Protecting American Farmland Act

This bill establishes new restrictions to prevent the conversion of prime farmland for solar energy development. It prohibits federal agencies from using federal funds, including loans or loan guarantees, for ground-mounted solar energy projects primarily intended for electricity sale if such projects would result in the conversion of prime farmland. The term "conversion" refers to any activity that causes the farmland to no longer meet state requirements for agricultural production. Additionally, the legislation amends the Internal Revenue Code to exclude solar energy property and facilities located on prime farmland from eligibility for several federal clean energy tax credits. These include the residential clean energy credit, the renewable electricity production credit, the clean electricity production credit, the energy credit, and the clean electricity investment credit. These provisions aim to remove financial incentives for solar energy installations on valuable agricultural land, applying to property and facilities placed in service after the bill's enactment.