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. 
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 ‘‘Supporting Innovation 
in Agriculture Act of 2024’’. 
SEC. 2. CREDIT FOR INVESTMENT IN INNOVATIVE AGRI-
CULTURAL TECHNOLOGY. 
(a) IN GENERAL.—Subpart E of part IV of sub-
chapter A of chapter 1 of the Internal Revenue Code of 
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1986 is amended by inserting after section 48E the fol-
lowing new section: 
‘‘SEC. 48F. INNOVATIVE AGRICULTURAL TECHNOLOGY IN-
VESTMENT 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 in-
novative agricultural technology project for any tax-
able 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 tech-
nology project. 
‘‘(2) QUALIFIED PROPERTY.—For purposes of 
this section, the term ‘qualified property’ means 
property— 
‘‘(A) which is— 
‘‘(i) tangible personal property, wheth-
er or not affixed to real property (including 
equipment, systems and their components, 
materials, 
machinery, 
accessories, 
and 
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structural components), which is used as 
an integral part of an innovative agricul-
tural technology project, or 
‘‘(ii) software, a computer system, or 
similar technology, 
‘‘(B) with respect to which depreciation (or 
amortization in lieu of depreciation) is allow-
able, and 
‘‘(C)(i) the construction, reconstruc-
tion, or erection of which is completed by 
the taxpayer, or 
‘‘(ii) which is acquired by the taxpayer 
if the original use of such property com-
mences with the taxpayer. 
‘‘(3) INNOVATIVE AGRICULTURAL TECHNOLOGY 
PROJECT.—The term ‘innovative agricultural tech-
nology project’ means an agricultural technology or 
system— 
‘‘(A) which is placed in service before De-
cember 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 
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‘‘(ii) 
controlled 
environment 
agri-
culture. 
‘‘(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 Se-
curity 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 envi-
ronmental quality incentives program estab-
lished under subchapter A of chapter 4 of sub-
title D of title XII of the Food Security Act of 
1985 (16 U.S.C. 3839aa et seq.). 
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‘‘(d) DEFINITIONS.—In this section— 
‘‘(1) 
CONTROLLED
ENVIRONMENT
AGRI-
CULTURE.—The term ‘controlled environment agri-
culture’ means a closed, indoor agricultural produc-
tion system using controlled environment agriculture 
technology in which the environment and inputs can 
be controlled throughout the lifecycle of a crop. 
‘‘(2) 
CONTROLLED
ENVIRONMENT
AGRI-
CULTURE TECHNOLOGY.—The term ‘controlled envi-
ronment agriculture technology’ means any tech-
nology (including equipment, systems and their com-
ponents, materials, and accessories that are nec-
essary for the deployment of such technology) that 
is required to create, support, and maintain the nec-
essary 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 cir-
culation systems, 
‘‘(B) horticultural lighting systems and 
glazing materials, 
‘‘(C) irrigation and water treatment and 
filtration systems, 
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‘‘(D) nutrient delivery and management, 
‘‘(E) sensors and vision systems for gath-
ering data within a commercial controlled envi-
ronment agricultural facility, 
‘‘(F) software, including data management 
software, advanced analytics, machine learning 
systems and artificial intelligence systems, de-
signed as part of or sold in connection with con-
trolled environment agriculture technology, 
‘‘(G) robotics, conveyance, and automation 
systems, including automated storage and re-
trieval equipment, 
‘‘(H) automatic harvesting, seeding, trans-
planting, and sanitation systems, and 
‘‘(I) any other technology, as determined 
by the Secretary, that contributes to the effi-
cient 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 pre-
cision agriculture technology in— 
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‘‘(A) managing, tracking, or reducing crop 
production inputs, including seed, land, fer-
tilizer, 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 ef-
ficiencies, reduce waste, and maintain environ-
mental quality, and 
‘‘(D) improving on-farm water conserva-
tion and irrigation efficiency. 
‘‘(4) PRECISION AGRICULTURE TECHNOLOGY.— 
The term ‘precision agriculture technology’ means 
any technology (including equipment that is nec-
essary for the deployment of such technology) that 
directly contributes to a reduction in, or improved 
efficiency of, inputs used in specialty crop produc-
tion, 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, 
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‘‘(E) non-chemical weed and pest control 
technologies, including autonomous laser weed-
ers, 
‘‘(F) vision systems, remote sensors, and 
temperature and soil moisture monitors, 
‘‘(G) internet of things and telematics 
technologies, 
‘‘(H) software, including data manage-
ment, advanced analytics, machine learning, 
and artificial intelligence systems, designed as 
part of or sold in connection with other preci-
sion agriculture technology, 
‘‘(I) network connectivity products and so-
lutions, 
‘‘(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 
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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 in-
vestment 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 INNO-
VATIVE
AGRICULTURAL
TECHNOLOGY
INVEST-
MENT CREDIT.—If a taxpayer other than an en-
tity 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 
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agricultural technology project (as defined in 
section 48F(b)), such taxpayer shall be treated 
as an applicable entity for purposes of this sec-
tion 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 pe-
riod at the end and inserting ‘‘, and’’, and 
(C) by adding at the end the following: 
‘‘(8) the innovative agricultural technology in-
vestment credit.’’. 
(2) Section 49(a)(1)(C) of such Code is amend-
ed— 
(A) in clause (vii), by striking ‘‘and’’ at the 
end, 
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(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 prop-
erty which is part of an innovative agricul-
tural technology project under section 
48F.’’. 
(3) Section 50(a)(2)(E) of such Code is amend-
ed 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 sec-
tion 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. 
Æ 
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