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[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[H.R. 9263 Introduced in House (IH)]

<DOC>

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.
                                 <all>
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