[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[H.R. 9263 Introduced in House (IH)]
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118th CONGRESS
2d Session
H. R. 9263
To amend the Internal Revenue Code of 1986 to establish a credit for
investments in innovative agricultural technology.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
August 2, 2024
Mr. Kelly of Pennsylvania (for himself and Mr. Thompson of 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 Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Supporting Innovation in Agriculture
Act of 2024''.
SEC. 2. CREDIT FOR INVESTMENT IN INNOVATIVE AGRICULTURAL TECHNOLOGY.
(a) In General.--Subpart E of part IV of subchapter A of chapter 1
of the Internal Revenue Code of 1986 is amended by inserting after
section 48E the following new section:
``SEC. 48F. INNOVATIVE AGRICULTURAL TECHNOLOGY INVESTMENT CREDIT.
``(a) In General.--For purposes of section 46, the innovative
agricultural technology investment credit for any taxable year is an
amount equal to 30 percent of the qualified investment for such taxable
year with respect to any innovative agricultural technology project.
``(b) Qualified Investment.--
``(1) In general.--For purposes of subsection (a), the
qualified investment with respect to any innovative
agricultural technology project for any taxable year is the
basis of any qualified property placed in service by the
taxpayer during such taxable year which is part of an
innovative agricultural technology project.
``(2) Qualified property.--For purposes of this section,
the term `qualified property' means property--
``(A) which is--
``(i) tangible personal property, whether
or not affixed to real property (including
equipment, systems and their components,
materials, machinery, accessories, and
structural components), which is used as an
integral part of an innovative agricultural
technology project, or
``(ii) software, a computer system, or
similar technology,
``(B) with respect to which depreciation (or
amortization in lieu of depreciation) is allowable, and
``(C)(i) the construction, reconstruction,
or erection of which is completed by the
taxpayer, or
``(ii) which is acquired by the taxpayer if
the original use of such property commences
with the taxpayer.
``(3) Innovative agricultural technology project.--The term
`innovative agricultural technology project' means an
agricultural technology or system--
``(A) which is placed in service before December
31, 2035, and
``(B) for which the primary purpose is to produce,
store, process, and package specialty crops (as defined
in section 3 of the Specialty Crops Competitiveness Act
of 2004) using--
``(i) precision agriculture, or
``(ii) controlled environment agriculture.
``(c) Special Rules.--
``(1) Certain process expenditure rules made applicable.--
Rules similar to the rules of subsections (c)(4) and (d) of
section 46 (as in effect on the day before the date of the
enactment of the Revenue Reconciliation Act of 1990) shall
apply for purposes of subsection (a).
``(2) Denial of double benefit under grant programs.--Rules
similar to the rules of section 48(d) shall apply for purposes
of this section with respect to--
``(A) any renewable energy system, energy
efficiency improvement, or equipment or system
purchased, made, or installed using a grant provided
under section 9007(c) of the Farm Security and Rural
Investment Act of 2002 (7 U.S.C. 8107(c)), or
``(B) any physical improvement to land made using a
payment provided under the environmental quality
incentives program established under subchapter A of
chapter 4 of subtitle D of title XII of the Food
Security Act of 1985 (16 U.S.C. 3839aa et seq.).
``(d) Definitions.--In this section--
``(1) Controlled environment agriculture.--The term
`controlled environment agriculture' means a closed, indoor
agricultural production system using controlled environment
agriculture technology in which the environment and inputs can
be controlled throughout the lifecycle of a crop.
``(2) Controlled environment agriculture technology.--The
term `controlled environment agriculture technology' means any
technology (including equipment, systems and their components,
materials, and accessories that are necessary for the
deployment of such technology) that is required to create,
support, and maintain the necessary growing environment for
plants and directly contributes to the efficient production,
harvesting, processing, or packaging of agricultural products
and goods, including--
``(A) heating, cooling, thermal screening,
humidification, dehumidification, and air circulation
systems,
``(B) horticultural lighting systems and glazing
materials,
``(C) irrigation and water treatment and filtration
systems,
``(D) nutrient delivery and management,
``(E) sensors and vision systems for gathering data
within a commercial controlled environment agricultural
facility,
``(F) software, including data management software,
advanced analytics, machine learning systems and
artificial intelligence systems, designed as part of or
sold in connection with controlled environment
agriculture technology,
``(G) robotics, conveyance, and automation systems,
including automated storage and retrieval equipment,
``(H) automatic harvesting, seeding, transplanting,
and sanitation systems, and
``(I) any other technology, as determined by the
Secretary, that contributes to the efficient
production, harvesting, processing, or packaging of
agricultural products and goods in commercial
controlled environment agricultural facilities.
