[Congressional Record Volume 144, Number 125 (Friday, September 18, 1998)]
[Senate]
[Page S10616]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




  S. 2493--THE ANIMAL AGRICULTURE ENVIRONMENTAL INCENTIVES ACT OF 1998

  S. 2493, introduced by Mr. Harkin on September 17, is as follows:

                                S. 2493

       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 ``Animal Agriculture 
     Environmental Incentives Act of 1998''.

     SEC. 2. ALLOWANCE OF CREDIT FOR NUTRIENT MANAGEMENT COSTS OF 
                   ANIMAL FEEDING OPERATIONS.

       (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. 45D. ANIMAL FEEDING OPERATION EQUIPMENT CREDIT.

       ``(a) In General.--For purposes of section 38, the animal 
     feeding operation equipment credit determined under this 
     section for the taxable year is an amount equal to 25 percent 
     of the eligible nutrient management costs of a taxpayer for 
     the taxable year.
       ``(b) Eligible Nutrient Management Costs.--For purposes of 
     this section--
       ``(1) In general.--The term `eligible nutrient management 
     costs' means amounts paid or incurred by a taxpayer to 
     purchase a calibrated manure spreader or eligible processing 
     equipment for use at an animal feeding operation owned by the 
     taxpayer.
       ``(2) Calibrated manure spreader.--The term `calibrated 
     manure spreader' means equipment (including any associated 
     geostationary positioning satellite equipment) which is used 
     by the taxpayer exclusively for the precision application of 
     manure to land in accordance with a comprehensive nutrient 
     management plan.
       ``(3) Eligible processing equipment.--
       ``(A) In general.--The term `eligible processing equipment' 
     means equipment or structures used by the taxpayer 
     exclusively for processing manure.
       ``(B) Exclusion.--The term `eligible processing equipment' 
     does not include equipment used exclusively for the simple 
     containment or transportation of manure.
       ``(c) Other Definitions.--For purposes of this section--
       ``(1) Animal feeding operation.--The term `animal feeding 
     operation' means a facility for the milking of dairy cows or 
     the raising of livestock or poultry (including egg 
     production) for commercial sale.
       ``(2) Application.--The term `application' means laying, 
     spreading on, irrigating, injecting, or otherwise placing 
     manure on land by any means.
       ``(3) Comprehensive nutrient management plan.--The term 
     `comprehensive nutrient management plan' means a written plan 
     prepared in accordance with applicable Federal and State laws 
     and regulations.
       ``(4) Manure.--The term `manure' means--
       ``(A) the excreta of an animal or other organic byproduct 
     of an animal feeding operation, including litter, bedding, 
     dead animals, composted animal carcasses, milk house waste, 
     or other residual organic matter, and
       ``(B) water or any other material mixed with such excreta 
     or byproduct for purposes of collection, handling, 
     containment, or processing of such excreta or byproduct.
       ``(5) Precision application.--The term `precision 
     application' means the controlled application of manure to 
     land in a manner which distributes a specified amount of 
     manure, as determined by the nitrogen or phosphorous content 
     of the manure, across a specified area of land.
       ``(6) Processing.--The term `processing' means any 
     mechanical, physical, or chemical treatment which--
       ``(A) alters the concentration of nitrogen, phosphorous, 
     water, or other constituents in manure to facilitate--
       ``(i) manure application on land covered by the 
     requirements of a comprehensive nutrient management plan, or
       ``(ii) use of manure or processed manure for commercial 
     purposes other than land application on land owned or 
     controlled by the taxpayer,
       ``(B) enhances the value of manure as a plant fertilizer or 
     soil amendment, or
       ``(C) utilizes manure as an energy source.
       ``(d) Special Rules.--
       ``(1) Reduction in basis.--For purposes of this subtitle, 
     if a credit is determined under this section with respect to 
     any property, the basis of such property shall be reduced by 
     the amount of the credit so determined.
       ``(2) Pass-thru in the case of estates and trusts.--For 
     purposes of this section, under regulations prescribed by the 
     Secretary, rules similar to the rules of subsection (d) of 
     section 52 shall apply.
       ``(3) Allocation in the case of partnerships.--For purposes 
     of this section, in the case of partnerships, the credit 
     shall be allocated among partners under regulations 
     prescribed by the Secretary.''
       (b) Conforming Amendments.--
       (1) Section 38(b) of the Internal Revenue Code of 1986 is 
     amended--
       (A) by striking ``plus'' at the end of paragraph (11),
       (B) by striking the period at the end of paragraph (12), 
     and inserting ``, plus'', and
       (C) by adding at the end the following new paragraph:
       ``(13) the animal feeding operation equipment credit 
     determined under section 45D.''
       (2) The table of sections for subpart D of part IV of 
     subchapter A of chapter 1 is amended by adding at the end the 
     following new item:

``Sec. 45D. Animal feeding operation equipment credit.''
       (c) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after December 31, 
     1998.

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