I 

118TH CONGRESS 

2D SESSION H. R. 10494 

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 

DECEMBER 18, 2024 

Mr. KUSTOFF (for himself, Mr. ROUZER, Mr. ALFORD, Mr. CAREY, and Mr. 

COSTA) 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 tax credit to incentivize the purchase of American 

agricultural commodities. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Grown in America Act 

5 of 2024’’. 

6 SEC. 2. DOMESTICALLY PRODUCED AGRICULTURE CREDIT. 

7 (a) IN GENERAL.—Subpart D of part IV of sub8 chapter A of chapter 1 of the Internal Revenue Code of 


ssavage on LAPJG3WLY3PROD with BILLS
2 

•HR 10494 IH

1 1986 is amended by adding at the end the following new 

2 section: 

3 ‘‘SEC. 45BB. DOMESTICALLY PRODUCED AGRICULTURE 

4 CREDIT. 

5 ‘‘(a) IN GENERAL.—For purposes of section 38, the 

6 domestically produced agriculture credit determined under 

7 this section for any taxable year is an amount equal to 

8 the lesser of— 

9 ‘‘(1)(A) the product of— 

10 ‘‘(B) 25 percent of the total agricultural input 

11 costs of such taxpayer with respect to such taxable 

12 year, multiplied by 

13 ‘‘(C) the applicable percentage of the taxpayer 

14 for the taxable year, or 

15 ‘‘(2) $100,000,000. 

16 ‘‘(b) DEFINITIONS.—For purposes of this section— 

17 ‘‘(1) APPLICABLE PERCENTAGE.—For purposes 

18 of this section, the applicable percentage for a tax19 payer for any taxable year is an amount (expressed 

20 as a percentage) equal to the quotient of— 

21 ‘‘(A) the domestic agricultural input costs 

22 of such taxpayer for such taxable year, divided 

23 by 

24 ‘‘(B) the total agricultural input costs of 

25 such taxpayer for such taxable year. 


ssavage on LAPJG3WLY3PROD with BILLS
3 

•HR 10494 IH

1 ‘‘(2) AGRICULTURAL COMMODITY.— 

2 ‘‘(A) IN GENERAL.—The term ‘agricultural 

3 commodity’ means a commodity specified in 

4 subparagraph (B) that— 

5 ‘‘(i) is marketed for human consump6 tion, or 

7 ‘‘(ii) is used in the production or man8 ufacture of a product marketed for human 

9 consumption. 

10 ‘‘(B) COMMODITIES SPECIFIED.—The com11 modities described in this subparagraph are— 

12 ‘‘(i) The commodities described in 

13 subparagraphs (A), (B) excluding live ani14 mals, (C), and (E) of section 513 of the 

15 Federal Agriculture Improvement and Re16 form Act of 1996, and 

17 ‘‘(ii) the products of farm-raised fish 

18 (as defined in section 1501 of the Agricul19 tural Act of 2014). 

20 ‘‘(3) DOMESTIC AGRICULTURAL INPUT

21 COSTS.—The term ‘domestic agricultural input 

22 costs’ means any expenses paid or incurred by the 

23 taxpayer during any taxable year to purchase agri24 cultural commodities— 


ssavage on LAPJG3WLY3PROD with BILLS
4 

•HR 10494 IH

1 ‘‘(A) which are produced in the United 

2 States, and 

3 ‘‘(B) which the taxpayer uses in the course 

4 of the trade or business of the taxpayer to 

5 produce products— 

6 ‘‘(i) in the United States, and 

7 ‘‘(ii) sold for human consumption 

8 without further processing 

9 ‘‘(4) FOREIGN AGRICULTURAL INPUT COSTS.— 

10 The term ‘foreign agricultural input costs’ means 

11 any expenses paid or incurred by the taxpayer dur12 ing any taxable year to purchase agricultural com13 modities— 

14 ‘‘(A) which are produced outside the 

15 United States, and 

16 ‘‘(B) which the taxpayer uses in the course 

17 of the trade or business of the taxpayer to 

18 produce products— 

19 ‘‘(i) in the United States, and 

20 ‘‘(ii) sold for human consumption 

21 without further processing 

22 ‘‘(5) TOTAL AGRICULTURAL INPUT COSTS.— 

23 ‘‘(A) IN GENERAL.—Subject to subpara24 graph (B), the term ‘total agricultural input 

25 costs’ means an amount equal to the sum of doVerDate Sep 11 2014 19:44 Jan 24, 2025 Jkt 059200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\H10494.IH H10494

ssavage on LAPJG3WLY3PROD with BILLS
5 

•HR 10494 IH

1 mestic agricultural input costs and foreign agri2 cultural input costs of the taxpayer for any tax3 able year. 

