Agricultural Business Security Tax Credit Act of 2005 - Amends the Internal Revenue Code to allow a retailer of agricultural products and chemicals or a manufacturer, formulator, or distributor of certain pesticides a business tax credit for 30 percent of costs for or related to the protection of such chemicals or pesticides, including employee security training and background checks, installation of security equipment, and computer network safeguards. Sets a $2 million annual limit on such credit and a per facility limitation of $100,000 (reduced by credits received for the five prior taxable years). Terminates such credit after 2010.
[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[S. 2052 Introduced in Senate (IS)]
109th CONGRESS
1st Session
S. 2052
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 SENATE OF THE UNITED STATES
November 18, 2005
Mr. Roberts (for himself, Mr. Nelson of Nebraska, Mr. Isakson, and Mr.
Santorum) introduced the following bill; which was read twice and
referred to the Committee on Finance
_______________________________________________________________________
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. 45N. 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 30 percent
of the qualified security expenditures for the taxable year.
``(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) Qualified Chemical Security Expenditure.--For purposes of
this section, the term `qualified chemical security expenditure' means,
with respect to any eligible agricultural business for any taxable
year, any amount paid or incurred by such business during such taxable
year for--
``(1) employee security training and background checks,
``(2) limitation and prevention of access to controls of
specified agricultural chemicals stored at the facility,
``(3) tagging, locking tank valves, and chemical additives
to prevent the theft of specified agricultural chemicals or to
render such chemicals unfit for illegal use,
``(4) protection of the perimeter of specified agricultural
chemicals,
``(5) installation of security lighting, cameras, recording
equipment, and intrusion detection sensors,
``(6) implementation of measures to increase computer or
computer network security,
``(7) conducting a security vulnerability assessment,
``(8) implementing a site security plan, and
``(9) such other measures for the protection of specified
agricultural chemicals as the Secretary may identify in
regulation.
Amounts described in the preceding sentence shall be taken into account
only to the extent that such amounts are paid or incurred for the
purpose of protecting specified agricultural chemicals.
``(e) Eligible Agricultural Business.--For purposes of this
section, the term `eligible agricultural business' means any person in
the trade or business of--
``(1) selling agricultural products, including specified
agricultural chemicals, at retail predominantly to farmers and
ranchers, or
``(2) manufacturing, formulating, distributing, or aerially
applying specified agricultural chemicals.
``(f) Specified Agricultural Chemical.--For purposes of this
section, the term `specified agricultural chemical' means--
``(1) any fertilizer commonly used in agricultural
operations which is listed under--
``(A) section 302(a)(2) of the Emergency Planning
and Community Right-to-Know Act of 1986,
``(B) section 101 of part 172 of title 49, Code of
Federal Regulations, or
``(C) part 126, 127, or 154 of title 33, Code of
Federal Regulations, and
``(2) 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 crops grown for food, feed, or fiber.
``(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
agricultural chemical and for other purposes, and
``(2) provide for the treatment of related properties as
one facility for purposes of subsection (b).
``(i) Termination.--This section shall not apply to any amount paid
or incurred after December 31, 2010.''.
(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 (25), by striking the period at the end of paragraph (26) and
inserting ``, plus'', and by adding at the end the following new
paragraph:
``(27) in the case of an eligible agricultural business (as
defined in section 45J(e)), the agricultural chemicals security
credit determined under section 45N(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 45N for the taxable year which is equal to the amount of the
credit determined for such taxable year under section 45N(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. 45N. Agricultural chemicals security credit''.
(e) Effective Date.--The amendments made by this section shall
apply to amounts paid or incurred after December 31, 2005.
<all>
Introduced in Senate
Read twice and referred to the Committee on Finance.
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