Kelly, Thompson Lead Introduction of the Supporting Innovation in Agriculture Act

Mar 06, 2025

U.S. Representatives Mike Kelly (R-PA), Chairman of the Ways & Means Subcommittee on Tax, and Mike Thompson (D-CA), Ranking Member of the Ways & Means Subcommittee on Tax, introduced the Supporting Innovation in Agriculture Act. The bipartisan, legislation provides tax incentives to accelerate the deployment of innovative farming technologies for U.S. specialty crop producers.

"Agriculture supports one out of every ten jobs in Pennsylvania, making this industry a leading economic driver in the commonwealth. The Supporting Innovation in Agriculture Act will allow for farmers and agricultural leaders to not only succeed today, but it will allow them to better utilize innovative technologies to allow producers to succeed for years to come," said Rep. Kelly.

"California’s specialty crop producers are critical to our state and national economy. These tax incentives will no doubt help bolster our specialty crop industry here at home and across the nation. It’s great to join my colleague Rep. Kelly to introduce the Supporting Innovation in Agriculture Act to prompt innovation and keep our farmers competitive on the world stage,” said Rep. Thompson.

“The CEA Alliance applauds Chairman Mike Kelly, Ranking Member Mike Thompson, and the bill’s co-sponsors for introducing the Supporting Innovation in Agriculture Act,” said Tom Stenzel, Executive Director of the CEA Alliance. “The Supporting Innovation in Agriculture Act fills an important policy gap for the diverse specialty crop industry and will ensure that producers can leverage innovative technologies to grow more with less.”

“Accelerating the deployment of innovative technologies for specialty crop producers will strengthen the resilience of our fresh food supply chains and help producers across the country grow more food with fewer resources,” said Ted McKinney, CEO of the National Association of State Departments of Agriculture. “NASDA applauds the introduction of the Supporting Innovation in Agriculture Act and thanks Chairman Kelly, Ranking Member Thompson, and the bill’s co-sponsors for their efforts to reduce barriers for producers adopting innovative technologies in their operations.”

“The Coalition for Specialty Crop Innovation commends Chairman Mike Kelly and Ranking Member Mike Thompson for their leadership and welcomes the introduction of the Supporting Innovation in Agriculture Act,” said Colin O’Neil, Managing Director of the Coalition for Specialty Crop Innovation. “From Pennsylvania to California, Missouri to Massachusetts, innovative technologies will be essential for America’s specialty crop producers across the country—helping to make farm operations more resilient, more sustainable, and ultimately more competitive on the global stage.”

BACKGROUND
Our country’s food supply has long been a bipartisan concern. Unfortunately, the resilience of our domestic fresh food supply is under threat by recent supply chain disruptions, more extreme weather and drought conditions, worsening pest and disease pressures, rising food imports and inflationary pressures, and the repercussions of labor shortages.

The use of innovative farming technologies can be a significant way of increasing the domestic production of fruits, vegetables, tree nuts and other specialty crops while contributing to greater surety of supply, environmental conservation, and traceability throughout the supply chain. Unfortunately, existing farm programs are not always well suited to help many specialty crop producers address the high upfront capital costs associated with innovative farming technologies and systems. In addition, many specialty crop businesses do not have the tax liability to take advantage of existing tax incentives.

Specifically, the Supporting Innovation in Agriculture Act would provide a 10-year investment tax credit to specialty crop growers to help defray a portion of the high capital costs associated with the deployment of precision agriculture technologies and controlled environment agriculture technologies. H.R. 9263 will ensure that producers are able to leverage the innovative tools they need to compete on the global stage while at the same time improving the resilience of our domestic fresh food supply chains.

Read the full text of the bill here.

This bill is supported by over 50 national and state organizations and trade associations including the International Fresh Produce Association, National Association of State Departments of Agriculture, FMI – The Food Industry Association, Agricultural Retailers Association, the CEA Alliance, and many more. To see the list as of today, click here.

The bill is also supported by the state agriculture secretaries and commissioners from over 30 states, including Alaska, Colorado, Connecticut, Georgia, Hawaii, Kentucky, Maryland, Massachusetts, Michigan, Missouri, Montana, Nevada, New Hampshire, New Jersey, New Mexico, North Carolina, North Carolina, Ohio, Oregon, Pennsylvania, Rhode Island, South Carolina, Tennessee, Texas, Utah, Vermont, Virginia, Washington, West Virginia, Wisconsin, and Wyoming. To see the support letter as of today, click here.

Source : house.gov
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