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HR1707FEDERALin_committee

Grown in America Act of 2025

February 27, 2025

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Where This Stands

Introduced
Committee
Floor Vote
Passed
Signed

Currently in_committee. The next step in the legislative lifecycle is Floor Vote.

Last action
Referred to the House Committee on Ways and Means.Feb 27, 2025

Version history

Only one version on file - nothing to compare yet. As later stages (committee substitute, engrossed, enrolled) are captured, the redline appears here.

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The Frame

What this does

If passed, this bill would provide a tax credit of up to $100 million per year to businesses that increase their use of U.S.-grown agricultural products, with eligibility thresholds rising annually from 50% in 2026 to 85% after 2033.

Who is mentioned in the record

Potentially affected actors named in the source documents. Mention is not a position.

Food and beverage manufacturers

These businesses may receive tax credits based on the percentage of U.S.-grown agricultural commodities they purchase for their production processes.

Agricultural cooperatives

These organizations may elect to apportion the tax credit among their patrons based on the volume of business conducted.

U.S. agricultural producers

These producers may see changes in demand for their commodities as manufacturers adjust purchasing to meet the bill's domestic sourcing thresholds.

What changed

Current stage: in_committee.

What's next

Floor Vote.

Summary

This bill proposes a new federal tax credit for businesses that purchase American-grown agricultural commodities for use in food products. To qualify, companies must meet increasing annual requirements for the percentage of their total agricultural inputs that are sourced domestically.

Key Facts

  • The bill establishes a tax credit equal to 25% of a taxpayer's total agricultural input costs, capped at $100 million per year.
  • To qualify, a taxpayer must meet a minimum 'applicable percentage' of domestic agricultural input costs relative to total input costs.
  • The domestic sourcing threshold starts at 50% for 2026 and increases annually to 85% for years after 2033.
  • The credit is calculated based on a 3-year rolling average of domestic versus total agricultural input costs.
  • Agricultural commodities must be marketed for human consumption or used to produce products for human consumption to qualify.
  • The definition of agricultural commodities excludes live animals.
  • Eligible cooperative organizations may elect to pass the tax credit on to their patrons based on the value of business conducted.
  • The Secretary of Agriculture is authorized to exclude specific agricultural commodities from the calculation of total input costs.
  • The credit is only available for products sold for human consumption without further processing beyond the taxpayer's production stage.

Frequently Asked Questions

Who is eligible for this tax credit?
Businesses that purchase agricultural commodities for use in producing food products for human consumption, provided they meet specific domestic sourcing thresholds.
How much is the tax credit worth?
It is 25% of the taxpayer's total agricultural input costs, up to a maximum of $100 million per year.
What happens if a company uses foreign-grown ingredients?
The company can still qualify for the credit as long as their total domestic sourcing percentage meets the required annual threshold (starting at 50% in 2026).

Why It Matters

If passed, this bill would provide a tax credit of up to $100 million per year to businesses that increase their use of U.S.-grown agricultural products, with eligibility thresholds rising annually from 50% in 2026 to 85% after 2033.

News Coverage

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Sponsors

Discoveries

Patterns POLISCOPE noticed across the record. These are observations to investigate, not conclusions.

policy shift100% confidence

Increasing Domestic Sourcing Requirements

The bill implements a long-term, escalating mandate for domestic sourcing, moving from 50% in 2026 to 85% by 2033, effectively forcing a gradual shift in supply chain reliance for participating companies.

Connected Entities

personMike CareyCo-sponsor of the bill.Map →
personJim CostaCo-sponsor of the bill.Map →
organizationCommittee on Ways and MeansThe House committee to which the bill was referred.Map →
personDavid KustoffPrimary sponsor of the bill in the House of Representatives.Map →
personDavid RouzerCo-sponsor of the bill.Map →
personMark AlfordCo-sponsor of the bill.Map →

Analysis Score

0–100
  • Significance65
    How much this matters to a regular citizen
  • Controversy30
    Intensity of disagreement among stakeholders
  • Entertainment10
    Compellingness for a non-policy-wonk reader
  • Buzz25
    Current news / social attention level

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