I 
119TH CONGRESS 
1ST SESSION H. R. 1707 
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 
FEBRUARY 27, 2025 
Mr. KUSTOFF (for himself, Mr. COSTA, Mr. ALFORD, Mr. ROUZER, and Mr. 
CAREY) introduced the following bill; which was referred to the Com-
mittee 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. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Grown in America Act 
of 2025’’. 
SEC. 2. DOMESTICALLY PRODUCED AGRICULTURE CREDIT. 
(a) IN GENERAL.—Subpart D of part IV of sub-
chapter A of chapter 1 of the Internal Revenue Code of 
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‘‘(2) AGRICULTURAL COMMODITY.— 
‘‘(A) IN GENERAL.—The term ‘agricultural 
commodity’ means a commodity specified in 
subparagraph (B) that— 
‘‘(i) is marketed for human consump-
tion, or 
‘‘(ii) is used in the production or man-
ufacture of a product marketed for human 
consumption. 
‘‘(B) COMMODITIES SPECIFIED.—The com-
modities described in this subparagraph are— 
‘‘(i) The commodities described in 
subparagraphs (A), (B) excluding live ani-
mals, (C), and (E) of section 513 of the 
Federal Agriculture Improvement and Re-
form Act of 1996, and 
‘‘(ii) the products of farm-raised fish 
(as defined in section 1501 of the Agricul-
tural Act of 2014). 
‘‘(3) 
DOMESTIC
AGRICULTURAL
INPUT 
COSTS.—The term ‘domestic agricultural input 
costs’ means any expenses paid or incurred by the 
taxpayer during any taxable year to purchase agri-
cultural commodities— 
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‘‘(A) which are produced in the United 
States, and 
‘‘(B) which the taxpayer uses in the course 
of the trade or business of the taxpayer to 
produce products— 
‘‘(i) in the United States, and 
‘‘(ii) sold for human consumption 
without further processing. 
‘‘(4) FOREIGN AGRICULTURAL INPUT COSTS.— 
The term ‘foreign agricultural input costs’ means 
any expenses paid or incurred by the taxpayer dur-
ing any taxable year to purchase agricultural com-
modities— 
‘‘(A) which are produced outside the 
United States, and 
‘‘(B) which the taxpayer uses in the course 
of the trade or business of the taxpayer to 
produce products— 
‘‘(i) in the United States, and 
‘‘(ii) sold for human consumption 
without further processing. 
‘‘(5) TOTAL AGRICULTURAL INPUT COSTS.— 
‘‘(A) IN
GENERAL.—Subject to subpara-
graph (B), the term ‘total agricultural input 
costs’ means an amount equal to the sum of do-
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mestic agricultural input costs and foreign agri-
cultural input costs of the taxpayer for any tax-
able year. 
‘‘(B) EXCEPTION.—The term ‘total agri-
cultural input costs’ shall not include any ex-
penses paid or incurred by the taxpayer during 
the taxable year to purchase any agricultural 
commodity identified and listed by the Sec-
retary of Agriculture under section 2(c) of the 
Grown in America Act of 2025. 
‘‘(c) INELIGIBILITY FOR CREDIT.— 
‘‘(1) IN GENERAL.—In the case of any taxpayer 
for which the 3-year average applicable percentage 
for any taxable year does not exceed the applicable 
threshold, the amount of the credit allowed under 
subsection (a) shall be reduced to zero for such tax-
able year. 
‘‘(2) APPLICABLE THRESHOLD.—For purposes 
of this subsection, the term ‘applicable threshold’ 
means— 
‘‘(A) in the case of taxable years beginning 
in 2026, 50 percent, 
‘‘(B) in the case of taxable years beginning 
in 2027, 55 percent, 
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‘‘(C) in the case of taxable years beginning 
in 2028, 60 percent, 
‘‘(D) in the case of taxable years beginning 
in 2029, 65 percent, 
‘‘(E) in the case of taxable years beginning 
in 2030, 70 percent. 
‘‘(F) in the case of taxable years beginning 
in 2031, 75 percent, 
‘‘(G) in the case of taxable years beginning 
in 2032, 80 percent, and 
‘‘(H) in the case of taxable years beginning 
after December 31, 2033, 85 percent. 
‘‘(3) 3-YEAR AVERAGE APPLICABLE PERCENT-
AGE.—For purposes of this subsection, the term ‘3- 
year average applicable percentage’ means, with re-
spect to a taxpayer and any taxable year, the 
amount (expressed as a percentage) equal that is 
equal to the quotient of— 
‘‘(A) the domestic agricultural input costs 
of such taxpayer for the 3-year period ending 
on the last day of such taxable year, divided by 
‘‘(B) the total agricultural input costs of 
such taxpayer for such 3-year period. 
