[Congressional Bills 112th Congress]
[From the U.S. Government Publishing Office]
[H.R. 317 Introduced in House (IH)]

112th CONGRESS
  1st Session
                                H. R. 317

 To amend the Internal Revenue Code of 1986 to allow a credit against 
              tax for certain fruit and vegetable farmers.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                            January 19, 2011

   Mr. Baca 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 allow a credit against 
              tax for certain fruit and vegetable farmers.

    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 ``Fresh Fruit and Vegetable Grower Tax 
Incentive Act of 2011''.

SEC. 2. FRUIT AND VEGETABLE SMALL FARM CREDIT.

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

``SEC. 45S. FRUIT AND VEGETABLE SMALL FARM CREDIT.

    ``(a) Allowance of Credit.--For purposes of section 38, in the case 
of an eligible taxpayer, the fruit and vegetable small farm credit 
determined under this section for such taxable year is an amount equal 
to the lesser of--
            ``(1) $10,000, or
            ``(2) the taxable income of the taxpayer for the taxable 
        year attributable to the trade or business of fruit and 
        vegetable farming.
    ``(b) Eligible Taxpayer.--For purposes of this section--
            ``(1) In general.--The term `eligible taxpayer' means any 
        taxpayer--
                    ``(A) who is engaged in the trade or business of 
                fruit and vegetable farming,
                    ``(B) with respect to whom at least 75 percent of 
                taxable income attributable to the trade or business of 
                farming for the preceding taxable year was attributable 
                to fruit and vegetable farming,
                    ``(C) whose gross receipts attributable to fruit 
                and vegetable farming for the preceding taxable year 
                are not more than $500,000, and
                    ``(D) who is a farm-related taxpayer.
            ``(2) Fruit and vegetable farming.--The term `fruit and 
        vegetable farming' means the farming and sale of fruits, 
        vegetables, or both, in fresh form generally considered as 
        perishable, but does not include any grains or any perishable 
        fruits and vegetables which have been manufactured into 
        articles of food of a different kind or character.
            ``(3) Farm-related taxpayer.--The term `farm-related 
        taxpayer' means--
                    ``(A) any farm-related taxpayer (as defined in 
                section 464(f)(3)(B)), or
                    ``(B) any corporation, partnership, or other 
                entity, substantially all of which is owned by one or 
                more farm-related taxpayers.
    ``(c) Special Rules.--For purposes of this section--
            ``(1) Aggregation rules.--All persons which are treated as 
        a single employer under subsections (a) and (b) of section 52 
        shall be treated as a single taxpayer.
            ``(2) Estates and trusts.--Under regulations prescribed by 
        the Secretary, rules similar to the rules of subsection (d) of 
        section 52 shall apply.
            ``(3) Tax exempt organizations.--No credit shall be allowed 
        under section 38 for any fruit and vegetable small farm credit 
        determined under this subpart to any organization which is 
        exempt from tax under this chapter.
            ``(4) Allocation in the case of partnerships.--In the case 
        of partnerships, the credit shall be allocated among partners 
        under regulations prescribed by the Secretary.''.
    (b) 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. 45S. Fruit and vegetable small farm credit.''.
    (c) Conforming Amendment.--Subsection (b) of section 38 of such 
Code is amended by striking ``plus'' at the end of paragraph (35), by 
striking the period at the end of paragraph (36) and inserting ``, 
plus'', and by adding at the end the following new paragraph:
            ``(37) the fruit and vegetable small farm credit determined 
        under section 45S(a).''.
    (d) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after the date of the enactment of 
this Act.
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