I 

110TH CONGRESS 

1ST SESSION H. R. 1814 

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 HOUSE OF REPRESENTATIVES 

MARCH 29, 2007 

Mr. LEWIS of Kentucky (for himself, Mr. PAUL, Mr. DAVIS of Kentucky, Mr. 

ROGERS of Kentucky, Mr. GINGREY, Mr. SKELTON, Mrs. MCMORRIS

RODGERS, Mr. MCCAUL of Texas, Mr. WHITFIELD, Mr. REHBERG, Mrs. 

CUBIN, Mr. MARSHALL, Mr. LATHAM, Mr. MCINTYRE, and Mr. SCOTT

of Georgia) 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 agriculture-related businesses for the 

cost of protecting certain chemicals. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Agricultural Business 

5 Security Tax Credit Act of 2007’’. 

6 SEC. 2. AGRICULTURAL CHEMICALS SECURITY CREDIT. 

7 (a) IN GENERAL.—Subpart D of part IV of sub8 chapter A of chapter 1 of the Internal Revenue Code of 


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1 1986 (relating to business related credits) is amended by 

2 adding at the end the following new section: 

3 ‘‘SEC. 45N. AGRICULTURAL CHEMICALS SECURITY CREDIT. 

4 ‘‘(a) IN GENERAL.—For purposes of section 38, in 

5 the case of an eligible agricultural business, the agricul6 tural chemicals security credit determined under this sec7 tion for the taxable year is 30 percent of the qualified se8 curity expenditures for the taxable year. 

9 ‘‘(b) FACILITY LIMITATION.—The amount of the 

10 credit determined under subsection (a) with respect to any 

11 facility for any taxable year shall not exceed— 

12 ‘‘(1) $100,000, reduced by, 

13 ‘‘(2) the aggregate amount of credits deter14 mined under subsection (a) with respect to such fa15 cility for the 5 prior taxable years. 

16 ‘‘(c) ANNUAL LIMITATION.—The amount of the cred17 it determined under subsection (a) with respect to any tax18 payer for any taxable year shall not exceed $2,000,000. 

19 ‘‘(d) QUALIFIED CHEMICAL SECURITY EXPENDI20 TURE.—For purposes of this section, the term ‘qualified 

21 chemical security expenditure’ means, with respect to any 

22 eligible agricultural business for any taxable year, any 

23 amount paid or incurred by such business during such tax24 able year for— 


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1 ‘‘(1) employee security training and background 

2 checks, 

3 ‘‘(2) limitation and prevention of access to con4 trols of specified agricultural chemicals stored at the 

5 facility, 

6 ‘‘(3) tagging, locking tank valves, and chemical 

7 additives to prevent the theft of specified agricul8 tural chemicals or to render such chemicals unfit for 

9 illegal use, 

10 ‘‘(4) protection of the perimeter of specified ag11 ricultural chemicals, 

12 ‘‘(5) installation of security lighting, cameras, 

13 recording equipment, and intrusion detection sen14 sors, 

15 ‘‘(6) implementation of measures to increase 

16 computer or computer network security, 

17 ‘‘(7) conducting a security vulnerability assess18 ment, 

19 ‘‘(8) implementing a site security plan, and 

20 ‘‘(9) such other measures for the protection of 

21 specified agricultural chemicals as the Secretary may 

22 identify in regulation. 

23 Amounts described in the preceding sentence shall be 

24 taken into account only to the extent that such amounts 


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1 are paid or incurred for the purpose of protecting specified 

2 agricultural chemicals. 

3 ‘‘(e) ELIGIBLE AGRICULTURAL BUSINESS.—For pur4 poses of this section, the term ‘eligible agricultural busi5 ness’ means any person in the trade or business of— 

6 ‘‘(1) selling agricultural products, including 

7 specified agricultural chemicals, at retail predomi8 nantly to farmers and ranchers, or 

9 ‘‘(2) manufacturing, formulating, distributing, 

10 transporting, or aerially applying specified agricul11 tural chemicals. 

12 ‘‘(f) SPECIFIED AGRICULTURAL CHEMICAL.—For 

13 purposes of this section, the term ‘specified agricultural 

14 chemical’ means— 

15 ‘‘(1) any fertilizer commonly used in agricul16 tural operations which is listed under— 

17 ‘‘(A) section 302(a)(2) of the Emergency 

18 Planning and Community Right-to-Know Act of 

19 1986, 

20 ‘‘(B) section 101 of part 172 of title 49, 

21 Code of Federal Regulations, or 

22 ‘‘(C) part 126, 127, or 154 of title 33, 

23 Code of Federal Regulations, and 

24 ‘‘(2) any pesticide (as defined in section 2(u) of 

25 the Federal Insecticide, Fungicide, and Rodenticide 


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1 Act), including all active and inert ingredients there2 of, which is customarily used on crops grown for 

3 food, feed, or fiber. 

4 ‘‘(g) CONTROLLED GROUPS.—Rules similar to the 

5 rules of paragraphs (1) and (2) of section 41(f) shall apply 

6 for purposes of this section. 

7 ‘‘(h) REGULATIONS.—The Secretary may prescribe 

8 such regulations as may be necessary or appropriate to 

9 carry out the purposes of this section, including regula10 tions which— 

11 ‘‘(1) provide for the proper treatment of 

12 amounts which are paid or incurred for purpose of 

13 protecting any specified agricultural chemical and 

14 for other purposes, and 

15 ‘‘(2) provide for the treatment of related prop16 erties as one facility for purposes of subsection (b). 

17 ‘‘(i) TERMINATION.—This section shall not apply to 

18 any amount paid or incurred after December 31, 2010.’’. 

19 (b) CREDIT ALLOWED AS PART OF GENERAL BUSI20 NESS CREDIT.—Section 38(b) of such Code is amended 

21 by striking ‘‘plus’’ at the end of paragraph (25), by strik22 ing the period at the end of paragraph (26) and inserting 

23 ‘‘, plus’’, and by adding at the end the following new para24 graph: 


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1 ‘‘(27) in the case of an eligible agricultural 

2 business (as defined in section 45J(e)), the agricul3 tural chemicals security credit determined under sec4 tion 45N(a).’’. 

5 (c) DENIAL OF DOUBLE BENEFIT.—Section 280C of 

6 such Code is amended by adding at the end the following 

7 new subsection: 

8 ‘‘(e) CREDIT FOR SECURITY OF AGRICULTURAL

9 CHEMICALS.—No deduction shall be allowed for that por10 tion of the expenses (otherwise allowable as a deduction) 

11 taken into account in determining the credit under section 

12 45N for the taxable year which is equal to the amount 

13 of the credit determined for such taxable year under sec14 tion 45N(a).’’. 

15 (d) CLERICAL AMENDMENT.—The table of sections 

16 for subpart D of part IV of subchapter A of chapter 1 

17 of such Code is amended by adding at the end the fol18 lowing new item: 

‘‘Sec. 45N. Agricultural chemicals security credit.’’. 

19 (e) EFFECTIVE DATE.—The amendments made by 

20 this section shall apply to amounts paid or incurred after 

21 December 31, 2005. 

Æ 


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