HR 1707

The Grown in America Act of 2025 creates a new tax credit for businesses that purchase agricultural commodities produced in the United States. The credit is calculated as the lesser of 25% of domestic agricultural input costs (up to a maximum of $100 million) or the percentage of domestic agricultural input costs relative to total agricultural input costs, with this percentage increasing over time. To qualify, businesses must demonstrate that domestic agricultural input costs represent at least 50% of their total costs in the first year, rising to 85% by 2034, and the credit can be carried forward for up to 10 years. The legislation also outlines how this credit interacts with existing business tax credits and establishes a list of commodities deemed ‘unfeasibly’ domestically produced.