H.R. 1237 — PANELS Act

This section provides the short title of the Act as the “Protect Agriculture, Nutrients, and Essential Lands from Solar Act” or the “PANELS Act.”

This section limits the energy tax credits for solar facilities by excluding property located on prime farmland or unique farmland, as defined in 7 C.F.R. part 657, for property placed in service after enactment of the Act. Specifically, it amends the Energy Credit under 26 U.S.C. § 48 to deny the credit for solar energy property located on prime or unique farmland, adds a new requirement that qualified property used to generate solar energy not be located on such farmland, and makes the same location restriction applicable to qualified solar and wind facilities. It also amends the Clean Electricity Production Credit under 26 U.S.C. § 45Y to exclude from the definition of “qualified facility” any solar facility located on prime farmland or unique farmland.