Us Congress 2025-2026 Regular Session

Us Congress House Bill HB1707 Compare Versions

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Old	New	Differences
1	1	I
2	2	119THCONGRESS
3	3	1
4	4	STSESSION H. R. 1707
5	5	To amend the Internal Revenue Code of 1986 to establish a tax credit
6	6	to incentivize the purchase of American agricultural commodities.
7	7	IN THE HOUSE OF REPRESENTATIVES
8	8	FEBRUARY27, 2025
9	9	Mr. K
10	10	USTOFF(for himself, Mr. COSTA, Mr. ALFORD, Mr. ROUZER, and Mr.
11	11	C
12	12	AREY) introduced the following bill; which was referred to the Com-
13	13	mittee on Ways and Means
14	14	A BILL
15	15	To amend the Internal Revenue Code of 1986 to establish
16	16	a tax credit to incentivize the purchase of American
17	17	agricultural commodities.
18	18	Be it enacted by the Senate and House of Representa-1
19	19	tives of the United States of America in Congress assembled, 2
20	20	SECTION 1. SHORT TITLE. 3
21	21	This Act may be cited as the ‘‘Grown in America Act 4
22	22	of 2025’’. 5
23	23	SEC. 2. DOMESTICALLY PRODUCED AGRICULTURE CREDIT. 6
24	24	(a) I
25	25	NGENERAL.—Subpart D of part IV of sub-7
26	26	chapter A of chapter 1 of the Internal Revenue Code of 8
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30	30	1986 is amended by adding at the end the following new 1
31	31	section: 2
32	32	‘‘SEC. 45BB. DOMESTICALLY PRODUCED AGRICULTURE 3
33	33	CREDIT. 4
34	34	‘‘(a) I
35	35	NGENERAL.—For purposes of section 38, the 5
36	36	domestically produced agriculture credit determined under 6
37	37	this section for any taxable year is an amount equal to 7
38	38	the lesser of— 8
39	39	‘‘(1)(A) the product of— 9
40	40	‘‘(B) 25 percent of the total agricultural input 10
41	41	costs of such taxpayer with respect to such taxable 11
42	42	year, multiplied by 12
43	43	‘‘(C) the applicable percentage of the taxpayer 13
44	44	for the taxable year, or 14
45	45	‘‘(2) $100,000,000. 15
46	46	‘‘(b) D
47	47	EFINITIONS.—For purposes of this section— 16
48	48	‘‘(1) A
49	49	PPLICABLE PERCENTAGE .—For purposes 17
50	50	of this section, the applicable percentage for a tax-18
51	51	payer for any taxable year is an amount (expressed 19
52	52	as a percentage) equal to the quotient of— 20
53	53	‘‘(A) the domestic agricultural input costs 21
54	54	of such taxpayer for such taxable year, divided 22
55	55	by 23
56	56	‘‘(B) the total agricultural input costs of 24
57	57	such taxpayer for such taxable year. 25
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61	61	‘‘(2) AGRICULTURAL COMMODITY .— 1
62	62	‘‘(A) I
63	63	N GENERAL.—The term ‘agricultural 2
64	64	commodity’ means a commodity specified in 3
65	65	subparagraph (B) that— 4
66	66	‘‘(i) is marketed for human consump-5
67	67	tion, or 6
68	68	‘‘(ii) is used in the production or man-7
69	69	ufacture of a product marketed for human 8
70	70	consumption. 9
71	71	‘‘(B) C
72	72	OMMODITIES SPECIFIED.—The com-10
73	73	modities described in this subparagraph are— 11
74	74	‘‘(i) The commodities described in 12
75	75	subparagraphs (A), (B) excluding live ani-13
76	76	mals, (C), and (E) of section 513 of the 14
77	77	Federal Agriculture Improvement and Re-15
78	78	form Act of 1996, and 16
79	79	‘‘(ii) the products of farm-raised fish 17
80	80	(as defined in section 1501 of the Agricul-18
81	81	tural Act of 2014). 19
82	82	‘‘(3) D
83	83	OMESTIC AGRICULTURAL INPUT 20
84	84	COSTS.—The term ‘domestic agricultural input 21
85	85	costs’ means any expenses paid or incurred by the 22
86	86	taxpayer during any taxable year to purchase agri-23
