HR1705119th CongressWALLET

Supporting Innovation in Agriculture Act of 2025

Sponsored By: Representative Kelly (PA)

Introduced

Summary

Creates a 30% tax credit for investments in cutting‑edge farm tech. The bill would let producers claim a nonrefundable Innovative Agricultural Technology Investment Credit for qualified equipment, software, and systems used in precision agriculture or controlled environment agriculture and would make that credit transferable and subject to an elective payment rule.

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Bill Overview

Analyzed Economic Effects

3 provisions identified: 2 benefits, 1 costs, 0 mixed.

30% credit for farm tech

If enacted, farms and ag businesses could claim a new 30% investment tax credit for innovative ag tech projects. Eligible items would include depreciable equipment, systems, and software you build or first place in service. The project’s main purpose would need to be producing, storing, processing, or packaging specialty crops using precision or controlled‑environment farming. Projects would have to be placed in service by December 31, 2035, and construction would need to begin after January 1, 2025. Special process cost rules would apply to how you count qualified investment for the credit.

Cash or transfer farm tech credit

If enacted, you could choose a cash payment instead of using the credit, if you placed qualified property in service after December 31, 2023. Some entity types could not make this election. You could also sell or transfer the credit to another taxpayer under existing transfer rules. These options would apply only to this farm tech credit and to projects where construction began after January 1, 2025. This could help if you cannot use the full credit against your taxes.

No credit for USDA‑funded items

If enacted, you could not claim this 30% credit for equipment or land work paid with certain federal aid. This would include items funded by USDA renewable energy or efficiency grants and land improvements funded by EQIP payments. It blocks getting both the grant and the credit for the same purchase. The limit would apply to projects where construction began after January 1, 2025.

Sponsors & CoSponsors

Sponsor

Kelly (PA)

PA • R

Cosponsors

  • Thompson (CA)

    CA • D

    Sponsored 2/27/2025

  • Rep. Miller, Max L. [R-OH-7]

    OH • R

    Sponsored 2/27/2025

  • Rep. Panetta, Jimmy [D-CA-19]

    CA • D

    Sponsored 2/27/2025

  • Rep. Tenney, Claudia [R-NY-24]

    NY • R

    Sponsored 2/27/2025

  • Riley (NY)

    NY • D

    Sponsored 2/27/2025

  • LaMalfa

    CA • R

    Sponsored 2/27/2025

  • Rep. Hayes, Jahana [D-CT-5]

    CT • D

    Sponsored 2/27/2025

  • Rep. Bynum, Janelle S. [D-OR-5]

    OR • D

    Sponsored 2/27/2025

  • Rep. Moran, Nathaniel [R-TX-1]

    TX • R

    Sponsored 2/27/2025

  • Rep. Valadao, David G. [R-CA-22]

    CA • R

    Sponsored 2/27/2025

  • Rep. Harder, Josh [D-CA-9]

    CA • D

    Sponsored 2/27/2025

  • Rep. Evans, Dwight [D-PA-3]

    PA • D

    Sponsored 3/3/2025

  • Rep. Tokuda, Jill N. [D-HI-2]

    HI • D

    Sponsored 3/3/2025

  • Schrier

    WA • D

    Sponsored 3/3/2025

  • Rep. Salinas, Andrea [D-OR-6]

    OR • D

    Sponsored 3/4/2025

  • Rep. Carter, Earl L. "Buddy" [R-GA-1]

    GA • R

    Sponsored 3/18/2025

  • Rep. McDonald Rivet, Kristen [D-MI-8]

    MI • D

    Sponsored 3/18/2025

  • McBath

    GA • D

    Sponsored 3/24/2025

  • Rep. Carey, Mike [R-OH-15]

    OH • R

    Sponsored 4/7/2025

  • Rep. Vindman, Eugene Simon [D-VA-7]

    VA • D

    Sponsored 9/9/2025

  • Rep. Vasquez, Gabe [D-NM-2]

    NM • D

    Sponsored 10/3/2025

Roll Call Votes

No roll call votes available for this bill.

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