4 ‘‘(B) EXCEPTION.—The term ‘total agri5 cultural input costs’ shall not include any ex6 penses paid or incurred by the taxpayer during 

7 the taxable year to purchase any agricultural 

8 commodity identified and listed by the Sec9 retary of Agriculture under section 2(c) of the 

10 Grown in America Act of 2024. 

11 ‘‘(c) INELIGIBILITY FOR CREDIT.— 

12 ‘‘(1) IN GENERAL.—In the case of any taxpayer 

13 for which the 3-year average applicable percentage 

14 for any taxable year does not exceed the applicable 

15 threshold, the amount of the credit allowed under 

16 subsection (a) shall be reduced to zero for such tax17 able year. 

18 ‘‘(2) APPLICABLE THRESHOLD.—For purposes 

19 of this subsection, the term ‘applicable threshold’ 

20 means— 

21 ‘‘(A) in the case of taxable years beginning 

22 in 2025, 50 percent, 

23 ‘‘(B) in the case of taxable years beginning 

24 in 2026, 55 percent, 


ssavage on LAPJG3WLY3PROD with BILLS
6 

•HR 10494 IH

1 ‘‘(C) in the case of taxable years beginning 

2 in 2027, 60 percent, 

3 ‘‘(D) in the case of taxable years beginning 

4 in 2028, 65 percent, 

5 ‘‘(E) in the case of taxable years beginning 

6 in 2029, 70 percent. 

7 ‘‘(F) in the case of taxable years beginning 

8 in 2030, 75 percent, 

9 ‘‘(G) in the case of taxable years beginning 

10 in 2031, 80 percent, and 

11 ‘‘(H) in the case of taxable years beginning 

12 after December 31, 2031, 85 percent. 

13 ‘‘(3) 3-YEAR AVERAGE APPLICABLE PERCENT14 AGE.—For purposes of this subsection, the term ‘3- 

15 year average applicable percentage’ means, with re16 spect to a taxpayer and any taxable year, the 

17 amount (expressed as a percentage) equal that is 

18 equal to the quotient of— 

19 ‘‘(A) the domestic agricultural input costs 

20 of such taxpayer for the 3-year period ending 

21 on the last day of such taxable year, divided by 

22 ‘‘(B) the total agricultural input costs of 

23 such taxpayer for such 3-year period. 

24 ‘‘(d) COOPERATIVE ORGANIZATIONS.— 


ssavage on LAPJG3WLY3PROD with BILLS
7 

•HR 10494 IH

1 ‘‘(1) APPORTIONMENT OF CREDIT.—In the case 

2 of an eligible cooperative organization described in 

3 paragraph (4), any portion of the credit determined 

4 under subsection (a) for the taxable year may, at the 

5 election of the organization, be apportioned among 

6 patrons eligible to share in patronage dividends on 

7 the basis of the quantity or value of business done 

8 with or for such patrons for the taxable year. 

9 ‘‘(2) FORM AND EFFECT OF ELECTION.—An 

10 election under subparagraph (A) for any taxable 

11 year shall be made on a timely filed return for such 

12 year. 

13 ‘‘(3) ELECTION IRREVOCABLE.—An election 

14 under subparagraph (A) shall be irrevocable for the 

15 taxable year. 

16 ‘‘(4) TREATMENT OF ORGANIZATIONS AND PA17 TRONS.— 

18 ‘‘(A) ORGANIZATIONS.—The amount of the 

19 credit not apportioned to patrons pursuant to 

20 paragraph (1) shall be included in the amount 

21 determined under subsection (a) for the taxable 

22 year of the eligible cooperative organization. 

23 ‘‘(B) PATRONS.—The amount of the credit 

24 apportioned to patrons pursuant to paragraph 

25 (1) shall be included in the amount determined 


ssavage on LAPJG3WLY3PROD with BILLS
8 

•HR 10494 IH

1 under subsection (a) for the first taxable year 

2 of each patron ending on or after the last day 

3 of the payment period (as defined in section 

4 1382(d)) for the taxable year of the eligible co5 operative organization or, if earlier, for the tax6 able year of each patron ending on or after the 

7 date on which the patron receives notice from 

8 such cooperative of the apportionment. 

9 ‘‘(5) SPECIAL RULE.—If the amount of the 

10 credit of an eligible cooperative organization deter11 mined under subsection (a) for a taxable year is less 

12 than the amount of such credit shown on the return 

13 of the cooperative organization for such year, an 

14 amount equal to the excess of— 

15 ‘‘(A) such reduction, over 

16 ‘‘(B) the amount not apportioned to such 

17 patrons under subparagraph (A) for the taxable 

18 year, 

19 shall be treated as an increase in tax imposed by 

20 this chapter on such organization. Such increase 

21 shall not be treated as a tax imposed by this chapter 

22 for purposes of determining the amount of any cred23 it under this chapter. 