87	87	cultural commodities— 24
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91	91	‘‘(A) which are produced in the United 1
92	92	States, and 2
93	93	‘‘(B) which the taxpayer uses in the course 3
94	94	of the trade or business of the taxpayer to 4
95	95	produce products— 5
96	96	‘‘(i) in the United States, and 6
97	97	‘‘(ii) sold for human consumption 7
98	98	without further processing. 8
99	99	‘‘(4) F
100	100	OREIGN AGRICULTURAL INPUT COSTS .— 9
101	101	The term ‘foreign agricultural input costs’ means 10
102	102	any expenses paid or incurred by the taxpayer dur-11
103	103	ing any taxable year to purchase agricultural com-12
104	104	modities— 13
105	105	‘‘(A) which are produced outside the 14
106	106	United States, and 15
107	107	‘‘(B) which the taxpayer uses in the course 16
108	108	of the trade or business of the taxpayer to 17
109	109	produce products— 18
110	110	‘‘(i) in the United States, and 19
111	111	‘‘(ii) sold for human consumption 20
112	112	without further processing. 21
113	113	‘‘(5) T
114	114	OTAL AGRICULTURAL INPUT COSTS .— 22
115	115	‘‘(A) I
116	116	N GENERAL.—Subject to subpara-23
117	117	graph (B), the term ‘total agricultural input 24
118	118	costs’ means an amount equal to the sum of do-25
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122	122	mestic agricultural input costs and foreign agri-1
123	123	cultural input costs of the taxpayer for any tax-2
124	124	able year. 3
125	125	‘‘(B) E
126	126	XCEPTION.—The term ‘total agri-4
127	127	cultural input costs’ shall not include any ex-5
128	128	penses paid or incurred by the taxpayer during 6
129	129	the taxable year to purchase any agricultural 7
130	130	commodity identified and listed by the Sec-8
131	131	retary of Agriculture under section 2(c) of the 9
132	132	Grown in America Act of 2025. 10
133	133	‘‘(c) I
134	134	NELIGIBILITY FORCREDIT.— 11
135	135	‘‘(1) I
136	136	N GENERAL.—In the case of any taxpayer 12
137	137	for which the 3-year average applicable percentage 13
138	138	for any taxable year does not exceed the applicable 14
139	139	threshold, the amount of the credit allowed under 15
140	140	subsection (a) shall be reduced to zero for such tax-16
141	141	able year. 17
142	142	‘‘(2) A
143	143	PPLICABLE THRESHOLD .—For purposes 18
144	144	of this subsection, the term ‘applicable threshold’ 19
145	145	means— 20
146	146	‘‘(A) in the case of taxable years beginning 21
147	147	in 2026, 50 percent, 22
148	148	‘‘(B) in the case of taxable years beginning 23
149	149	in 2027, 55 percent, 24
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153	153	‘‘(C) in the case of taxable years beginning 1
154	154	in 2028, 60 percent, 2
155	155	‘‘(D) in the case of taxable years beginning 3
156	156	in 2029, 65 percent, 4
157	157	‘‘(E) in the case of taxable years beginning 5
158	158	in 2030, 70 percent. 6
159	159	‘‘(F) in the case of taxable years beginning 7
160	160	in 2031, 75 percent, 8
161	161	‘‘(G) in the case of taxable years beginning 9
162	162	in 2032, 80 percent, and 10
163	163	‘‘(H) in the case of taxable years beginning 11
164	164	after December 31, 2033, 85 percent. 12
165	165	‘‘(3) 3-
166	166	YEAR AVERAGE APPLICABLE PERCENT -13
167	167	AGE.—For purposes of this subsection, the term ‘3- 14
168	168	year average applicable percentage’ means, with re-15
169	169	spect to a taxpayer and any taxable year, the 16
170	170	amount (expressed as a percentage) equal that is 17
171	171	equal to the quotient of— 18
172	172	‘‘(A) the domestic agricultural input costs 19