‘‘(d) COOPERATIVE ORGANIZATIONS.— 
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‘‘(1) APPORTIONMENT OF CREDIT.—In the case 
of an eligible cooperative organization described in 
paragraph (4), any portion of the credit determined 
under subsection (a) for the taxable year may, at the 
election of the organization, be apportioned among 
patrons eligible to share in patronage dividends on 
the basis of the quantity or value of business done 
with or for such patrons for the taxable year. 
‘‘(2) FORM
AND
EFFECT
OF
ELECTION.—An 
election under subparagraph (A) for any taxable 
year shall be made on a timely filed return for such 
year. 
‘‘(3) ELECTION
IRREVOCABLE.—An election 
under subparagraph (A) shall be irrevocable for the 
taxable year. 
‘‘(4) TREATMENT OF ORGANIZATIONS AND PA-
TRONS.— 
‘‘(A) ORGANIZATIONS.—The amount of the 
credit not apportioned to patrons pursuant to 
paragraph (1) shall be included in the amount 
determined under subsection (a) for the taxable 
year of the eligible cooperative organization. 
‘‘(B) PATRONS.—The amount of the credit 
apportioned to patrons pursuant to paragraph 
(1) shall be included in the amount determined 
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under subsection (a) for the first taxable year 
of each patron ending on or after the last day 
of the payment period (as defined in section 
1382(d)) for the taxable year of the eligible co-
operative organization or, if earlier, for the tax-
able year of each patron ending on or after the 
date on which the patron receives notice from 
such cooperative of the apportionment. 
‘‘(5) SPECIAL
RULE.—If the amount of the 
credit of an eligible cooperative organization deter-
mined under subsection (a) for a taxable year is less 
than the amount of such credit shown on the return 
of the cooperative organization for such year, an 
amount equal to the excess of— 
‘‘(A) such reduction, over 
‘‘(B) the amount not apportioned to such 
patrons under subparagraph (A) for the taxable 
year, 
shall be treated as an increase in tax imposed by 
this chapter on such organization. Such increase 
shall not be treated as a tax imposed by this chapter 
for purposes of determining the amount of any cred-
it under this chapter. 
‘‘(6) ELIGIBLE COOPERATIVE ORGANIZATION.— 
For purposes of this subsection, the term ‘eligible 
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cooperative organization’ has the meaning given to 
the term ‘specified agricultural or horticultural coop-
erative’ in section 199A(g)(4). 
‘‘(e) AGGREGATION RULE.—All persons which are 
treated as a single employer under subsections (a) and (b) 
of section 52 shall be treated as a single taxpayer for pur-
poses of this section. 
‘‘(f) REGULATIONS.—The Secretary may prescribe 
such regulations and other guidance as may be necessary 
or appropriate to carry out this section.’’. 
(b) CREDIT ALLOWED AS PART OF GENERAL BUSI-
NESS CREDIT.— 
(1) IN GENERAL.—Section 38(b) of such Code 
is amended by adding at the end the following new 
paragraph: 
‘‘(42) the domestically produced agriculture 
credit determined under section 45U(a).’’. 
(2) LIMITATIONS.—Section 38(c) of such Code 
is amended by adding at the end the following new 
paragraph: 
‘‘(7) SPECIAL RULES FOR DOMESTICALLY PRO-
DUCED AGRICULTURE CREDIT.—In the case of the 
portion of the credit determined under subsection 
(a) which is attributable to the domestically pro-
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‘‘(i) in paragraphs (1)(B) and (2)(B) 
thereof, by substituting ‘10 taxable years’ 
for ‘20 taxable years’ each place it ap-
pears, and 
‘‘(ii) in paragraph (2)(A), by sub-
stituting ‘11 taxable years’ for ‘21 taxable 
years’.’’. 
(c) DOMESTICALLY UNAVAILABLE AGRICULTURAL 
COMMODITIES.—For purposes of section 45BB of such 
Code, the Secretary of Agriculture shall establish and 
maintain a list that identifies, with respect to each cal-
endar year beginning after the date of enactment of this 
Act, the agricultural commodities (as defined in subsection 
(b)(2) of such section) that cannot feasibly be produced, 
grown, or raised domestically during such calendar year. 
(d) CLERICAL AMENDMENT.—The table of sections 
for subpart D of part IV of subchapter A of chapter 1 
of such Code is amended by adding at the end the fol-
lowing new item: 
‘‘Sec. 45BB. Domestically produced agriculture credit.’’. 
(e) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
December 31, 2025. 
Æ 
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