[Congressional Bills 112th Congress]
[From the U.S. Government Publishing Office]
[H.R. 279 Introduced in House (IH)]

112th CONGRESS
  1st Session
                                H. R. 279

 To amend the Internal Revenue Code of 1986 to provide for tax exempt 
    qualified small issue bonds to finance agricultural processing 
                               property.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                            January 12, 2011

 Mr. Fortenberry 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 for tax exempt 
    qualified small issue bonds to finance agricultural processing 
                               property.

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

SECTION 1. QUALIFIED SMALL ISSUE BONDS FOR AGRICULTURAL PROCESSING 
              PROPERTY.

    (a) In General.--Subparagraph (B) of section 144(a)(12) of the 
Internal Revenue Code of 1986 is amended by striking ``or'' at the end 
of clause (i), by redesignating clause (ii) as clause (iii), and by 
inserting after clause (i) the following new clause:
                            ``(ii) any agricultural processing 
                        property, or''.
    (b) Agricultural Processing Property.--Paragraph (12) of section 
144(a) of such Code is amended by adding at the end the following new 
subparagraph:
                    ``(D) Agricultural processing property.--
                            ``(i) In general.--For purposes of this 
                        paragraph, the term `agricultural processing 
                        property' means any depreciable property or 
                        land, which is used primarily for the 
                        processing of agricultural products.
                            ``(ii) Processing.--For purposes of this 
                        subparagraph, the term `processing' includes 
                        pasteurizing, slaughtering, washing, peeling, 
                        cutting, freezing, preserving, and packaging. 
                        Such term does not include planting, raising, 
                        harvesting, gathering, breeding, feeding, or 
                        milking.
                            ``(iii) Agricultural products.--For 
                        purposes of this subparagraph, the term 
                        `agricultural products' includes plant and 
                        dairy products, meats, fish, and poultry.''.
    (c) Exception to Limitation on Acquisition of Depreciable Farm 
Property.--Subparagraph (B) of section 144(a)(11) of such Code is 
amended by inserting ``(other than agricultural processing property, as 
defined in paragraph (12)(D))'' after ``means property''.
    (d) Exception to Prohibition on Acquisition of Land for Farming 
Purposes.--Subsection (c) of section 147 of such Code is amended by 
adding at the end the following new paragraph:
            ``(4) Exception for agricultural processing property.--
        Paragraph (1)(B) shall not apply with respect to any 
        agricultural processing property (as defined in section 
        144(a)(12)(D)).''.
    (e) Exception to Prohibition on Acquisition of Existing Property.--
Subsection (d) of section 147 of such Code is amended by adding at the 
end the following new paragraph:
            ``(5) Exception for agricultural processing property.--
        Paragraph (1) shall not apply with respect to any agricultural 
        processing property (as defined in section 144(a)(12)(D)).''.
    (f) Effective Date.--The amendments made by this section shall 
apply to bonds issued after the date of the enactment of this Act.
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