HB1707, the Grown in America Act of 2025, would create a new federal tax credit for businesses that buy and use American agricultural commodities in producing food products sold for human consumption in the United States. The credit would generally equal 25% of a taxpayer’s domestic agricultural input costs, subject to a cap of $100 million per year, and would be reduced or eliminated for taxpayers whose three-year average share of domestic inputs falls below specified thresholds that rise over time from 50% in 2026 to 85% after 2033.
The bill defines covered agricultural commodities broadly, including certain crop commodities and farm-raised fish products, and it excludes commodities identified by the Secretary of Agriculture as not feasibly producible domestically in a given year. It also includes special rules for agricultural cooperatives, allowing them to allocate the credit to patrons, and it treats aggregated businesses as a single taxpayer for credit purposes. The credit would be added to the general business credit framework and would apply to taxable years beginning after December 31, 2025.
Impact
The bill would amend the Internal Revenue Code of 1986 by adding a new section 45BB for a domestically produced agriculture credit, modifying section 38 to include that credit in the general business credit, and adjusting related limitation and carryforward rules. It would also direct the Secretary of Agriculture to maintain a yearly list of agricultural commodities that cannot feasibly be produced domestically, which would affect how the credit is calculated and which inputs qualify. The practical effect would be to incentivize food manufacturers and other eligible businesses to source more agricultural inputs from U.S. producers, potentially benefiting domestic farmers, processors, and cooperatives while reducing the tax advantage of foreign-sourced inputs.
Sentiment
There is no recorded committee transcript or vote history in the provided materials, so there is no documented floor or committee sentiment to summarize. Based on the bill’s bipartisan sponsorship, the measure appears to have been introduced with cross-party support and a pro-domestic-agriculture policy goal, but no formal legislative action beyond referral to the House Committee on Ways and Means is shown.
Contention
The main policy tension in the bill is between supporting domestic agriculture and preserving flexibility for businesses that rely on imported inputs. The credit is conditioned on a taxpayer’s domestic sourcing share and phases in stricter thresholds over time, which could be viewed as beneficial to U.S. producers but burdensome for food manufacturers with global supply chains. Another likely point of contention is the Agriculture Department’s authority to identify commodities that cannot feasibly be produced domestically, since that list would determine exceptions to the credit and could affect which industries benefit. The bill’s large annual cap and broad cooperative provisions may also draw scrutiny from tax policy and budget observers.