal funds for covered projects and exclusion from tax credits for solar installations on protected farmland.

The REAP Modernization Act of 2025 updates the Rural Energy for America Program (REAP) to better support rural agricultural and small business renewable energy projects. It requires the program to actively promote greenhouse gas emission reductions through funded projects, expands eligibility to include producer cooperatives and nongovernmental organizations, and increases the climate benefit consideration from 25% to 50% in project evaluations. The bill also establishes a streamlined application process, mandates a study on dual-use energy systems (combining farming with renewable energy on the same land), and adjusts funding rules to prioritize underutilized renewable technologies. These changes directly affect rural farmers, cooperatives, and small businesses seeking grants for solar, wind, or other renewable energy installations on agricultural properties.

HR 1754, the FARM Act of 2025, blocks tax credits for renewable energy projects on agricultural land. It amends the tax code to deny credits under Sections 48 (solar) and 45 (wind) for public utilities installing solar or wind facilities on agricultural land as defined by existing law (Food Security Act of 1985). The bill directly affects public utilities seeking tax incentives for new renewable energy installations on farmland. The provisions apply to property placed in service after the bill's enactment date. This is a tax code change, not a new program, and does not impact individual farmers or non-public utility projects.