[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1707 Introduced in House (IH)]
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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
Committee 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 Representatives 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 subchapter A of chapter 1
of the Internal Revenue Code of 1986 is amended by adding at the end
the following new section:
``SEC. 45BB. DOMESTICALLY PRODUCED AGRICULTURE CREDIT.
``(a) In General.--For purposes of section 38, the domestically
produced agriculture credit determined under this section for any
taxable year is an amount equal to the lesser of--
``(1)(A) the product of--
``(B) 25 percent of the total agricultural input costs of
such taxpayer with respect to such taxable year, multiplied by
``(C) the applicable percentage of the taxpayer for the
taxable year, or
``(2) $100,000,000.
``(b) Definitions.--For purposes of this section--
``(1) Applicable percentage.--For purposes of this section,
the applicable percentage for a taxpayer for any taxable year
is an amount (expressed as a percentage) equal to the quotient
of--
``(A) the domestic agricultural input costs of such
taxpayer for such taxable year, divided by
``(B) the total agricultural input costs of such
taxpayer for such taxable year.
``(2) Agricultural commodity.--
``(A) In general.--The term `agricultural
commodity' means a commodity specified in subparagraph
(B) that--
``(i) is marketed for human consumption, or
``(ii) is used in the production or
manufacture of a product marketed for human
consumption.
``(B) Commodities specified.--The commodities
described in this subparagraph are--
``(i) The commodities described in
subparagraphs (A), (B) excluding live animals,
(C), and (E) of section 513 of the Federal
Agriculture Improvement and Reform Act of 1996,
and
``(ii) the products of farm-raised fish (as
defined in section 1501 of the Agricultural 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
agricultural commodities--
``(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 during any taxable year to purchase
agricultural commodities--
``(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 subparagraph (B), the
term `total agricultural input costs' means an amount
equal to the sum of domestic agricultural input costs
and foreign agricultural input costs of the taxpayer
for any taxable year.
``(B) Exception.--The term `total agricultural
input costs' shall not include any expenses paid or
incurred by the taxpayer during the taxable year to
purchase any agricultural commodity identified and
listed by the Secretary 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 taxable 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,
``(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 percentage.--For purposes
of this subsection, the term `3-year average applicable
percentage' means, with respect 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.--
``(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 patrons.--
``(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 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 cooperative organization or, if earlier, for
the taxable 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 determined 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 credit under this chapter.
``(6) Eligible cooperative organization.--For purposes of
this subsection, the term `eligible cooperative organization'
has the meaning given to the term `specified agricultural or
horticultural cooperative' 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 purposes 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 Business 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 produced agriculture
credit.--In the case of the portion of the credit determined
under subsection (a) which is attributable to the domestically
produced agriculture credit determined under section 45BB--
``(A) this section and section 39 shall be applied
separately with respect to such credit,
``(B) in applying paragraph (1) to such credit--
``(i) for purposes of subparagraph (A)
thereof, the tentative minimum tax shall be
treated as being zero,
``(ii) for purposes of subparagraph (B)
thereof, such subparagraph shall be applied--
``(I) by substituting `50 percent'
for `25 percent', and
``(II) by substituting `$0' for
`$25,000', and
``(iii) the limitation under paragraph (1)
(as modified by clause (ii)) shall be reduced
by the credit allowed under subsection (a) for
the taxable year (other than the domestically
produced agriculture credit), and
``(C) with respect to the application of section
39, subsection (a) of such section shall be applied--
``(i) in paragraphs (1)(B) and (2)(B)
thereof, by substituting `10 taxable years' for
`20 taxable years' each place it appears, and
``(ii) in paragraph (2)(A), by substituting
`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 calendar 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 following 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.
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