``(3) Precision agriculture.--The term `precision
agriculture' means the use of on-farm precision agriculture
technology in--
``(A) managing, tracking, or reducing crop
production inputs, including seed, land, fertilizer,
chemicals, water, and time,
``(B) optimizing weed, pest, and disease
identification,
``(C) managing and tracking crop harvest and on-
farm storage at a heightened level of spatial and
temporal granularity to improve efficiencies, reduce
waste, and maintain environmental quality, and
``(D) improving on-farm water conservation and
irrigation efficiency.
``(4) Precision agriculture technology.--The term
`precision agriculture technology' means any technology
(including equipment that is necessary for the deployment of
such technology) that directly contributes to a reduction in,
or improved efficiency of, inputs used in specialty crop
production, harvesting, and on-farm storage including--
``(A) Global Positioning System-based or geospatial
mapping,
``(B) satellite or aerial imagery,
``(C) yield monitors,
``(D) soil mapping,
``(E) non-chemical weed and pest control
technologies, including autonomous laser weeders,
``(F) vision systems, remote sensors, and
temperature and soil moisture monitors,
``(G) internet of things and telematics
technologies,
``(H) software, including data management, advanced
analytics, machine learning, and artificial
intelligence systems, designed as part of or sold in
connection with other precision agriculture technology,
``(I) network connectivity products and solutions,
``(J) Global Positioning System guidance or auto-
steer systems,
``(K) variable rate technology for applying inputs,
such as section control,
``(L) robotics,
``(M) uncrewed aircraft systems and uncrewed ground
vehicles, and
``(N) any other technology, as determined by the
Secretary, that leads to a reduction in, or improves
efficiency of, inputs used in crop production and
harvesting, which may include seed, fertilizer,
chemicals, water, and time.''.
(b) Elective Payment of Credit.--Section 6417 of such Code is
amended--
(1) in subsection (b), by adding at the end the following:
``(13) The innovative agricultural technology investment
credit under section 48F.'', and
(2) in subsection (d)(1)--
(A) in subparagraph (E), by striking ``(C), or
(D)'' each place it appears and inserting ``(C), (D),
or (E)'',
(B) by redesignating subparagraph (E) (as amended
by clause (i)) as subparagraph (F), and
(C) by inserting after subparagraph (D) the
following:
``(E) Election with respect to innovative
agricultural technology investment credit.--If a
taxpayer other than an entity described in subparagraph
(A) makes an election under this subparagraph with
respect to any taxable year in which such taxpayer has,
after December 31, 2023, placed in service qualified
property which is part of an innovative agricultural
technology project (as defined in section 48F(b)), such
taxpayer shall be treated as an applicable entity for
purposes of this section for such taxable year, but
only with respect to the credit described in subsection
(b)(13).''.
(c) Transferability.--Section 6418(f)(1)(A) of such Code is amended
by adding at the end the following new clause:
``(xii) The innovative agricultural
technology investment credit determined under
section 48F.''.
(d) Conforming Amendments.--
(1) Section 46 of such Code is amended--
(A) in paragraph (6), by striking ``and'' at the
end,
(B) in paragraph (7), by striking the period at the
end and inserting ``, and'', and
(C) by adding at the end the following:
``(8) the innovative agricultural technology investment
credit.''.
(2) Section 49(a)(1)(C) of such Code is amended--
(A) in clause (vii), by striking ``and'' at the
end,
(B) in clause (viii), by striking the period at the
end and inserting ``, and'', and
(C) by adding at the end the following:
``(ix) the basis of any qualified property
which is part of an innovative agricultural
technology project under section 48F.''.
(3) Section 50(a)(2)(E) of such Code is amended by striking
``or 48E(e)'' and inserting ``48E(e), or 48F(c)(1)''.
(4) The table of sections for subpart E of part IV of
subchapter A of chapter 1 of such Code is amended by inserting
after the item relating to section 48E the following new item:
``Sec. 48F. Innovative agricultural technology investment credit.''.
(e) Effective Date.--The amendments made by this section shall
apply to property the construction of which began after January 1,
2023.
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