I
119THCONGRESS
1
STSESSION H. R. 1705
To amend the Internal Revenue Code of 1986 to establish a credit for
investments in innovative agricultural technology.
IN THE HOUSE OF REPRESENTATIVES
FEBRUARY27, 2025
Mr. K
ELLYof Pennsylvania (for himself, Mr. THOMPSONof California, Mr.
M
ILLERof Ohio, Mr. PANETTA, Ms. TENNEY, Mr. RILEYof New York,
Mr. L
AMALFA, Mrs. HAYES, Ms. BYNUM, Mr. MORAN, Mr. VALADAO,
and Mr. H
ARDERof California) introduced the following bill; which was
referred to the Committee on Ways and Means
A BILL
To amend the Internal Revenue Code of 1986 to establish
a credit for investments in innovative agricultural technology.
Be it enacted by the Senate and House of Representa-1
tives of the United States of America in Congress assembled, 2
SECTION 1. SHORT TITLE. 3
This Act may be cited as the ‘‘Supporting Innovation 4
in Agriculture Act of 2025’’. 5
SEC. 2. CREDIT FOR INVESTMENT IN INNOVATIVE AGRI-6
CULTURAL TECHNOLOGY. 7
(a) I
NGENERAL.—Subpart E of part IV of sub-8
chapter A of chapter 1 of the Internal Revenue Code of 9
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1986 is amended by inserting after section 48E the fol-1
lowing new section: 2
‘‘SEC. 48F. INNOVATIVE AGRICULTURAL TECHNOLOGY IN-3
VESTMENT CREDIT. 4
‘‘(a) I
NGENERAL.—For purposes of section 46, the 5
innovative agricultural technology investment credit for 6
any taxable year is an amount equal to 30 percent of the 7
qualified investment for such taxable year with respect to 8
any innovative agricultural technology project. 9
‘‘(b) Q
UALIFIEDINVESTMENT.— 10
‘‘(1) I
N GENERAL.—For purposes of subsection 11
(a), the qualified investment with respect to any in-12
novative agricultural technology project for any tax-13
able year is the basis of any qualified property 14
placed in service by the taxpayer during such taxable 15
year which is part of an innovative agricultural tech-16
nology project. 17
‘‘(2) Q
UALIFIED PROPERTY.—For purposes of 18
this section, the term ‘qualified property’ means 19
property— 20
‘‘(A) which is— 21
‘‘(i) tangible personal property, wheth-22
er or not affixed to real property (including 23
equipment, systems and their components, 24
materials, machinery, accessories, and 25
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structural components), which is used as 1
an integral part of an innovative agricul-2
tural technology project, or 3
‘‘(ii) software, a computer system, or 4
similar technology, 5
‘‘(B) with respect to which depreciation (or 6
amortization in lieu of depreciation) is allow-7
able, and 8
‘‘(C)(i) the construction, reconstruc-9
tion, or erection of which is completed by 10
the taxpayer, or 11
‘‘(ii) which is acquired by the 12
taxpayer if the original use of such 13
property commences with the tax-14
payer. 15
‘‘(3) I
NNOVATIVE AGRICULTURAL TECHNOLOGY 16
PROJECT.—The term ‘innovative agricultural tech-17
nology project’ means an agricultural technology or 18
system— 19
‘‘(A) which is placed in service before De-20
cember 31, 2035, and 21
‘‘(B) for which the primary purpose is to 22
produce, store, process, and package specialty 23
crops (as defined in section 3 of the Specialty 24
Crops Competitiveness Act of 2004) using— 25
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‘‘(i) precision agriculture, or 1
‘‘(ii) controlled environment agri-2
culture. 3
‘‘(c) S
PECIALRULES.— 4
‘‘(1) C
ERTAIN PROCESS EXPENDITURE RULES 5
MADE APPLICABLE.—Rules similar to the rules of 6
subsections (c)(4) and (d) of section 46 (as in effect 7
on the day before the date of the enactment of the 8
Revenue Reconciliation Act of 1990) shall apply for 9
purposes of subsection (a). 10
‘‘(2) D
ENIAL OF DOUBLE BENEFIT UNDER 11
GRANT PROGRAMS .—Rules similar to the rules of 12
section 48(d) shall apply for purposes of this section 13
with respect to— 14
‘‘(A) any renewable energy system, energy 15
