II 

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. 

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 2005’’. 

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 or aerially applying specified agricultural chemicals. 

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

12 purposes of this section, the term ‘specified agricultural 

13 chemical’ means— 

14 ‘‘(1) any fertilizer commonly used in agricul15 tural operations which is listed under— 

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

17 Planning and Community Right-to-Know Act of 

18 1986, 

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

20 Code of Federal Regulations, or 

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

22 Code of Federal Regulations, and 

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

24 the Federal Insecticide, Fungicide, and Rodenticide 

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

2 food, feed, or fiber. 

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

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

5 for purposes of this section. 

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

7 such regulations as may be necessary or appropriate to 

8 carry out the purposes of this section, including regula9 tions which— 

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

11 amounts which are paid or incurred for purpose of 

12 protecting any specified agricultural chemical and 

13 for other purposes, and 

14 ‘‘(2) provide for the treatment of related prop15 erties as one facility for purposes of subsection (b). 

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

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

18 (b) CREDIT ALLOWED AS PART OF GENERAL BUSI19 NESS CREDIT.—Section 38(b) of such Code is amended 

20 by striking ‘‘plus’’ at the end of paragraph (25), by strik21 ing the period at the end of paragraph (26) and inserting 

22 ‘‘, plus’’, and by adding at the end the following new para23 graph: 

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

25 business (as defined in section 45J(e)), the agricul-
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1 tural chemicals security credit determined under sec2 tion 45N(a).’’. 

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

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

5 new subsection: 

6 ‘‘(e) CREDIT FOR SECURITY OF AGRICULTURAL

7 CHEMICALS.—No deduction shall be allowed for that por8 tion of the expenses (otherwise allowable as a deduction) 

9 taken into account in determining the credit under section 

10 45N for the taxable year which is equal to the amount 

11 of the credit determined for such taxable year under sec12 tion 45N(a).’’. 

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

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

15 of such Code is amended by adding at the end the fol16 lowing new item: 

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

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

18 this section shall apply to amounts paid or incurred after 

19 December 31, 2005. 

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