Overview
Title
To amend the Internal Revenue Code of 1986 to deny the energy credit to property located on prime or unique farmland, as defined by the Secretary of Agriculture in part 657 of title 7, Code of Federal Regulations, if such property is used for generating solar energy.
ELI5 AI
The PANELS Act is like a new rule that says if someone wants to set up solar panels on really special farmland, they're not going to get a prize called an "energy credit." This rule helps make sure that special land is kept for growing food instead of making energy.
Summary AI
H.R. 1237, titled the “Protect Agriculture, Nutrients, and Essential Lands from Solar Act” or the “PANELS Act,” aims to amend the Internal Revenue Code of 1986. The bill proposes that the energy credit will not apply to properties located on prime or unique farmland if those properties are used for generating solar energy. It also clarifies the definitions of “prime farmland” and “unique farmland” as defined by the Secretary of Agriculture. These changes would take effect for any property placed in service after the enactment of the Act.
Published
Keywords AI
Sources
Bill Statistics
Size
Language
Complexity
AnalysisAI
The proposed legislation, H. R. 1237, known as the "Protect Agriculture, Nutrients, and Essential Lands from Solar Act" or the "PANELS Act," seeks to amend the Internal Revenue Code of 1986. The core aim of this bill is to prevent energy credits from being granted to properties located on what is termed as prime or unique farmland if these properties are used for generating solar energy. The definition of prime and unique farmland is as determined by the Secretary of Agriculture under the specific part of the Code of Federal Regulations.
General Summary of the Bill
This bill proposes to change how tax incentives for solar energy projects are applied, particularly regarding land classified as prime or unique farmland. Essentially, if a solar energy project is situated on such farmland, it would be excluded from receiving certain energy and electricity production credits under sections of the existing Internal Revenue Code. The bill will apply to all relevant properties that are put into service after its enactment, indicating a future-oriented approach to land use and energy policies.
Summary of Significant Issues
One of the main issues spotlighted by the bill is the potential discouragement of renewable energy development on prime or unique farmland. This could have substantial implications for energy policy, particularly in areas rich in agricultural resources, as it may deter solar investment on lands classified as prime for farming.
Furthermore, the bill's reliance on definitions found in external regulatory codes could pose challenges for understanding its exact implications. This necessitates additional effort by stakeholders to ascertain the specific lands affected, potentially complicating compliance and strategic planning for solar energy investors.
The complexity of the legislative language also presents a barrier to understanding for those unfamiliar with legislative or legal terminology. Amendments outlined in the bill use legalistic phrases that might not be readily accessible to the general public, which could hinder wide-ranging understanding and discussion.
Broad Public Impact
For the general public, this bill could impact how agricultural lands are utilized and perceived in the context of renewable energy development. The exclusion of prime and unique farmlands from receiving energy credits might align with interests to preserve agricultural productivity, but it could limit efforts to increase renewable energy sources nationally. As a result, the public might witness ongoing debates regarding land use priorities and the balance between agricultural needs and renewable energy goals.
Impact on Specific Stakeholders
Solar Energy Developers: The legislation is likely to have a negative impact on solar energy companies that may have identified prime or unique farmlands as viable sites for development. With the denial of energy credits in these cases, the financial viability of such projects may be substantially reduced.
Agricultural Stakeholders: For farmers and landowners, the bill might be seen positively as it could dissuade the repurposing of farmland for solar energy projects, thereby preserving it for agricultural use.
Environmental Advocates: This group might face mixed reactions. While they typically support renewable energy expansion, they might also appreciate the preservation of productive farmland. How this balance is struck could significantly inform their stance on the bill.
Overall, the bill creates a complex intersection of agricultural, energy, and environmental policies, requiring careful consideration by all involved sectors to understand the broader implications and navigate the path forward.
Issues
The exclusion of property located on prime or unique farmland from energy credits (Section 2) might significantly impact solar energy development in agricultural areas, potentially discouraging investments in renewable energy projects in these regions, which could influence national energy and agricultural policy debates.
The reliance on external definitions for 'prime farmland' and 'unique farmland' as outlined in Section 2 may complicate understanding and accessibility of the bill's impacts for the general public and stakeholders since these terms are defined in a separate regulatory code (Title 7, part 657 of the Code of Federal Regulations).
The detailed legislative language specifying amendments to the Internal Revenue Code (e.g., the insertion and striking of clauses) in Section 2 may be overly complex for laypersons, making it difficult for individuals without legal or legislative training to fully comprehend the changes and their potential implications.
Sections
Sections are presented as they are annotated in the original legislative text. Any missing headers, numbers, or non-consecutive order is due to the original text.
1. Short title Read Opens in new tab
Summary AI
The first section of this bill provides its short title, which is the "Protect Agriculture, Nutrients, and Essential Lands from Solar Act" or simply the "PANELS Act."
2. Credits amended to exclude property located on prime or unique farmland Read Opens in new tab
Summary AI
The text describes amendments to the Internal Revenue Code to exclude tax credits for properties and facilities used to generate solar energy if they are located on "prime farmland" or "unique farmland," as defined by federal regulations. These changes will apply to properties placed into service after the enactment of this law.