efficiency improvement, or equipment or system 16
purchased, made, or installed using a grant 17
provided under section 9007(c) of the Farm Se-18
curity and Rural Investment Act of 2002 (7 19
U.S.C. 8107(c)), or 20
‘‘(B) any physical improvement to land 21
made using a payment provided under the envi-22
ronmental quality incentives program estab-23
lished under subchapter A of chapter 4 of sub-24
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title D of title XII of the Food Security Act of 1
1985 (16 U.S.C. 3839aa et seq.). 2
‘‘(d) D
EFINITIONS.—In this section— 3
‘‘(1) C
ONTROLLED ENVIRONMENT AGRI -4
CULTURE.—The term ‘controlled environment agri-5
culture’ means a closed, indoor agricultural produc-6
tion system using controlled environment agriculture 7
technology in which the environment and inputs can 8
be controlled throughout the lifecycle of a crop. 9
‘‘(2) C
ONTROLLED ENVIRONMENT AGRI -10
CULTURE TECHNOLOGY .—The term ‘controlled envi-11
ronment agriculture technology’ means any tech-12
nology (including equipment, systems and their com-13
ponents, materials, and accessories that are nec-14
essary for the deployment of such technology) that 15
is required to create, support, and maintain the nec-16
essary growing environment for plants and directly 17
contributes to the efficient production, harvesting, 18
processing, or packaging of agricultural products 19
and goods, including— 20
‘‘(A) heating, cooling, thermal screening, 21
humidification, dehumidification, and air cir-22
culation systems, 23
‘‘(B) horticultural lighting systems and 24
glazing materials, 25
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‘‘(C) irrigation and water treatment and 1
filtration systems, 2
‘‘(D) nutrient delivery and management, 3
‘‘(E) sensors and vision systems for gath-4
ering data within a commercial controlled envi-5
ronment agricultural facility, 6
‘‘(F) software, including data management 7
software, advanced analytics, machine learning 8
systems and artificial intelligence systems, de-9
signed as part of or sold in connection with con-10
trolled environment agriculture technology, 11
‘‘(G) robotics, conveyance, and automation 12
systems, including automated storage and re-13
trieval equipment, 14
‘‘(H) automatic harvesting, seeding, trans-15
planting, and sanitation systems, and 16
‘‘(I) any other technology, as determined 17
by the Secretary, that contributes to the effi-18
cient production, harvesting, processing, or 19
packaging of agricultural products and goods in 20
commercial controlled environment agricultural 21
facilities. 22
‘‘(3) P
RECISION AGRICULTURE .—The term 23
‘precision agriculture’ means the use of on-farm pre-24
cision agriculture technology in— 25
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‘‘(A) managing, tracking, or reducing crop 1
production inputs, including seed, land, fer-2
tilizer, chemicals, water, and time, 3
‘‘(B) optimizing weed, pest, and disease 4
identification, 5
‘‘(C) managing and tracking crop harvest 6
and on-farm storage at a heightened level of 7
spatial and temporal granularity to improve ef-8
ficiencies, reduce waste, and maintain environ-9
mental quality, and 10
‘‘(D) improving on-farm water conserva-11
tion and irrigation efficiency. 12
‘‘(4) P
RECISION AGRICULTURE TECHNOLOGY .— 13
The term ‘precision agriculture technology’ means 14
any technology (including equipment that is nec-15
essary for the deployment of such technology) that 16
directly contributes to a reduction in, or improved 17
efficiency of, inputs used in specialty crop produc-18
tion, harvesting, and on-farm storage including— 19
‘‘(A) Global Positioning System-based or 20
geospatial mapping, 21
‘‘(B) satellite or aerial imagery, 22
‘‘(C) yield monitors, 23
‘‘(D) soil mapping, 24
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‘‘(E) non-chemical weed and pest control 1
