I
119THCONGRESS
1
STSESSION H. R. 1707
To amend the Internal Revenue Code of 1986 to establish a tax credit
to incentivize the purchase of American agricultural commodities.
IN THE HOUSE OF REPRESENTATIVES
FEBRUARY27, 2025
Mr. K
USTOFF(for himself, Mr. COSTA, Mr. ALFORD, Mr. ROUZER, and Mr.
C
AREY) introduced the following bill; which was referred to the Com-
mittee on Ways and Means
A BILL
To amend the Internal Revenue Code of 1986 to establish
a tax credit to incentivize the purchase of American
agricultural commodities.
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 ‘‘Grown in America Act 4
of 2025’’. 5
SEC. 2. DOMESTICALLY PRODUCED AGRICULTURE CREDIT. 6
(a) I
NGENERAL.—Subpart D of part IV of sub-7
chapter A of chapter 1 of the Internal Revenue Code of 8
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1986 is amended by adding at the end the following new 1
section: 2
‘‘SEC. 45BB. DOMESTICALLY PRODUCED AGRICULTURE 3
CREDIT. 4
‘‘(a) I
NGENERAL.—For purposes of section 38, the 5
domestically produced agriculture credit determined under 6
this section for any taxable year is an amount equal to 7
the lesser of— 8
‘‘(1)(A) the product of— 9
‘‘(B) 25 percent of the total agricultural input 10
costs of such taxpayer with respect to such taxable 11
year, multiplied by 12
‘‘(C) the applicable percentage of the taxpayer 13
for the taxable year, or 14
‘‘(2) $100,000,000. 15
‘‘(b) D
EFINITIONS.—For purposes of this section— 16
‘‘(1) A
PPLICABLE PERCENTAGE .—For purposes 17
of this section, the applicable percentage for a tax-18
payer for any taxable year is an amount (expressed 19
as a percentage) equal to the quotient of— 20
‘‘(A) the domestic agricultural input costs 21
of such taxpayer for such taxable year, divided 22
by 23
‘‘(B) the total agricultural input costs of 24
such taxpayer for such taxable year. 25
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‘‘(2) AGRICULTURAL COMMODITY .— 1
‘‘(A) I
N GENERAL.—The term ‘agricultural 2
commodity’ means a commodity specified in 3
subparagraph (B) that— 4
‘‘(i) is marketed for human consump-5
tion, or 6
‘‘(ii) is used in the production or man-7
ufacture of a product marketed for human 8
consumption. 9
‘‘(B) C
OMMODITIES SPECIFIED.—The com-10
modities described in this subparagraph are— 11
‘‘(i) The commodities described in 12
subparagraphs (A), (B) excluding live ani-13
mals, (C), and (E) of section 513 of the 14
Federal Agriculture Improvement and Re-15
form Act of 1996, and 16
‘‘(ii) the products of farm-raised fish 17
(as defined in section 1501 of the Agricul-18
tural Act of 2014). 19
‘‘(3) D
OMESTIC AGRICULTURAL INPUT 20
COSTS.—The term ‘domestic agricultural input 21
costs’ means any expenses paid or incurred by the 22
taxpayer during any taxable year to purchase agri-23
cultural commodities— 24
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‘‘(A) which are produced in the United 1
States, and 2
‘‘(B) which the taxpayer uses in the course 3
of the trade or business of the taxpayer to 4
produce products— 5
‘‘(i) in the United States, and 6
‘‘(ii) sold for human consumption 7
without further processing. 8
‘‘(4) F
OREIGN AGRICULTURAL INPUT COSTS .— 9
The term ‘foreign agricultural input costs’ means 10
any expenses paid or incurred by the taxpayer dur-11
ing any taxable year to purchase agricultural com-12
modities— 13
‘‘(A) which are produced outside the 14
United States, and 15
‘‘(B) which the taxpayer uses in the course 16
of the trade or business of the taxpayer to 17
produce products— 18
‘‘(i) in the United States, and 19
‘‘(ii) sold for human consumption 20
without further processing. 21
‘‘(5) T
OTAL AGRICULTURAL INPUT COSTS .— 22
‘‘(A) I
N GENERAL.—Subject to subpara-23
graph (B), the term ‘total agricultural input 24
costs’ means an amount equal to the sum of do-25
