CAFO Tax Credit Act - Amends the Internal Revenue Code to allow owners or operators of a concentrated animal feeding operation a business-related tax credit, up to $500,000 in a taxable year, for the cost of compliance with a national pollutant discharge elimination system permit issued under the Federal Water Pollution Control Act. Terminates such credit after 2010.
[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5775 Introduced in House (IH)]
109th CONGRESS
2d Session
H. R. 5775
To amend the Internal Revenue Code of 1986 to provide a credit to
certain concentrated animal feeding operations for the cost of
complying with environmental protection regulations.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
July 12, 2006
Mr. Osborne 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 concentrated animal feeding operations for the cost of
complying with environmental protection regulations.
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 ``CAFO Tax Credit Act''.
SEC. 2. CREDIT FOR CONCENTRATED 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. 45N. CREDIT FOR EPA COMPLIANCE COSTS FOR CONCENTRATED ANIMAL
FEEDING OPERATIONS.
``(a) Allowance of Credit.--
``(1) In general.--For purposes of section 38, in the case
of an eligible taxpayer, the EPA compliance credit determined
under this section for the taxable year is an amount equal to
the applicable percentage of the qualified compliance costs
paid or incurred by the eligible taxpayer during the taxable
year.
``(2) Applicable percentage.--For purposes of paragraph
(1), the applicable percentage shall be determined as follows:
``If the amount of qualified The applicable
compliance costs paid or incurred percentage is:
during the taxable year is:
Not over $100,000...................................... 100
Over $100,000 but not over $200,000.................... 80
Over $200,000 but not over $400,000.................... 60
Over $400,000.......................................... 40.
``(b) Limitation.--The amount of credit allowed under subsection
(a) for any taxable year shall not exceed $500,000.
``(c) Eligible Taxpayer.--For purposes of this section, the term
`eligible taxpayer' means an owner or operator of a concentrated animal
feeding operation (as defined under section 122.23 of title 40, Code of
Federal Regulations).
``(d) Qualified Compliance Costs.--For purposes of this section--
``(1) In general.--The term `qualified compliance costs'
means costs paid or incurred for compliance with a national
pollutant discharge elimination system permit issued under
section 402 of the Federal Water Pollution Control Act (33
U.S.C. 1342).
``(2) Exclusion for amounts funded by grants, etc.--The
term `qualified compliance costs' shall not include any amount
to the extent such amount is funded by any grant, contract, or
otherwise by another person (or any governmental entity).
``(e) Special Rules.--
``(1) Reduction in basis.--For purposes of this subtitle,
if a credit is determined under this section for any
expenditure with respect to any property, the increase in basis
of such property which would (but for this subsection) result
from such expenditure shall be reduced by the amount of the
credit so determined.
``(2) When costs paid or incurred.--For purposes of this
section, a cost shall be treated as paid or incurred in the
year in which the taxpayer achieves compliance with the
national pollutant discharge elimination system permit issued
under section 402 of the Federal Water Pollution Control Act
(33 U.S.C. 1342).
``(3) Denial of double benefit.--No deduction or other
credit shall be allowed under this chapter for any amount taken
into account in determining the credit under this section.
``(f) Termination.--This section shall not apply to expenditures
paid or incurred after December 31, 2010.''.
(b) Credit Made Part of General Business Credit.--Section 38(b) of
the Internal Revenue Code of 1986 is amended by striking ``and'' at the
end of paragraph (29), by striking the period at the end of paragraph
(30) and inserting ``, plus'', and by adding at the end the following
new paragraph:
``(31) the EPA compliance credit determined under section
45N(a).''.
(c) Conforming Amendments.--
(1) Section 1016(a) of the Internal Revenue Code of 1986 is
amended by striking ``and'' at the end of paragraph (36), by
striking the period at the end of paragraph (37) and inserting
``, and'', and by inserting after paragraph (37) the following
new paragraph:
``(38) to the extent provided in section 45N(e)(1).''.
(2) 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. 45N. Credit for compliance costs for concentrated animal feeding
operations.''.
(d) Effective Date.--The amendments made by this section shall
apply to expenditures incurred after December 31, 2002.
<all>
Introduced in House
Introduced in House
Referred to the House Committee on Ways and Means.
Llama 3.2 · runs locally in your browser
Ask anything about this bill. The AI reads the full text to answer.
Enter to send · Shift+Enter for new line