24 ‘‘(6) ELIGIBLE COOPERATIVE ORGANIZATION.— 

25 For purposes of this subsection, the term ‘eligible 


ssavage on LAPJG3WLY3PROD with BILLS
9 

•HR 10494 IH

1 cooperative organization’ has the meaning given to 

2 the term ‘specified agricultural or horticultural coop3 erative’ in section 199A(g)(4). 

4 ‘‘(e) AGGREGATION RULE.—All persons which are 

5 treated as a single employer under subsections (a) and (b) 

6 of section 52 shall be treated as a single taxpayer for pur7 poses of this section. 

8 ‘‘(f) REGULATIONS.—The Secretary may prescribe 

9 such regulations and other guidance as may be necessary 

10 or appropriate to carry out this section.’’. 

11 (b) CREDIT ALLOWED AS PART OF GENERAL BUSI12 NESS CREDIT.— 

13 (1) IN GENERAL.—Section 38(b) of such Code 

14 is amended by striking ‘‘plus’’ at the end of para15 graph (32), by striking the period at the end of 

16 paragraph (33) and inserting ‘‘, plus’’, and by add17 ing at the end the following new paragraph: 

18 ‘‘(34) the domestically produced agriculture 

19 credit determined under section 45U(a).’’. 

20 (2) LIMITATIONS.—Section 38(c) of such Code 

21 is amended by adding at the end the following new 

22 paragraph: 

23 ‘‘(7) SPECIAL RULES FOR DOMESTICALLY PRO24 DUCED AGRICULTURE CREDIT.—In the case of the 

25 portion of the credit determined under subsection 


ssavage on LAPJG3WLY3PROD with BILLS
10 

•HR 10494 IH

1 (a) which is attributable to the domestically pro2 duced agriculture credit determined under section 

3 45BB— 

4 ‘‘(A) this section and section 39 shall be 

5 applied separately with respect to such credit, 

6 ‘‘(B) in applying paragraph (1) to such 

7 credit— 

8 ‘‘(i) for purposes of subparagraph (A) 

9 thereof, the tentative minimum tax shall be 

10 treated as being zero, 

11 ‘‘(ii) for purposes of subparagraph 

12 (B) thereof, such subparagraph shall be 

13 applied— 

14 ‘‘(I) by substituting ‘50 percent’ 

15 for ‘25 percent’, and 

16 ‘‘(II) by substituting ‘$0’ for 

17 ‘$25,000’, and 

18 ‘‘(iii) the limitation under paragraph 

19 (1) (as modified by clause (ii)) shall be re20 duced by the credit allowed under sub21 section (a) for the taxable year (other than 

22 the domestically produced agriculture cred23 it), and 


ssavage on LAPJG3WLY3PROD with BILLS
11 

•HR 10494 IH

1 ‘‘(C) with respect to the application of sec2 tion 39, subsection (a) of such section shall be 

3 applied— 

4 ‘‘(i) in paragraphs (1)(B) and (2)(B) 

5 thereof, by substituting ‘10 taxable years’ 

6 for ‘20 taxable years’ each place it ap7 pears, and 

8 ‘‘(ii) in paragraph (2)(A), by sub9 stituting ‘11 taxable years’ for ‘21 taxable 

10 years’.’’. 

11 (c) DOMESTICALLY UNAVAILABLE AGRICULTURAL

12 COMMODITIES.—For purposes of section 45BB of such 

13 Code, the Secretary of Agriculture shall establish and 

14 maintain a list that identifies, with respect to each cal15 endar year beginning after the date of enactment of this 

16 Act, the agricultural commodities (as defined in subsection 

17 (b)(2) of such section) that cannot feasibly be produced, 

18 grown, or raised domestically during such calendar year. 

19 (d) CLERICAL AMENDMENT.—The table of sections 

20 for subpart D of part IV of subchapter A of chapter 1 

21 of such Code is amended by adding at the end the fol22 lowing new item: 

‘‘Sec. 45BB. Domestically produced agriculture credit.’’. 


ssavage on LAPJG3WLY3PROD with BILLS
12 

•HR 10494 IH

1 (e) EFFECTIVE DATE.—The amendments made by 

2 this section shall apply to taxable years beginning after 

3 the date of enactment of this Act. 

Æ 


ssavage on LAPJG3WLY3PROD with BILLS