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mestic agricultural input costs and foreign agri-1
cultural input costs of the taxpayer for any tax-2
able year. 3
‘‘(B) E
XCEPTION.—The term ‘total agri-4
cultural input costs’ shall not include any ex-5
penses paid or incurred by the taxpayer during 6
the taxable year to purchase any agricultural 7
commodity identified and listed by the Sec-8
retary of Agriculture under section 2(c) of the 9
Grown in America Act of 2025. 10
‘‘(c) I
NELIGIBILITY FORCREDIT.— 11
‘‘(1) I
N GENERAL.—In the case of any taxpayer 12
for which the 3-year average applicable percentage 13
for any taxable year does not exceed the applicable 14
threshold, the amount of the credit allowed under 15
subsection (a) shall be reduced to zero for such tax-16
able year. 17
‘‘(2) A
PPLICABLE THRESHOLD .—For purposes 18
of this subsection, the term ‘applicable threshold’ 19
means— 20
‘‘(A) in the case of taxable years beginning 21
in 2026, 50 percent, 22
‘‘(B) in the case of taxable years beginning 23
in 2027, 55 percent, 24
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‘‘(C) in the case of taxable years beginning 1
in 2028, 60 percent, 2
‘‘(D) in the case of taxable years beginning 3
in 2029, 65 percent, 4
‘‘(E) in the case of taxable years beginning 5
in 2030, 70 percent. 6
‘‘(F) in the case of taxable years beginning 7
in 2031, 75 percent, 8
‘‘(G) in the case of taxable years beginning 9
in 2032, 80 percent, and 10
‘‘(H) in the case of taxable years beginning 11
after December 31, 2033, 85 percent. 12
‘‘(3) 3-
YEAR AVERAGE APPLICABLE PERCENT -13
AGE.—For purposes of this subsection, the term ‘3- 14
year average applicable percentage’ means, with re-15
spect to a taxpayer and any taxable year, the 16
amount (expressed as a percentage) equal that is 17
equal to the quotient of— 18
‘‘(A) the domestic agricultural input costs 19
of such taxpayer for the 3-year period ending 20
on the last day of such taxable year, divided by 21
‘‘(B) the total agricultural input costs of 22
such taxpayer for such 3-year period. 23
‘‘(d) C
OOPERATIVEORGANIZATIONS.— 24
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‘‘(1) APPORTIONMENT OF CREDIT .—In the case 1
of an eligible cooperative organization described in 2
paragraph (4), any portion of the credit determined 3
under subsection (a) for the taxable year may, at the 4
election of the organization, be apportioned among 5
patrons eligible to share in patronage dividends on 6
the basis of the quantity or value of business done 7
with or for such patrons for the taxable year. 8
‘‘(2) F
ORM AND EFFECT OF ELECTION .—An 9
election under subparagraph (A) for any taxable 10
year shall be made on a timely filed return for such 11
year. 12
‘‘(3) E
LECTION IRREVOCABLE .—An election 13
under subparagraph (A) shall be irrevocable for the 14
taxable year. 15
‘‘(4) T
REATMENT OF ORGANIZATIONS AND PA -16
TRONS.— 17
‘‘(A) O
RGANIZATIONS.—The amount of the 18
credit not apportioned to patrons pursuant to 19
paragraph (1) shall be included in the amount 20
determined under subsection (a) for the taxable 21
year of the eligible cooperative organization. 22
‘‘(B) P
ATRONS.—The amount of the credit 23
apportioned to patrons pursuant to paragraph 24
(1) shall be included in the amount determined 25
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under subsection (a) for the first taxable year 1
of each patron ending on or after the last day 2
of the payment period (as defined in section 3
1382(d)) for the taxable year of the eligible co-4
operative organization or, if earlier, for the tax-5
able year of each patron ending on or after the 6
date on which the patron receives notice from 7
such cooperative of the apportionment. 8
‘‘(5) S
PECIAL RULE.—If the amount of the 9
credit of an eligible cooperative organization deter-10
mined under subsection (a) for a taxable year is less 11
