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.

Summary: 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.

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.