PANELS Act

Section 48(a)(3) of the Internal Revenue Code of 1986 is amended by striking the period at the end and inserting, or property which is located on prime farmland or unique farmland if such property is used for generating solar energy.

Section 48(a)(5)(D) of such Code is amended—

(A) in clause (iii), by striking and at the end,

(B) in clause (iv), by striking the period at the end and inserting, and, and

(C) by adding at the end the following new clause:

(v) which, in the case of property used for the purpose of generating solar energy, is not located on prime farmland or unique farmland.

Section 48(c) of such Code is amended by adding at the end the following new paragraph:

The terms prime farmland and unique farmland have the meaning given such terms in part 657 of title 7, Code of Federal Regulations.

Section 48(e)(2)(A) of such Code is amended—

(A) in clause (ii), by striking and at the end,

(B) in clause (iii), by striking the period at the end and inserting, and, and

(C) by adding at the end the following new clause:

(iv) which, in the case of a facility used for generating solar energy, is not located on prime farmland or unique farmland.

Section 45Y(b)(1) is amended—

(1) in subparagraph (A), by striking subparagraphs (B), (C), and (D), and inserting subparagraphs (B), (C), (D), and (E), and

(2) by adding at the end the following new subparagraph:

The term qualified facility shall not include any facility used for generating solar energy if such facility is located on prime farmland or unique farmland (as such terms are defined in section 48(c)(9)).

The amendments made by this section shall apply to property placed in service after the date of the enactment of this Act.