Establishes an agrivoltaic production tax credit

2025 Regular Session Introduced by Pete Harckham

Bill S 5628 offers tax credits to farmers adopting agrivoltaic systems, boosting income and renewable energy while promoting sustainable agriculture practices.

REFERRED TO BUDGET AND REVENUE

Purpose and Intent

Bill S 5628 aims to promote the integration of agricultural production and solar energy generation through the establishment of an agrivoltaic production tax credit. This initiative seeks to encourage farmers and landowners to adopt agrivoltaic systems, which allow for the simultaneous use of land for both agriculture and solar energy production. The bill is designed to support sustainable farming practices while advancing renewable energy goals.

Key Provisions

Tax Credit Establishment: The bill proposes a tax credit for eligible agrivoltaic systems, which would provide financial incentives for farmers who implement these dual-use technologies.

Eligibility Criteria: Specific criteria will be outlined to determine which agrivoltaic systems qualify for the tax credit. This may include requirements related to system size, type of crops grown, and energy output.

Credit Amount: While the exact dollar amount of the tax credit is not specified in the current version, it is expected to be a percentage of the costs associated with installing and maintaining agrivoltaic systems.

Duration of Credit: The bill may specify the duration for which the tax credit is available, potentially offering it for multiple tax years to encourage long-term investment in agrivoltaic technologies.

Affected Parties

Farmers and Landowners: The primary beneficiaries of this bill will be farmers and landowners who choose to adopt agrivoltaic systems, allowing them to diversify their income sources while contributing to renewable energy production.

Renewable Energy Sector: The bill is also expected to positively impact the renewable energy sector by increasing the number of solar energy installations on agricultural lands.

Environmental Advocates: Supporters of sustainable agriculture and renewable energy will likely endorse this bill as it aligns with broader environmental goals.

Procedural Aspects

Introduced Date: The bill was introduced on February 26, 2025.

Current Status: As of now, the bill has been referred to the Budget and Revenue Committee for further consideration. This step is crucial for evaluating the financial implications and potential budgetary impacts of the proposed tax credit.

Conclusion

Bill S 5628 represents a significant step towards fostering sustainable agricultural practices and enhancing renewable energy production. By providing a tax credit for agrivoltaic systems, the legislation aims to incentivize the adoption of innovative farming techniques that can help address both food security and energy needs. The ongoing discussions in the Budget and Revenue Committee will be pivotal in shaping the final provisions of this bill.

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