S. 3227 — Protecting American Farmland Act

This section prohibits the head of a federal agency from using federal funds—including by providing funds, loans, or loan guarantees—to any person for a covered solar energy project that would convert prime farmland. A covered solar energy project is a ground-mounted facility for generating electricity from solar energy primarily for sale; conversion means any activity causing prime farmland (i.e., farmland with the best combination of physical and chemical characteristics for producing food, feed, fiber, forage, oilseed, and other agricultural crops, as defined in the Farmland Protection Policy Act) to fail state requirements for agricultural production, use, or activity; and federal agency has the meaning given in the Administrative Procedure Act (i.e., excluding Congress, courts, and certain other entities).

This section excludes qualified solar electric property expenditures allocable to property placed in service on prime farmland from the residential clean energy tax credit (IRC §25D). Prime farmland is as defined in the Farmland Protection Policy Act (i.e., land with the best combination of physical and chemical characteristics for producing food, feed, fiber, forage, oilseed, and other agricultural crops with minimum inputs of fuel, fertilizer, pesticides, and labor, and without intolerable soil erosion). The exclusion applies to property placed in service after the date of enactment.

This section excludes solar energy facilities located on prime farmland (as defined in IRC §25D(e)(9)(B)) from the definition of qualified facility eligible for the renewable electricity production credit. The exclusion applies to facilities placed in service after the date of enactment.

This section excludes solar facilities located on prime farmland from the definition of qualified facility for the clean electricity production credit (i.e., a tax credit for electricity produced at zero- or low-emissions facilities). The exclusion applies to facilities placed in service after the date of enactment.

This section excludes from the energy investment tax credit (i.e., Section 48 of the Internal Revenue Code) any energy property placed in service on prime farmland (as defined in Section 25D(e)(9)(B)), effective for property placed in service after the date of enactment.

This section excludes from the clean electricity investment credit (i.e., IRC §48E) expenditures allocable to solar facilities placed in service on prime farmland (as defined in IRC §25D(e)(9)(B)) after the date of enactment.