I 

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. 

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 ‘‘Supporting Innovation 

5 in Agriculture Act of 2024’’. 

6 SEC. 2. CREDIT FOR INVESTMENT IN INNOVATIVE AGRI7 CULTURAL TECHNOLOGY. 

8 (a) IN GENERAL.—Subpart E of part IV of sub9 chapter A of chapter 1 of the Internal Revenue Code of 


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1 1986 is amended by inserting after section 48E the fol2 lowing new section: 

3 ‘‘SEC. 48F. INNOVATIVE AGRICULTURAL TECHNOLOGY IN4 VESTMENT CREDIT. 

5 ‘‘(a) IN GENERAL.—For purposes of section 46, the 

6 innovative agricultural technology investment credit for 

7 any taxable year is an amount equal to 30 percent of the 

8 qualified investment for such taxable year with respect to 

9 any innovative agricultural technology project. 

10 ‘‘(b) QUALIFIED INVESTMENT.— 

11 ‘‘(1) IN GENERAL.—For purposes of subsection 

12 (a), the qualified investment with respect to any in13 novative agricultural technology project for any tax14 able year is the basis of any qualified property 

15 placed in service by the taxpayer during such taxable 

16 year which is part of an innovative agricultural tech17 nology project. 

18 ‘‘(2) QUALIFIED PROPERTY.—For purposes of 

19 this section, the term ‘qualified property’ means 

20 property— 

21 ‘‘(A) which is— 

22 ‘‘(i) tangible personal property, wheth23 er or not affixed to real property (including 

24 equipment, systems and their components, 

25 materials, machinery, accessories, and 


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1 structural components), which is used as 

2 an integral part of an innovative agricul3 tural technology project, or 

4 ‘‘(ii) software, a computer system, or 

5 similar technology, 

6 ‘‘(B) with respect to which depreciation (or 

7 amortization in lieu of depreciation) is allow8 able, and 

9 ‘‘(C)(i) the construction, reconstruc10 tion, or erection of which is completed by 

11 the taxpayer, or 

12 ‘‘(ii) which is acquired by the taxpayer 

13 if the original use of such property com14 mences with the taxpayer. 

15 ‘‘(3) INNOVATIVE AGRICULTURAL TECHNOLOGY

16 PROJECT.—The term ‘innovative agricultural tech17 nology project’ means an agricultural technology or 

18 system— 

19 ‘‘(A) which is placed in service before De20 cember 31, 2035, and 

21 ‘‘(B) for which the primary purpose is to 

22 produce, store, process, and package specialty 

23 crops (as defined in section 3 of the Specialty 

24 Crops Competitiveness Act of 2004) using— 

25 ‘‘(i) precision agriculture, or 


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1 ‘‘(ii) controlled environment agri2 culture. 

3 ‘‘(c) SPECIAL RULES.— 

4 ‘‘(1) CERTAIN PROCESS EXPENDITURE RULES

5 MADE APPLICABLE.—Rules similar to the rules of 

6 subsections (c)(4) and (d) of section 46 (as in effect 

7 on the day before the date of the enactment of the 

8 Revenue Reconciliation Act of 1990) shall apply for 

9 purposes of subsection (a). 

10 ‘‘(2) DENIAL OF DOUBLE BENEFIT UNDER

11 GRANT PROGRAMS.—Rules similar to the rules of 

12 section 48(d) shall apply for purposes of this section 

13 with respect to— 

14 ‘‘(A) any renewable energy system, energy 

15 efficiency improvement, or equipment or system 

16 purchased, made, or installed using a grant 

17 provided under section 9007(c) of the Farm Se18 curity and Rural Investment Act of 2002 (7 

19 U.S.C. 8107(c)), or 

20 ‘‘(B) any physical improvement to land 

21 made using a payment provided under the envi22 ronmental quality incentives program estab23 lished under subchapter A of chapter 4 of sub24 title D of title XII of the Food Security Act of 

25 1985 (16 U.S.C. 3839aa et seq.). 


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1 ‘‘(d) DEFINITIONS.—In this section— 

2 ‘‘(1) CONTROLLED ENVIRONMENT AGRI3 CULTURE.—The term ‘controlled environment agri4 culture’ means a closed, indoor agricultural produc5 tion system using controlled environment agriculture 

6 technology in which the environment and inputs can 

7 be controlled throughout the lifecycle of a crop. 

8 ‘‘(2) CONTROLLED ENVIRONMENT AGRI9 CULTURE TECHNOLOGY.—The term ‘controlled envi10 ronment agriculture technology’ means any tech11 nology (including equipment, systems and their com12 ponents, materials, and accessories that are nec13 essary for the deployment of such technology) that 

14 is required to create, support, and maintain the nec15 essary growing environment for plants and directly 

16 contributes to the efficient production, harvesting, 

17 processing, or packaging of agricultural products 

18 and goods, including— 

19 ‘‘(A) heating, cooling, thermal screening, 

20 humidification, dehumidification, and air cir21 culation systems, 

22 ‘‘(B) horticultural lighting systems and 

23 glazing materials, 

24 ‘‘(C) irrigation and water treatment and 

25 filtration systems, 


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1 ‘‘(D) nutrient delivery and management, 

2 ‘‘(E) sensors and vision systems for gath3 ering data within a commercial controlled envi4 ronment agricultural facility, 

5 ‘‘(F) software, including data management 

6 software, advanced analytics, machine learning 

7 systems and artificial intelligence systems, de8 signed as part of or sold in connection with con9 trolled environment agriculture technology, 

10 ‘‘(G) robotics, conveyance, and automation 

11 systems, including automated storage and re12 trieval equipment, 

13 ‘‘(H) automatic harvesting, seeding, trans14 planting, and sanitation systems, and 

15 ‘‘(I) any other technology, as determined 

16 by the Secretary, that contributes to the effi17 cient production, harvesting, processing, or 

18 packaging of agricultural products and goods in 

19 commercial controlled environment agricultural 

20 facilities. 