technologies, including autonomous laser weed-2
ers, 3
‘‘(F) vision systems, remote sensors, and 4
temperature and soil moisture monitors, 5
‘‘(G) internet of things and telematics 6
technologies, 7
‘‘(H) software, including data manage-8
ment, advanced analytics, machine learning, 9
and artificial intelligence systems, designed as 10
part of or sold in connection with other preci-11
sion agriculture technology, 12
‘‘(I) network connectivity products and so-13
lutions, 14
‘‘(J) Global Positioning System guidance 15
or auto-steer systems, 16
‘‘(K) variable rate technology for applying 17
inputs, such as section control, 18
‘‘(L) robotics, 19
‘‘(M) uncrewed aircraft systems and 20
uncrewed ground vehicles, and 21
‘‘(N) any other technology, as determined 22
by the Secretary, that leads to a reduction in, 23
or improves efficiency of, inputs used in crop 24
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production and harvesting, which may include 1
seed, fertilizer, chemicals, water, and time.’’. 2
(b) E
LECTIVEPAYMENT OFCREDIT.—Section 6417 3
of such Code is amended— 4
(1) in subsection (b), by adding at the end the 5
following: 6
‘‘(13) The innovative agricultural technology in-7
vestment credit under section 48F.’’, and 8
(2) in subsection (d)(1)— 9
(A) in subparagraph (E), by striking ‘‘(C), 10
or (D)’’ each place such term appears and in-11
serting ‘‘(C), (D), or (E)’’, 12
(B) by redesignating subparagraph (E) (as 13
amended by clause (i)) as subparagraph (F), 14
and 15
(C) by inserting after subparagraph (D) 16
the following: 17
‘‘(E) E
LECTION WITH RESPECT TO INNO -18
VATIVE AGRICULTURAL TECHNOLOGY INVEST -19
MENT CREDIT.—If a taxpayer other than an en-20
tity described in subparagraph (A) makes an 21
election under this subparagraph with respect 22
to any taxable year in which such taxpayer has, 23
after December 31, 2023, placed in service 24
qualified property which is part of an innovative 25
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agricultural technology project (as defined in 1
section 48F(b)), such taxpayer shall be treated 2
as an applicable entity for purposes of this sec-3
tion for such taxable year, but only with respect 4
to the credit described in subsection (b)(13).’’. 5
(c) T
RANSFERABILITY.—Section 6418(f)(1)(A) of 6
such Code is amended by adding at the end the following 7
new clause: 8
‘‘(xii) The innovative agricultural 9
technology investment credit determined 10
under section 48F.’’. 11
(d) C
ONFORMINGAMENDMENTS.— 12
(1) Section 46 of such Code is amended— 13
(A) in paragraph (6), by striking ‘‘and’’ at 14
the end, 15
(B) in paragraph (7), by striking the pe-16
riod at the end and inserting ‘‘, and’’, and 17
(C) by adding at the end the following new 18
paragraph: 19
‘‘(8) the innovative agricultural technology in-20
vestment credit.’’. 21
(2) Section 49(a)(1)(C) of such Code is amend-22
ed— 23
(A) in clause (vii), by striking ‘‘and’’ at the 24
end, 25
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(B) in clause (viii), by striking the period 1
at the end and inserting ‘‘, and’’, and 2
(C) by adding at the end the following new 3
clause: 4
‘‘(ix) the basis of any qualified prop-5
erty which is part of an innovative agricul-6
tural technology project under section 7
48F.’’. 8
(3) Section 50(a)(2)(E) of such Code is amend-9
ed by striking ‘‘or 48E(e)’’ and inserting ‘‘48E(e), 10
or 48F(c)(1)’’. 11
(4) The table of sections for subpart E of part 12
IV of subchapter A of chapter 1 of such Code is 13
amended by inserting after the item relating to sec-14
tion 48E the following new item: 15
‘‘Sec. 48F. Innovative agricultural technology investment credit.’’.
(e) EFFECTIVEDATE.—The amendments made by 16
this section shall apply to property the construction of 17
which began after January 1, 2025. 18
Æ
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