The PANELS Act would prohibit solar energy projects from receiving federal tax credits if they are built on prime or unique farmland as defined by the U.S. Department of Agriculture. Specifically, the legislation amends the Internal Revenue Code to exclude solar properties located on these protected agricultural lands from eligibility for the energy investment credit, the clean electricity production credit, and other related tax incentives. The bill affects solar developers and companies that might otherwise claim these tax credits to offset the costs of building solar installations. The restrictions would take effect for any solar projects placed into service after the bill becomes law. By tying tax credit eligibility to farmland protection, the legislation aims to encourage solar development on non-agricultural land rather than on productive farming areas.