Grown in America Act of 2025
Summary
What This Bill Does
The Grown in America Act adds a new general business credit for taxpayers that use domestically produced agricultural commodities in products marketed for human consumption. The credit equals the lesser of 25 percent of total agricultural input costs multiplied by the taxpayer's applicable percentage, or $100 million. The applicable percentage is the ratio of domestic agricultural input costs to total agricultural input costs for the taxable year. Covered agricultural commodities include listed commodities used for human consumption or in food manufacturing, with live animals excluded from one referenced category. The credit pushes food processors and manufacturers to source more domestic agricultural inputs by tying the tax benefit to the domestic share of their input costs.
Who Benefits and How
Food manufacturers using domestic crops benefit from a tax credit tied to their domestic agricultural input share. American farmers benefit if processors shift purchases toward eligible domestic commodities. Agricultural cooperatives benefit from increased demand for covered U.S.-grown inputs. Tax planners for food companies benefit from a new credit structure based on input sourcing records.
Who Bears the Burden and How
Treasury Department tax administrators must define, verify, and audit domestic agricultural input costs. Food companies claiming the credit must track total and domestic agricultural input costs by taxable year. Import-dependent food manufacturers may receive a smaller credit or no meaningful benefit. Federal taxpayers bear the fiscal cost of credits up to $100 million per taxpayer.
Key Provisions
- Creates a domestically produced agriculture credit as part of the general business credit.
- Calculates the credit using 25 percent of total agricultural input costs and the domestic input percentage.
- Limits the credit to $100 million per taxpayer per taxable year.
- Defines the domestic input percentage as domestic agricultural input costs divided by total agricultural input costs.
- Targets commodities marketed for human consumption or used in products marketed for human consumption.
Evidence Chain:
This summary is generated from the full bill text using AI analysis. Expand "Detailed Analysis" below for identified beneficiaries/burden bearers with clause-level evidence links.
At a Glance
What This Bill Does
Creates a domestically produced agriculture tax credit equal to 25 percent of covered agricultural input costs multiplied by the domestic input percentage, capped at $100 million per taxpayer per year.
Key Policy Areas
Tax, Agriculture, Food Manufacturing
Primary Purpose
Creates a domestically produced agriculture tax credit equal to 25 percent of covered agricultural input costs multiplied by the domestic input percentage, capped at $100 million per taxpayer per year.
Policy Domains
Resolution provisions
Identified Gains
- Food manufacturers
- American farmers
- Agricultural cooperatives
- Tax planners
Identified Costs
- Treasury Department tax administrators
- Food companies claiming the credit
- Import-dependent food manufacturers
- Federal taxpayers
Sponsors
Legislative Progress
In CommitteeMr. Kustoff (for himself, Mr. Costa, Mr. Alford, Mr. Rouzer, …
Referred to the House Committee on Ways and Means.
Introduced in House
Stakeholder Effects
cui bono?How this legislation distributes effects. Mention counts reflect frequency, not effect magnitude.
Food manufacturers, Import-dependent food manufacturers
Positive-direction: Food manufacturers
Negative-direction: Import-dependent food manufacturers
Bill Structure & Actor Mappings
Who is "The Secretary" in each section?
We use a combination of our own taxonomy and classification in addition to large language models to assess meaning and potential beneficiaries. High confidence means strong textual evidence. Always verify with the original bill text.
Learn more about our methodology