21 ‘‘(3) PRECISION AGRICULTURE.—The term 

22 ‘precision agriculture’ means the use of on-farm pre23 cision agriculture technology in— 


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1 ‘‘(A) managing, tracking, or reducing crop 

2 production inputs, including seed, land, fer3 tilizer, chemicals, water, and time, 

4 ‘‘(B) optimizing weed, pest, and disease 

5 identification, 

6 ‘‘(C) managing and tracking crop harvest 

7 and on-farm storage at a heightened level of 

8 spatial and temporal granularity to improve ef9 ficiencies, reduce waste, and maintain environ10 mental quality, and 

11 ‘‘(D) improving on-farm water conserva12 tion and irrigation efficiency. 

13 ‘‘(4) PRECISION AGRICULTURE TECHNOLOGY.— 

14 The term ‘precision agriculture technology’ means 

15 any technology (including equipment that is nec16 essary for the deployment of such technology) that 

17 directly contributes to a reduction in, or improved 

18 efficiency of, inputs used in specialty crop produc19 tion, harvesting, and on-farm storage including— 

20 ‘‘(A) Global Positioning System-based or 

21 geospatial mapping, 

22 ‘‘(B) satellite or aerial imagery, 

23 ‘‘(C) yield monitors, 

24 ‘‘(D) soil mapping, 


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1 ‘‘(E) non-chemical weed and pest control 

2 technologies, including autonomous laser weed3 ers, 

4 ‘‘(F) vision systems, remote sensors, and 

5 temperature and soil moisture monitors, 

6 ‘‘(G) internet of things and telematics 

7 technologies, 

8 ‘‘(H) software, including data manage9 ment, advanced analytics, machine learning, 

10 and artificial intelligence systems, designed as 

11 part of or sold in connection with other preci12 sion agriculture technology, 

13 ‘‘(I) network connectivity products and so14 lutions, 

15 ‘‘(J) Global Positioning System guidance 

16 or auto-steer systems, 

17 ‘‘(K) variable rate technology for applying 

18 inputs, such as section control, 

19 ‘‘(L) robotics, 

20 ‘‘(M) uncrewed aircraft systems and 

21 uncrewed ground vehicles, and 

22 ‘‘(N) any other technology, as determined 

23 by the Secretary, that leads to a reduction in, 

24 or improves efficiency of, inputs used in crop 


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1 production and harvesting, which may include 

2 seed, fertilizer, chemicals, water, and time.’’. 

3 (b) ELECTIVE PAYMENT OF CREDIT.—Section 6417 

4 of such Code is amended— 

5 (1) in subsection (b), by adding at the end the 

6 following: 

7 ‘‘(13) The innovative agricultural technology in8 vestment credit under section 48F.’’, and 

9 (2) in subsection (d)(1)— 

10 (A) in subparagraph (E), by striking ‘‘(C), 

11 or (D)’’ each place it appears and inserting 

12 ‘‘(C), (D), or (E)’’, 

13 (B) by redesignating subparagraph (E) (as 

14 amended by clause (i)) as subparagraph (F), 

15 and 

16 (C) by inserting after subparagraph (D) 

17 the following: 

18 ‘‘(E) ELECTION WITH RESPECT TO INNO19 VATIVE AGRICULTURAL TECHNOLOGY INVEST20 MENT CREDIT.—If a taxpayer other than an en21 tity described in subparagraph (A) makes an 

22 election under this subparagraph with respect 

23 to any taxable year in which such taxpayer has, 

24 after December 31, 2023, placed in service 

25 qualified property which is part of an innovative 


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1 agricultural technology project (as defined in 

2 section 48F(b)), such taxpayer shall be treated 

3 as an applicable entity for purposes of this sec4 tion for such taxable year, but only with respect 

5 to the credit described in subsection (b)(13).’’. 

6 (c) TRANSFERABILITY.—Section 6418(f)(1)(A) of 

7 such Code is amended by adding at the end the following 

8 new clause: 

9 ‘‘(xii) The innovative agricultural 

10 technology investment credit determined 

11 under section 48F.’’. 

12 (d) CONFORMING AMENDMENTS.— 

13 (1) Section 46 of such Code is amended— 

14 (A) in paragraph (6), by striking ‘‘and’’ at 

15 the end, 

16 (B) in paragraph (7), by striking the pe17 riod at the end and inserting ‘‘, and’’, and 

18 (C) by adding at the end the following: 

19 ‘‘(8) the innovative agricultural technology in20 vestment credit.’’. 

21 (2) Section 49(a)(1)(C) of such Code is amend22 ed— 

23 (A) in clause (vii), by striking ‘‘and’’ at the 

24 end, 


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1 (B) in clause (viii), by striking the period 

2 at the end and inserting ‘‘, and’’, and 

3 (C) by adding at the end the following: 

4 ‘‘(ix) the basis of any qualified prop5 erty which is part of an innovative agricul6 tural technology project under section 

7 48F.’’. 

8 (3) Section 50(a)(2)(E) of such Code is amend9 ed by striking ‘‘or 48E(e)’’ and inserting ‘‘48E(e), 

10 or 48F(c)(1)’’. 

11 (4) The table of sections for subpart E of part 

12 IV of subchapter A of chapter 1 of such Code is 

13 amended by inserting after the item relating to sec14 tion 48E the following new item: 

‘‘Sec. 48F. Innovative agricultural technology investment credit.’’. 

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

16 this section shall apply to property the construction of 

17 which began after January 1, 2023. 

Æ 


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