173	173	of such taxpayer for the 3-year period ending 20
174	174	on the last day of such taxable year, divided by 21
175	175	‘‘(B) the total agricultural input costs of 22
176	176	such taxpayer for such 3-year period. 23
177	177	‘‘(d) C
178	178	OOPERATIVEORGANIZATIONS.— 24
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182	182	‘‘(1) APPORTIONMENT OF CREDIT .—In the case 1
183	183	of an eligible cooperative organization described in 2
184	184	paragraph (4), any portion of the credit determined 3
185	185	under subsection (a) for the taxable year may, at the 4
186	186	election of the organization, be apportioned among 5
187	187	patrons eligible to share in patronage dividends on 6
188	188	the basis of the quantity or value of business done 7
189	189	with or for such patrons for the taxable year. 8
190	190	‘‘(2) F
191	191	ORM AND EFFECT OF ELECTION .—An 9
192	192	election under subparagraph (A) for any taxable 10
193	193	year shall be made on a timely filed return for such 11
194	194	year. 12
195	195	‘‘(3) E
196	196	LECTION IRREVOCABLE .—An election 13
197	197	under subparagraph (A) shall be irrevocable for the 14
198	198	taxable year. 15
199	199	‘‘(4) T
200	200	REATMENT OF ORGANIZATIONS AND PA -16
201	201	TRONS.— 17
202	202	‘‘(A) O
203	203	RGANIZATIONS.—The amount of the 18
204	204	credit not apportioned to patrons pursuant to 19
205	205	paragraph (1) shall be included in the amount 20
206	206	determined under subsection (a) for the taxable 21
207	207	year of the eligible cooperative organization. 22
208	208	‘‘(B) P
209	209	ATRONS.—The amount of the credit 23
210	210	apportioned to patrons pursuant to paragraph 24
211	211	(1) shall be included in the amount determined 25
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214	214	•HR 1707 IH
215	215	under subsection (a) for the first taxable year 1
216	216	of each patron ending on or after the last day 2
217	217	of the payment period (as defined in section 3
218	218	1382(d)) for the taxable year of the eligible co-4
219	219	operative organization or, if earlier, for the tax-5
220	220	able year of each patron ending on or after the 6
221	221	date on which the patron receives notice from 7
222	222	such cooperative of the apportionment. 8
223	223	‘‘(5) S
224	224	PECIAL RULE.—If the amount of the 9
225	225	credit of an eligible cooperative organization deter-10
226	226	mined under subsection (a) for a taxable year is less 11
227	227	than the amount of such credit shown on the return 12
228	228	of the cooperative organization for such year, an 13
229	229	amount equal to the excess of— 14
230	230	‘‘(A) such reduction, over 15
231	231	‘‘(B) the amount not apportioned to such 16
232	232	patrons under subparagraph (A) for the taxable 17
233	233	year, 18
234	234	shall be treated as an increase in tax imposed by 19
235	235	this chapter on such organization. Such increase 20
236	236	shall not be treated as a tax imposed by this chapter 21
237	237	for purposes of determining the amount of any cred-22
238	238	it under this chapter. 23
239	239	‘‘(6) E
240	240	LIGIBLE COOPERATIVE ORGANIZATION .— 24
241	241	For purposes of this subsection, the term ‘eligible 25
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245	245	cooperative organization’ has the meaning given to 1
246	246	the term ‘specified agricultural or horticultural coop-2
247	247	erative’ in section 199A(g)(4). 3
248	248	‘‘(e) A
249	249	GGREGATIONRULE.—All persons which are 4
250	250	treated as a single employer under subsections (a) and (b) 5
