Agricultural Business Security Tax Credit Act of 2005

109th CONGRESS
1st Session

S. 2052

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

IN THE SENATE OF THE UNITED STATES

November 18, 2005

Mr. ROBERTS (for himself, Mr. NELSON of Nebraska, Mr. ISAKSON, and Mr. SANTORUM) introduced the following bill; which was read twice and referred to the Committee on Finance

A BILL

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. 45N. 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 30 percent of the qualified security expenditures for the taxable year.

`(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) Qualified Chemical Security Expenditure- For purposes of this section, the term `qualified chemical security expenditure' means, with respect to any eligible agricultural business for any taxable year, any amount paid or incurred by such business during such taxable year for--

`(1) employee security training and background checks,

`(2) limitation and prevention of access to controls of specified agricultural chemicals stored at the facility,

`(3) tagging, locking tank valves, and chemical additives to prevent the theft of specified agricultural chemicals or to render such chemicals unfit for illegal use,

`(4) protection of the perimeter of specified agricultural chemicals,

`(5) installation of security lighting, cameras, recording equipment, and intrusion detection sensors,

`(6) implementation of measures to increase computer or computer network security,

`(7) conducting a security vulnerability assessment,

`(8) implementing a site security plan, and

`(9) such other measures for the protection of specified agricultural chemicals as the Secretary may identify in regulation.

Amounts described in the preceding sentence shall be taken into account only to the extent that such amounts are paid or incurred for the purpose of protecting specified agricultural chemicals.

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

`(1) selling agricultural products, including specified agricultural chemicals, at retail predominantly to farmers and ranchers, or

`(2) manufacturing, formulating, distributing, or aerially applying specified agricultural chemicals.

`(f) Specified Agricultural Chemical- For purposes of this section, the term `specified agricultural chemical' means--

`(1) any fertilizer commonly used in agricultural operations which is listed under--

`(A) section 302(a)(2) of the Emergency Planning and Community Right-to-Know Act of 1986,

`(B) section 101 of part 172 of title 49, Code of Federal Regulations, or

`(C) part 126, 127, or 154 of title 33, Code of Federal Regulations, and

`(2) 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 crops grown for food, feed, or fiber.

`(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 agricultural chemical and for other purposes, and

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

`(i) Termination- This section shall not apply to any amount paid or incurred after December 31, 2010.'.

(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 (25), by striking the period at the end of paragraph (26) and inserting `, plus', and by adding at the end the following new paragraph:

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

`(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 45N for the taxable year which is equal to the amount of the credit determined for such taxable year under section 45N(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. 45N. Agricultural chemicals security credit'.

(e) Effective Date- The amendments made by this section shall apply to amounts paid or incurred after December 31, 2005.

END