To amend the Internal Revenue Code of 1986 to provide a credit to certain agriculture-related businesses for the cost of protecting certain chemicals.

February 9, 2005

Mr. LEWIS of Kentucky (for himself, Mr. KINGSTON, Mr. BERRY, Mrs. CUBIN, Mr. BISHOP of Georgia, Mr. HOSTETTLER, Mr. TERRY, Mr. MCINTYRE, Mr. JENKINS, Mr. BUTTERFIELD, Mr. WHITFIELD, Mr. ENGLISH of Pennsylvania, and Mr. ROGERS of Kentucky) introduced the following bill; which was referred to the Committee on Ways and Means

To amend the Internal Revenue Code of 1986 to provide a credit to certain agriculture-related businesses for the cost of protecting certain chemicals.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

This Act may be cited as the `Agricultural Business Security Tax Credit Act of 2005'.

SEC. 2. AGRICULTURAL CHEMICALS SECURITY CREDIT.

(a) In General- Subpart D of part IV of subchapter A of chapter 1 of the Internal Revenue Code of 1986 (relating to business related credits) is amended by adding at the end the following new section:

`SEC. 45J. AGRICULTURAL CHEMICALS SECURITY CREDIT.

`(a) In General- For purposes of section 38, in the case of an eligible agricultural business, the agricultural chemicals security credit determined under this section for the taxable year is 50 percent of the aggregate amount paid or incurred by the eligible agricultural business for the purpose of protecting any specified hazardous chemicals or any specified pesticide from unauthorized access.

`(b) Facility Limitation- The amount of the credit determined under subsection (a) with respect to any facility for any taxable year shall not exceed--

`(1) $100,000, reduced by

`(2) the aggregate amount of credits determined under subsection (a) with respect to such facility for the 5 prior taxable years.

`(c) Annual Limitation- The amount of the credit determined under subsection (a) with respect to any taxpayer for any taxable year shall not exceed $2,000,000.

`(d) Eligible Agricultural Business- For purposes of this section, the term `eligible agricultural business' means any person in the trade or business of--

`(1) being a retailer of agricultural products, or

`(2) manufacturing, formulating, distributing, or aerially applying fertilizer or specified pesticides.

`(e) Specified Hazardous Chemicals- For purposes of this section, the term `specified hazardous chemical' means any extremely hazardous substance listed under section 302(a)(2) of the Emergency Planning and Community Right-to-Know Act of 1986, and any hazardous material listed under section 101 of part 172 of title 49, Code of Federal Regulations, or part 126, 127, or 154 of title 33, Code of Federal Regulations.

`(f) Specified Pesticide- For purposes of this section, the term `specified pesticide' means any pesticide (as defined in section 2(u) of the Federal Insecticide, Fungicide, and Rodenticide Act), including all active and inert ingredients thereof, which is customarily used on food, feed, or crops.

`(g) Controlled Groups- Rules similar to the rules of paragraphs (1) and (2) of section 41(f) shall apply for purposes of this section.

`(h) Regulations- The Secretary may prescribe such regulations as may be necessary or appropriate to carry out the purposes of this section, including regulations which--

`(1) provide for the proper treatment of amounts which are paid or incurred for purpose of protecting any specified hazardous chemical or any specified pesticide and for other purposes, and

`(2) provide for the treatment of related properties as one facility for purposes of subsection (b).'.

(b) Credit Allowed as Part of General Business Credit- Section 38(b) of such Code is amended by striking `plus' at the end of paragraph (18), by striking the period at the end of paragraph (19) and inserting `, plus', and by adding at the end the following new paragraph:

`(20) in the case of an eligible agricultural business (as defined in section 45J(d)), the agricultural chemicals security credit determined under section 45J(a).'.

(c) Denial of Double Benefit- Section 280C of such Code is amended by adding at the end the following new subsection:

`(e) Credit for Security of Agricultural Chemicals- No deduction shall be allowed for that portion of the expenses (otherwise allowable as a deduction) taken into account in determining the credit under section 45J for the taxable year which is equal to the amount of the credit determined for such taxable year under section 45J(a).'.

(d) Clerical Amendment- The table of sections for subpart D of part IV of subchapter A of chapter 1 of such Code is amended by adding at the end the following new item:

`Sec. 45J. Agricultural chemicals security credit.'.

(e) Effective Date- The amendments made by this section shall apply to amounts paid or incurred during taxable years ending after the date of the enactment of this Act.

END