[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[H.R. 713 Introduced in House (IH)]






109th CONGRESS
  1st Session
                                H. R. 713

   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 HOUSE OF REPRESENTATIVES

                            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

_______________________________________________________________________

                                 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. 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.
                                 <all>