PANELS Act

This bill modifies tax credits for solar energy projects by excluding facilities located on prime or unique farmland from eligibility. Developers seeking the solar energy investment credit (Section 48) or clean electricity production credit (Section 45Y) cannot claim these credits if their project is on land classified as "prime farmland" or "unique farmland" under USDA definitions. The law adopts existing USDA land classifications (from 7 CFR Part 657) to define these terms for tax purposes. This directly affects solar developers planning projects on high-quality agricultural land, removing a key financial incentive for such developments.