HR3313-119

1. Short title This Act may be cited as the Protecting American Farmland Act.

2. Prohibition on agency funding for covered solar energy projects The head of a Federal agency may not use Federal funds, including by providing funds, a loan, or a loan guarantee to any person, to carry out a covered solar energy project that would result in the conversion of prime farmland. In this section: The term conversion means, with respect to prime farmland, any activity that results in the farmland failing to meet the requirements of a State (as such term is defined in section 343 of the Consolidated Farm and Rural Development Act (7 U.S.C. 1991)) for agricultural production, activity, or use. The term covered solar energy project means a project for the installation, operation, and maintenance of a ground-mounted facility for the generation of electricity from solar energy, primarily for the purpose of sale of such electricity. The term Federal agency has the meaning given the term agency in section 551 of title 5, United States Code. The term prime farmland means farmland described in section 1540(c)(1)(A) of the Farmland Protection Policy Act (7 U.S.C. 4201(c)(1)(A)).

3. Exclusion of property placed in service on prime farmland from residential clean energy credit Section 25D(e) of the Internal Revenue Code of 1986 is amended by adding at the end the following new paragraph: Qualified solar electric property expenditure which are properly allocable to property placed in service on prime farmland shall not be taken into account for purposes of this section. For purposes of this paragraph, the term prime farmland means farmland described in section 1540(c)(1)(A) of the Farmland Protection Policy Act. The amendment made by this section shall apply to property placed in service after the date of the enactment of this section. (9)Exclusion of solar property located on prime farmland (A)In generalQualified solar electric property expenditure which are properly allocable to property placed in service on prime farmland shall not be taken into account for purposes of this section. (B)Prime farmland definedFor purposes of this paragraph, the term prime farmland means farmland described in section 1540(c)(1)(A) of the Farmland Protection Policy Act..

4. Exclusion of facilities located on prime farmland from renewable electricity production credit Section 45(e) of the Internal Revenue Code of 1986 is amended by adding at the end the following new paragraph: The term qualified facility shall not include any solar energy facility located on prime farmland (as defined in section 25D(e)(9)(B)). The amendment made by this section shall apply to facilities placed in service after the date of the enactment of this section. (14)Exclusion of solar energy facilities located on prime farmlandThe term qualified facility shall not include any solar energy facility located on prime farmland (as defined in section 25D(e)(9)(B))..

5. Exclusion of facilities located on prime farmland from clean electricity production credit Section 45Y(g) of the Internal Revenue Code of 1986 is amended by adding at the end the following new paragraph: The term qualified facility shall not include any solar energy facility located on prime farmland (as defined in section 25D(e)(9)(B)). The amendment made by this section shall apply to facilities placed in service after the date of the enactment of this section. (13)Exclusion of solar facilities located on prime farmlandThe term qualified facility shall not include any solar energy facility located on prime farmland (as defined in section 25D(e)(9)(B))..

6. Exclusion of property placed in service on prime farmland from energy credit Section 48(a)(3) of the Internal Revenue Code of 1986 is amended by inserting or any property located on prime farmland (as defined in section 25D(e)(9)(B)) after any prior taxable year. The amendment made by this section shall apply to property placed in service after the date of the enactment of this section.

7. Exclusion of property placed in service on prime farmland from clean electricity investment credit Section 48E(d) of the Internal Revenue Code of 1986 is amended by adding at the end the following new paragraph: Expenditures which are properly allocable to solar energy property placed in service on prime farmland (as defined in section 25D(e)(9)(B)) shall not be taken into account for purposes of this section. The amendment made by this section shall apply to qualified investments with respect to facilities placed in service after the date of the enactment of this section. (6)Exclusion of solar facilities located on prime farmlandExpenditures which are properly allocable to solar energy property placed in service on prime farmland (as defined in section 25D(e)(9)(B)) shall not be taken into account for purposes of this section..