Grown in America Act of 2025
Congress Proposes Tax Credits Up to $100 Million for Companies Buying American-Grown Food
Stalled
No legislative action in over 90 days.
Legislative Progress
Key Points
- This bill creates a new tax credit for businesses that buy ingredients grown or raised in the United States. To qualify, companies must use these American products to make food for people to eat.
- The credit is worth up to 25% of what a company spends on its ingredients, with a maximum limit of $100 million per year for any single business. This is intended to encourage large food makers to buy from domestic suppliers rather than foreign ones.
- To keep getting the tax break, companies must increase the amount of American products they buy over time. The requirement starts at 50% of their total ingredients in 2026 and rises to 85% by 2034.
- The Secretary of Agriculture will create a special list of items that cannot be grown in the U.S. Companies will not be penalized for buying those specific items from other countries if they are not available here.
- If passed, these rules would begin in 2026. The goal is to support American farmers and fishers by making it more affordable for food companies to buy from them.
Impact Analysis
Personal Impact
Small food manufacturers could benefit from the tax credit if they already source most of their ingredients domestically. However, the credit is structured as a general business credit with a $100 million cap, which primarily benefits large corporations with massive ingredient budgets. Small businesses may face higher ingredient costs if increased demand for domestic commodities drives up prices, and may lack the administrative capacity to track and document their sourcing percentages for compliance.
Broader Impacts
Milestones
Referred to the House Committee on Ways and Means.
Introduced in House
The bill was officially filed and given a number. It now enters the legislative queue.
Votes
No votes have been recorded for this legislation yet.
Related News
3 articles
Opinion: The right incentives can protect domestic crop production
The bipartisan Grown in America Act creates a new incentive for American manufacturers to purchase agriculture commodities from U.S. farmers. This legislation also has the opportunity to provide a much-needed boost to American growers and manufacturers, including family farmers.
Tennessee Congressman Files 'Grown in America Act' to Incentivize Buying from U.S. Farmers
Rep. David Kustoff filed the Grown in America Act to incentivize corporations to buy farm commodities grown in the U.S. through a tax credit accounting for 25 percent of the total cost, with major companies able to save up to $100 million per year by buying American.
GM's $8.15M lobbying surge targets EV credits, auto tech, and defense contracts
General Motors is actively lobbying on several specific bills, including H.R. 1707, the Grown in America Act, as part of a broad legislative agenda spanning auto technology, defense contracts, and tax and trade provisions.
Source Information
Document Type
Congressional Bill
Official Title
Grown in America Act of 2025
Data Sources
Sponsor
Cosponsors
(32)Analysis generated by AI. Always verify with official sources.