What This Bill Does
This bill stops certain renewable energy tax credits from applying when solar or wind energy equipment is built on agricultural land by public utilities. The bill is called the Future Agriculture Retention and Management Act of 2023, or the FARM Act of 2023. It modifies the federal tax code to restrict these energy credits in specific situations.
Who It Affects
Public utilities that operate solar or wind energy facilities on agricultural land are directly affected by this bill.
Key Provisions
• Solar energy equipment placed in service by a public utility on agricultural land will not qualify for the energy tax credit (Sec. 2(a))
• Wind energy facilities placed in service by a public utility on agricultural land will not qualify for the energy tax credit (Sec. 2(b))
• Agricultural land is defined as "eligible land" according to section 1240A of the Food Security Act of 1985 (Sec. 2(a) and 2(b))
• Public utility is defined according to section 136(c)(2) of the tax code (Sec. 2(a) and 2(b))
What Changes
Public utilities will lose eligibility for federal tax credits when they place new solar or wind equipment in service on agricultural land after this law is enacted.
Important Definitions
• Agricultural land: has the meaning given to "eligible land" in section 1240A of the Food Security Act of 1985
• Public utility: has the meaning given in section 136(c)(2) of the tax code
Effective Date
The changes apply to property placed in service after the date this bill becomes law (Sec. 2(c))
I
118TH CONGRESS
1ST SESSION
H. R. 963
To amend the Internal Revenue Code of 1986 to provide that the energy
credit shall not apply to certain types of energy production on agricul-
tural land, and for other purposes.
IN THE HOUSE OF REPRESENTATIVES
FEBRUARY 9, 2023
Mr. TIFFANY introduced the following bill; which was referred to the
Committee on Ways and Means
A BILL
To amend the Internal Revenue Code of 1986 to provide
that the energy credit shall not apply to certain types
of energy production on agricultural land, and for other
purposes.
Be it enacted by the Senate and House of Representa-
1
tives of the United States of America in Congress assembled,
2
SECTION 1. SHORT TITLE.
3
This Act may be cited as the ‘‘Future Agriculture Re-
4
tention and Management Act of 2023’’ or ‘‘FARM Act
5
of 2023’’.
6
VerDate Sep 11 2014
05:17 Mar 07, 2023
Jkt 039200
PO 00000
Frm 00001
Fmt 6652
Sfmt 6201
E:\BILLS\H963.IH
H963
kjohnson on DSK79L0C42PROD with BILLS
2
•HR 963 IH
SEC. 2. RESTRICTION ON TAX CREDITS FOR RENEWABLE
1
ENERGY PRODUCTION ON AGRICULTURAL
2
LAND.
3
(a) SOLAR PROPERTY.—
4
(1) IN GENERAL.—Section 48 of the Internal
5
Revenue Code of 1986 is amended by adding at the
6
end the following new subsection:
7
‘‘(f) DENIAL OF CREDIT WITH RESPECT TO CERTAIN
8
SOLAR ENERGY PROPERTY ON AGRICULTURAL LAND.—
9
‘‘(1) IN
GENERAL.—Subsection (a) shall not
10
apply
to
equipment
described
in
subsection
11
(a)(3)(A)(i) that is placed in service by a public util-
12
ity on agricultural land.
13
‘‘(2) DEFINITIONS.—For purposes of this sub-
14
section—
15
‘‘(A) AGRICULTURAL
LAND.—The term
16
‘agricultural land’ has the meaning given the
17
term ‘eligible land’ in section 1240A of the
18
Food Security Act of 1985.
19
‘‘(B) PUBLIC UTILITY.—The term ‘public
20
utility’ has the meaning given the term in sec-
21
tion 136(c)(2).’’.
22
(2)
CONFORMING
AMENDMENT.—Section
23
48(a)(1) of such Code is amended by inserting ‘‘sub-
24
section (f) and’’ after ‘‘provided in’’.
25
VerDate Sep 11 2014
05:17 Mar 07, 2023
Jkt 039200
PO 00000
Frm 00002
Fmt 6652
Sfmt 6201
E:\BILLS\H963.IH
H963
kjohnson on DSK79L0C42PROD with BILLS
3
•HR 963 IH
(b) WIND PROPERTY.—Section 45(e)(6) of such Code
1
is amended to read as follows:
2
‘‘(6) DENIAL
OF
CREDIT
WITH
RESPECT
TO
3
CERTAIN
ENERGY
PROPERTY
ON
AGRICULTURAL
4
LAND.—
5
‘‘(A) IN GENERAL.—The credit determined
6
under subsection (a) shall not apply to elec-
7
tricity produced by a solar energy facility or
8
wind facility placed in service after the date of
9
enactment of the Future Agriculture Retention
10
and Management Act of 2023 by a public util-
11
ity on agricultural land.
12
‘‘(B) DEFINITIONS.—For the purposes of
13
this paragraph—
14
‘‘(i) AGRICULTURAL LAND.—The term
15
‘agricultural land’ has the meaning given
16
the term ‘eligible land’ in section 1240A of
17
the Food Security Act of 1985.
18
‘‘(ii) PUBLIC
UTILITY.—The term
19
‘public utility’ has the meaning given the
20
term in section 136(c)(2).’’.
21
(c) EFFECTIVE DATE.—The amendments made by
22
this section shall apply to property placed in service after
23
the date of enactment of this Act.
24
Æ
VerDate Sep 11 2014
05:17 Mar 07, 2023
Jkt 039200
PO 00000
Frm 00003
Fmt 6652
Sfmt 6301
E:\BILLS\H963.IH
H963
kjohnson on DSK79L0C42PROD with BILLS