30% Tax Credit for Investment in Innovative Agricultural Technology
This bill establishes a new tax credit for farmers and businesses investing in advanced agricultural technologies, such as precision agriculture and controlled environment farming. The goal is to boost the efficiency of specialty crop production, potentially leading to more stable food supplies and lower consumer costs. Investors can claim 30% of qualified investment costs, encouraging modernization across the agricultural sector.
Key points
New Tax Credit: Establishes a 30% tax credit for investments in innovative agricultural technology projects (e.g., equipment, software, automation systems).
Scope of Investment: The credit applies to technologies primarily used for producing, storing, processing, and packaging specialty crops through precision agriculture or controlled environment agriculture (e.g., vertical farms).
Financial Benefit: Taxpayers can opt for a direct cash payment (elective payment) instead of a traditional tax deduction, which is beneficial for entities without sufficient tax liability.
Anti-Double Dipping Rule: The credit cannot be claimed for equipment purchased using certain federal grants (e.g., from the Farm Security Act) to prevent receiving double benefits.
Timeline and Application: The credit applies to property construction that began after January 1, 2023, and projects must be placed in service before December 31, 2035.
Expired
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