Grown in America Act

Summary#

This bill creates a new tax credit called the "domestically produced agriculture credit" (section 45BB) to encourage businesses to buy agricultural commodities that are produced in the United States. The credit amount for a taxable year is the lesser of: (1) 25 percent of a taxpayer's total agricultural input costs multiplied by the taxpayer's "applicable percentage," or (2) $100,000,000. The applicable percentage is the share of a taxpayer's total agricultural input costs that were for commodities produced in the United States.

The bill defines domestic and foreign agricultural input costs as expenses a taxpayer pays to buy agricultural commodities that are used in the taxpayer's trade or business to produce products in the United States that are sold for human consumption without further processing. The bill excludes from "total agricultural input costs" any commodity the Secretary of Agriculture lists as not feasibly producible domestically for a calendar year.

If a taxpayer's 3-year average applicable percentage does not meet rising thresholds (50% for 2026, increasing to 85% for years after 2033), the credit is reduced to zero for that taxable year. The bill allows eligible agricultural cooperatives to apportion the credit to patrons, treats related employers as a single taxpayer for the credit, and authorizes the Treasury Secretary to write regulations. It also adds the credit to the general business credit rules and includes special rules that affect how the credit limits and carryforward periods are applied.

The Secretary of Agriculture must publish a yearly list of agricultural commodities that cannot feasibly be produced in the United States. The changes apply to taxable years beginning after December 31, 2025.

What it means for you#

• Businesses that buy agricultural commodities and use them to make products sold for human consumption without further processing in the U.S. may qualify for this credit, if they can document domestic versus foreign input costs.
• The credit grows with a taxpayer's share of domestic purchases: the higher your share of domestic inputs, the larger the applicable percentage used to calculate the credit.
• If your 3-year average share of domestic inputs is below the year-specific threshold, you will not receive the credit for that year.
• Cooperatives can choose to pass the credit to patrons based on business volume. Related businesses treated as a single employer must be combined when calculating the credit.
• The credit becomes available for taxable years starting after December 31, 2025.

Expenses#

No publicly available information on an official estimate of the federal budget or revenue impact is included in the bill text or provided metadata. The bill does include program design details that affect costs: it caps the credit calculation per taxpayer at $100,000,000 per taxable year, bases credit size on 25% of total agricultural input costs times the domestic share, and changes how the credit fits into general business credit limits and carryforward rules.

Proponents' View#

No publicly available information.

Opponents' View#

No publicly available information.