[Congressional Bills 108th Congress]
[From the U.S. Government Publishing Office]
[S. 2872 Introduced in Senate (IS)]







108th CONGRESS
  2d Session
                                 S. 2872

   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

                           September 30, 2004

  Mr. Bunning (for himself and Mr. Nelson of Nebraska) 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 ``The Agricultural Business Security 
Tax Credit Act of 2004''.

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. 45G. 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 chemical 
or any food-use 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) $50,000, 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, or distributing food-use 
        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, 
which is held for sale in the trade or business of being a retailer of 
agricultural products.
    ``(f) Food-Use Pesticide.--For purposes of this section, the term 
`food-use 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 the purpose of protecting any specified 
        hazardous chemical or any food-use 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 (14), by striking the period at the end of paragraph (15) and 
inserting ``, plus'', and by adding at the end the following new 
paragraph:
            ``(16) in the case of an eligible agricultural business (as 
        defined in section 45G(d)), the agricultural chemicals security 
        credit determined under section 45G(a).''.
    (c) No Carrybacks.--Subsection (d) of section 39 of such Code 
(relating to carryback and carryforward of unused credits) is amended 
by adding at the end the following:
            ``(11) No carryback of section 46g credit before effective 
        date.--No portion of the unused business credit for any taxable 
        year which is attributable to the agricultural chemicals 
        security credit determined under section 45G may be carried 
        back to a taxable year beginning before the date of the 
        enactment of this paragraph.''.
    (d) Denial of Double Benefit.--Section 280C of such Code is amended 
by adding at the end the following new subsection:
    ``(d) 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 45G for the taxable year which is equal to the amount of the 
credit determined for such taxable year under section 45G(a).''.
    (e) 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. 45G. Agricultural chemicals security credit.''.
    (f) Effective Date.--The amendments made by this section shall 
apply to amounts paid or incurred after the date of the enactment of 
this Act.
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