,i #aahth ,,congress #b;d ,session ,h4 ,r4 #ibfc ,,in ,,the ,,house ,,of ,,representatives ,august #b1 #bjbd ,mr4 ,kelly of ,pennsylvania 7for himself and ,mr4 ,thompson of ,california7 introduced the following bill2 which was referred to the ,committee on ,ways and ,means ,a ,,bill ,to amend the ,internal ,revenue ,code of #aihf to establish a credit for investments in innovative agricultural technology4 #a4 ,short title ,this ,act may be cited as the ,supporting ,innovation in ,agriculture ,act of #bjbd4 #b4 ,credit for investment in innovative agricultural technology 7a7 ,in general ,subpart ,e of part ,,iv of subchapter ,a of chapter #a of the ,internal ,revenue ,code of #aihf is amended by inserting after section #dh;,e the following new section3 #dh;,f4 ,innovative agricultural technology investment credit 7a7 ,in general ,for purposes of section #df1 the innovative agricultural technology investment credit for any taxable year is an amount equal to #cj percent of the qualified investment for such taxable year with respect to any innovative agricultural technology project4 7b7 ,qualified investment 7#a7 ,in general ,for purposes of subsection 7a71 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 project4 7#b7 ,qualified property ,for purposes of this section1 the term qualified property means property-- 7,a7 which is-- 7i7 tangible personal property1 whether or not affixed to real property 7including equipment1 systems and their components1 materials1 machinery1 accessories1 and structural components71 which is used as an integral part of an innovative agricultural technology project1 or 7ii7 software1 a computer system1 or similar technology1 7,b7 with respect to which depreciation 7or amortization in lieu of depreciation7 is allowable1 and 7,c7 7i7 the construction1 reconstruction1 or erection of which is completed by the taxpayer1 or 7ii7 which is acquired by the taxpayer if the original use of such property commences with the taxpayer4 7#c7 ,innovative agricultural technology project ,the term innovative agricultural technology project means an agricultural technology or system-- 7,a7 which is placed in service before ,december #ca1 #bjce1 and 7,b7 for which the primary purpose is to produce1 store1 process1 and package specialty crops 7as defined in section #c of the ,specialty ,crops ,competitiveness ,act of #bjjd7 using-- 7i7 precision agriculture1 or 7ii7 controlled environment agriculture4 7c7 ,special rules 7#a7 ,certain process expenditure rules made ,applicable ,rules similar to the rules of subsections 7c77#d7 and 7d7 of section #df 7as in effect on the day before the date of the enactment of the ,revenue ,reconciliation ,act of #aiij7 shall apply for purposes of subsection 7a74 7#b7 ,denial of double benefit under grant programs ,rules similar to the rules of section #dh7;d7 shall apply for purposes of this section with respect to-- 7,a7 any renewable energy system1 energy efficiency improvement1 or equipment or system purchased1 made1 or installed using a grant provided under section #ijjg7;c7 of the ,farm ,security and ,rural ,investment ,act of #bjjb 7#g ,u4,s4,c4 #hajg7;c771 or 7,b7 any physical improvement to land made using a payment provided under the environmental quality incentives program established under subchapter ,a of chapter #d of subtitle ,d of title ,,xii of the ,food ,security ,act of #aihe 7#af ,u4,s4,c4 #chci;aa et seq474 7d7 ,definitions ,in this section-- 7#a7 ,controlled environment agriculture ,the term controlled environment agriculture means a closed1 indoor agricultural production system using controlled environment agriculture technology in which the environment and inputs can be controlled throughout the lifecycle of a crop4 7#b7 ,controlled environment agriculture technology ,the term controlled environment agriculture technology means any technology 7including equipment1 systems and their components1 materials1 and accessories that are necessary for the deployment of such technology7 that is required to create1 support1 and maintain the necessary growing environment for plants and directly contributes to the efficient production1 harvesting1 processing1 or packaging of agricultural products and goods1 including-- 7,a7 heating1 cooling1 thermal screening1 humidification1 dehumidification1 and air circulation systems1 7,b7 horticultural lighting systems and glazing materials1 7,c7 irrigation and water treatment and filtration systems1 7,d7 nutrient delivery and management1 7,e7 sensors and vision systems for gathering data within a commercial controlled environment agricultural facility1 7,f7 software1 including data management software1 advanced analytics1 machine learning systems and artificial intelligence systems1 designed as part of or sold in connection with controlled environment agriculture technology1 7,g7 robotics1 conveyance1 and