US Federal House Bill HB1754

US Federal 2025-2026 Regular Session

• Introduced: 2/27/25
• Refer: 2/27/25

Caption

FARM Act of 2025

Summary

HB1754, the “Future Agriculture Retention and Management Act of 2025” or “FARM Act of 2025,” would amend the Internal Revenue Code to bar certain federal energy tax credits for solar and wind projects developed by public utilities on agricultural land. Specifically, it would deny the Section 48 investment tax credit for certain solar energy property placed in service by a public utility on agricultural land, and it would also deny the Section 45 production tax credit for electricity produced by solar or wind facilities placed in service by a public utility on agricultural land after enactment. The bill defines agricultural land by reference to the Food Security Act of 1985 and uses the existing tax code definition of public utility. Its effective date is prospective: the new restrictions would apply only to property placed in service after enactment, meaning existing projects would generally not be affected. In practical terms, the bill would narrow eligibility for federal renewable energy incentives on farmland, potentially affecting utility-scale solar and wind development on agricultural acreage and the tax planning of utilities and project developers.

Impact

HB1754 would amend Sections 45 and 48 of the Internal Revenue Code to create a new exclusion from federal renewable energy tax credits for certain solar and wind projects located on agricultural land and owned or developed by public utilities. This would directly affect the availability of the investment tax credit and production tax credit for qualifying projects, while leaving the underlying credits intact for other types of property and locations. The bill would also incorporate federal agricultural-land definitions from the Food Security Act, tying tax treatment to existing land-use classifications and potentially influencing siting decisions for renewable energy projects on farmland.

Sentiment

The available record shows the bill was introduced and referred to the House Committee on Ways and Means, with no recorded votes or committee transcript excerpts provided. Based on the bill text and title, the measure appears to be framed as a farmland-protection proposal, suggesting support from members concerned about preserving agricultural land for farming uses. Because no debate or vote history is included, there is no direct evidence of broader legislative sentiment, but the bill’s purpose indicates a policy preference for limiting renewable energy development on farmland rather than expanding it.

Contention

The main point of contention is likely the tradeoff between protecting agricultural land and preserving incentives for renewable energy deployment. Supporters would likely argue that utility-scale solar and wind projects can displace farmland and reduce agricultural production, while opponents may contend that the bill would discourage clean energy investment, reduce project viability, and interfere with state and federal renewable energy goals. Another likely issue is the bill’s focus on public utilities, which could be seen as targeting large-scale developers while leaving other landowners and project types unaffected. No formal committee objections or recorded opposition are provided in the materials.