than the amount of such credit shown on the return 12
of the cooperative organization for such year, an 13
amount equal to the excess of— 14
‘‘(A) such reduction, over 15
‘‘(B) the amount not apportioned to such 16
patrons under subparagraph (A) for the taxable 17
year, 18
shall be treated as an increase in tax imposed by 19
this chapter on such organization. Such increase 20
shall not be treated as a tax imposed by this chapter 21
for purposes of determining the amount of any cred-22
it under this chapter. 23
‘‘(6) E
LIGIBLE COOPERATIVE ORGANIZATION .— 24
For purposes of this subsection, the term ‘eligible 25
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cooperative organization’ has the meaning given to 1
the term ‘specified agricultural or horticultural coop-2
erative’ in section 199A(g)(4). 3
‘‘(e) A
GGREGATIONRULE.—All persons which are 4
treated as a single employer under subsections (a) and (b) 5
of section 52 shall be treated as a single taxpayer for pur-6
poses of this section. 7
‘‘(f) R
EGULATIONS.—The Secretary may prescribe 8
such regulations and other guidance as may be necessary 9
or appropriate to carry out this section.’’. 10
(b) C
REDITALLOWED ASPART OFGENERALBUSI-11
NESSCREDIT.— 12
(1) I
N GENERAL.—Section 38(b) of such Code 13
is amended by adding at the end the following new 14
paragraph: 15
‘‘(42) the domestically produced agriculture 16
credit determined under section 45U(a).’’. 17
(2) L
IMITATIONS.—Section 38(c) of such Code 18
is amended by adding at the end the following new 19
paragraph: 20
‘‘(7) S
PECIAL RULES FOR DOMESTICALLY PRO -21
DUCED AGRICULTURE CREDIT .—In the case of the 22
portion of the credit determined under subsection 23
(a) which is attributable to the domestically pro-24
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duced agriculture credit determined under section 1
45BB— 2
‘‘(A) this section and section 39 shall be 3
applied separately with respect to such credit, 4
‘‘(B) in applying paragraph (1) to such 5
credit— 6
‘‘(i) for purposes of subparagraph (A) 7
thereof, the tentative minimum tax shall be 8
treated as being zero, 9
‘‘(ii) for purposes of subparagraph 10
(B) thereof, such subparagraph shall be 11
applied— 12
‘‘(I) by substituting ‘50 percent’ 13
for ‘25 percent’, and 14
‘‘(II) by substituting ‘$0’ for 15
‘$25,000’, and 16
‘‘(iii) the limitation under paragraph 17
(1) (as modified by clause (ii)) shall be re-18
duced by the credit allowed under sub-19
section (a) for the taxable year (other than 20
the domestically produced agriculture cred-21
it), and 22
‘‘(C) with respect to the application of sec-23
tion 39, subsection (a) of such section shall be 24
applied— 25
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‘‘(i) in paragraphs (1)(B) and (2)(B) 1
thereof, by substituting ‘10 taxable years’ 2
for ‘20 taxable years’ each place it ap-3
pears, and 4
‘‘(ii) in paragraph (2)(A), by sub-5
stituting ‘11 taxable years’ for ‘21 taxable 6
years’.’’. 7
(c) D
OMESTICALLYUNAVAILABLEAGRICULTURAL 8
C
OMMODITIES.—For purposes of section 45BB of such 9
Code, the Secretary of Agriculture shall establish and 10
maintain a list that identifies, with respect to each cal-11
endar year beginning after the date of enactment of this 12
Act, the agricultural commodities (as defined in subsection 13
(b)(2) of such section) that cannot feasibly be produced, 14
grown, or raised domestically during such calendar year. 15
(d) C
LERICALAMENDMENT.—The table of sections 16
for subpart D of part IV of subchapter A of chapter 1 17
of such Code is amended by adding at the end the fol-18
lowing new item: 19
‘‘Sec. 45BB. Domestically produced agriculture credit.’’.
(e) EFFECTIVEDATE.—The amendments made by 20
this section shall apply to taxable years beginning after 21
December 31, 2025. 22
Æ
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