automation systems1 including automated storage and retrieval equipment1 7,h7 automatic harvesting1 seeding1 transplanting1 and sanitation systems1 and 7,i7 any other technology1 as determined by the ,secretary1 that contributes to the efficient production1 harvesting1 processing1 or packaging of agricultural products and goods in commercial controlled environment agricultural facilities4 7#c7 ,precision agriculture ,the term precision agriculture means the use of on-farm precision agriculture technology in-- 7,a7 managing1 tracking1 or reducing crop production inputs1 including seed1 land1 fertilizer1 chemicals1 water1 and time1 7,b7 optimizing weed1 pest1 and disease identification1 7,c7 managing and tracking crop harvest and on-farm storage at a heightened level of spatial and temporal granularity to improve efficiencies1 reduce waste1 and maintain environmental quality1 and 7,d7 improving on-farm water conservation and irrigation efficiency4 7#d7 ,precision agriculture technology ,the term precision agriculture technology means any technology 7including equipment that is necessary for the deployment of such technology7 that directly contributes to a reduction in1 or improved efficiency of1 inputs used in specialty crop production1 harvesting1 and on-farm storage including-- 7,a7 ,global ,positioning ,system-based or geospatial mapping1 7,b7 satellite or aerial imagery1 7,c7 yield monitors1 7,d7 soil mapping1 7,e7 non-chemical weed and pest control technologies1 including autonomous laser weeders1 7,f7 vision systems1 remote sensors1 and temperature and soil moisture monitors1 7,g7 internet of things and telematics technologies1 7,h7 software1 including data management1 advanced analytics1 machine learning1 and artificial intelligence systems1 designed as part of or sold in connection with other precision agriculture technology1 7,i7 network connectivity products and solutions1 7,j7 ,global ,positioning ,system guidance or auto-steer systems1 7,k7 variable rate technology for applying inputs1 such as section control1 7,l7 robotics1 7,m7 uncrewed aircraft systems and uncrewed ground vehicles1 and 7,n7 any other technology1 as determined by the ,secretary1 that leads to a reduction in1 or improves efficiency of1 inputs used in crop production and harvesting1 which may include seed1 fertilizer1 chemicals1 water1 and time4 4 7b7 ,elective payment of credit ,section #fdag of such ,code is amended-- 7#a7 in subsection 7b71 by adding at the end the following3 7#ac7 ,the innovative agricultural technology investment credit under section #dh;,f4 1 and 7#b7 in subsection 7d77#a7-- 7,a7 in subparagraph 7,e71 by striking 7,c71 or 7,d7 each place it appears and inserting 7,c71 7,d71 or 7,e71 7,b7 by redesignating subparagraph 7,e7 7as amended by clause 7i77 as subparagraph 7,f71 and 7,c7 by inserting after subparagraph 7,d7 the following3 7,e7 ,election with respect to innovative agricultural technology investment credit ,if a taxpayer other than an entity described in subparagraph 7,a7 makes an election under this subparagraph with respect to any taxable year in which such taxpayer has1 after ,december #ca1 #bjbc1 placed in service qualified property which is part of an innovative agricultural technology project 7as defined in section #dh;,f7b771 such taxpayer shall be treated as an applicable entity for purposes of this section for such taxable year1 but only with respect to the credit described in subsection 7b77#ac74 4 7c7 ,transferability ,section #fdah7;f77#a77;,a7 of such ,code is amended by adding at the end the following new clause3 7xii7 ,the innovative agricultural technology investment credit determined under section #dh;,f4 4 7d7 ,conforming amendments 7#a7 ,section #df of such ,code is amended-- 7,a7 in paragraph 7#f71 by striking and at the end1 7,b7 in paragraph 7#g71 by striking the period at the end and inserting 1 and1 and 7,c7 by adding at the end the following3 7#h7 the innovative agricultural technology investment credit4 4 7#b7 ,section #di7;a77#a77;,c7 of such ,code is amended-- 7,a7 in clause 7vii71 by striking and at the end1 7,b7 in clause 7viii71 by striking the period at the end and inserting 1 and1 and 7,c7 by adding at the end the following3 7ix7 the basis of any qualified property which is part of an innovative agricultural technology project under section #dh;,f4 4 7#c7 ,section #ej7;a77#b77;,e7 of such ,code is amended by striking or #dh;,e7e7 and inserting #dh;,e7e71 or #dh;,f7c77#a74 7#d7 ,the table of sections for subpart ,e of part ,,iv of subchapter ,a of chapter #a of such ,code is amended by inserting after the item relating to section #dh;,e the following new item3 ,sec4 #dh;,f4 ,innovative agricultural technology investment credit4 4 7e7 ,effective date ,the amendments made by this section shall apply to property the construction of which began after ,january #a1 #bjbc4