251	251	of section 52 shall be treated as a single taxpayer for pur-6
252	252	poses of this section. 7
253	253	‘‘(f) R
254	254	EGULATIONS.—The Secretary may prescribe 8
255	255	such regulations and other guidance as may be necessary 9
256	256	or appropriate to carry out this section.’’. 10
257	257	(b) C
258	258	REDITALLOWED ASPART OFGENERALBUSI-11
259	259	NESSCREDIT.— 12
260	260	(1) I
261	261	N GENERAL.—Section 38(b) of such Code 13
262	262	is amended by adding at the end the following new 14
263	263	paragraph: 15
264	264	‘‘(42) the domestically produced agriculture 16
265	265	credit determined under section 45U(a).’’. 17
266	266	(2) L
267	267	IMITATIONS.—Section 38(c) of such Code 18
268	268	is amended by adding at the end the following new 19
269	269	paragraph: 20
270	270	‘‘(7) S
271	271	PECIAL RULES FOR DOMESTICALLY PRO -21
272	272	DUCED AGRICULTURE CREDIT .—In the case of the 22
273	273	portion of the credit determined under subsection 23
274	274	(a) which is attributable to the domestically pro-24
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277	277	•HR 1707 IH
278	278	duced agriculture credit determined under section 1
279	279	45BB— 2
280	280	‘‘(A) this section and section 39 shall be 3
281	281	applied separately with respect to such credit, 4
282	282	‘‘(B) in applying paragraph (1) to such 5
283	283	credit— 6
284	284	‘‘(i) for purposes of subparagraph (A) 7
285	285	thereof, the tentative minimum tax shall be 8
286	286	treated as being zero, 9
287	287	‘‘(ii) for purposes of subparagraph 10
288	288	(B) thereof, such subparagraph shall be 11
289	289	applied— 12
290	290	‘‘(I) by substituting ‘50 percent’ 13
291	291	for ‘25 percent’, and 14
292	292	‘‘(II) by substituting ‘$0’ for 15
293	293	‘$25,000’, and 16
294	294	‘‘(iii) the limitation under paragraph 17
295	295	(1) (as modified by clause (ii)) shall be re-18
296	296	duced by the credit allowed under sub-19
297	297	section (a) for the taxable year (other than 20
298	298	the domestically produced agriculture cred-21
299	299	it), and 22
300	300	‘‘(C) with respect to the application of sec-23
301	301	tion 39, subsection (a) of such section shall be 24
302	302	applied— 25
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306	306	‘‘(i) in paragraphs (1)(B) and (2)(B) 1
307	307	thereof, by substituting ‘10 taxable years’ 2
308	308	for ‘20 taxable years’ each place it ap-3
309	309	pears, and 4
310	310	‘‘(ii) in paragraph (2)(A), by sub-5
311	311	stituting ‘11 taxable years’ for ‘21 taxable 6
312	312	years’.’’. 7
313	313	(c) D
314	314	OMESTICALLYUNAVAILABLEAGRICULTURAL 8
315	315	C
316	316	OMMODITIES.—For purposes of section 45BB of such 9
317	317	Code, the Secretary of Agriculture shall establish and 10
318	318	maintain a list that identifies, with respect to each cal-11
319	319	endar year beginning after the date of enactment of this 12
320	320	Act, the agricultural commodities (as defined in subsection 13
321	321	(b)(2) of such section) that cannot feasibly be produced, 14
322	322	grown, or raised domestically during such calendar year. 15
323	323	(d) C
324	324	LERICALAMENDMENT.—The table of sections 16
325	325	for subpart D of part IV of subchapter A of chapter 1 17
326	326	of such Code is amended by adding at the end the fol-18
327	327	lowing new item: 19
328	328	‘‘Sec. 45BB. Domestically produced agriculture credit.’’.
329	329	(e) EFFECTIVEDATE.—The amendments made by 20
330	330	this section shall apply to taxable years beginning after 21
331	331	December 31, 2025. 22
332	332	Æ
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