H.R. 1080 — No Solar Panels on Fertile Farmland Act of 2025

This section establishes the short title of the Act as the “No Solar Panels on Fertile Farmland Act of 2025.”

This section limits the residential clean energy credit under section 25D of the Internal Revenue Code of 1986 by excluding expenditures properly allocable to property placed in service on prime farmland. As background, the residential clean energy credit allows taxpayers to claim a credit for certain qualified solar, wind, geothermal, and other clean energy property installed at a residence; thus, property installed on land determined by the Secretary of Agriculture to be prime farmland under 7 C.F.R. § 657.5 would no longer be eligible for the credit. This section applies to property placed in service after the date of enactment.

This section limits the renewable electricity production credit by excluding from the definition of a qualified facility any facility located on prime farmland, as defined in 26 U.S.C. § 25D(e)(9). (Thus, facilities placed in service after enactment on prime farmland would not be eligible for the credit under 26 U.S.C. § 45.)

This section limits the energy credit under section 48 of the Internal Revenue Code of 1986 by excluding property located on prime farmland, as defined in section 25D(e)(9), from eligibility. (Thus, property placed in service on prime farmland after the date of enactment would not qualify for the credit.)

This section revises the clean electricity investment credit under 26 U.S.C. § 48E by excluding expenditures properly allocable to property placed in service on prime farmland, as defined in 26 U.S.C. § 25D(e)(9), from the credit calculation. (Thus, investments in qualified facilities or energy storage technology located on prime farmland are not eligible for the 26 U.S.C. § 48E credit if construction begins after the date of enactment.)

This section limits the clean electricity production credit under 26 U.S.C. § 45Y by excluding any facility located on prime farmland, as defined in 26 U.S.C. § 25D(e)(9), from the definition of a qualified facility. (Thus, facilities placed in service after the date of enactment of this section are not eligible for the credit if they are located on prime farmland.)