II 

117TH CONGRESS 

1ST SESSION S. 2558 

To amend the Internal Revenue Code of 1986 to provide incentives for 

livestock processing facilities. 

IN THE SENATE OF THE UNITED STATES 

JULY 29, 2021 

Mr. MARSHALL (for himself and Mr. ROUNDS) 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 

incentives for livestock processing facilities. 

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 ‘‘Feed America by 

5 Incentivizing Rural Meat Packing Act’’ or as the ‘‘FAIR 

6 Meat Packing Act’’. 

7 SEC. 2. CREDIT FOR LIVESTOCK PROCESSING FACILITIES. 

8 (a) IN GENERAL.—Subpart E of part IV of sub9 chapter A of chapter 1 of the Internal Revenue Code of 


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1 1986 is amended by inserting after section 48C the fol2 lowing new section: 

3 ‘‘SEC. 48D. LIVESTOCK PROCESSING FACILITIES CREDIT. 

4 ‘‘(a) IN GENERAL.—For purposes of section 46, the 

5 livestock processing facilities credit for any taxable year 

6 is an amount equal to 25 percent of the basis of each live7 stock processing facility property placed in service by the 

8 taxpayer during such taxable year. 

9 ‘‘(b) LIMITATION ON CREDIT AMOUNT.—The credit 

10 determined under subsection (a) with respect to any tax11 payer for any taxable year shall not exceed $250,000. 

12 ‘‘(c) EXCLUSION OF CERTAIN LARGE PROC13 ESSORS.—No credit shall be allowed under subsection (a) 

14 to any taxpayer for any taxable year if the gross receipts 

15 (within the meaning of section 448(c) of the Internal Rev16 enue Code of 1986) of such taxpayer for such taxable year 

17 exceed $100,000,000. 

18 ‘‘(d) LIVESTOCK PROCESSING FACILITY PROP19 ERTY.—For purposes of this section— 

20 ‘‘(1) IN GENERAL.—The term ‘livestock proc21 essing facility property’ means property with respect 

22 to which depreciation (or amortization in lieu of de23 preciation) is allowable and which is part of a live24 stock processing facility. 


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1 ‘‘(2) TRADE OR BUSINESS REQUIREMENT.—The 

2 term ‘livestock processing facility property’ shall not 

3 include any property unless such property is used in 

4 the taxpayer’s trade or business of processing live5 stock. 

6 ‘‘(e) OTHER DEFINITIONS.—For purposes of this 

7 section— 

8 ‘‘(1) LIVESTOCK PROCESSING FACILITY.—The 

9 term ‘livestock processing facility’ means a facility 

10 which slaughters livestock for processing into meat 

11 and meat products, which participates in a meat and 

12 poultry inspection program conducted by the De13 partment of Agriculture or the State in which such 

14 facility is located, and at which an average of fewer 

15 than 500 employees are employed on business days 

16 during the taxable year. Such term shall include any 

17 property used for the intake or storage of livestock, 

18 the disposal or management of livestock waste, or 

19 the packaging, handling, warehousing, or storage of 

20 meat products, if such property is located on the 

21 same site as such facility. 

22 ‘‘(2) LIVESTOCK.—The term ‘livestock’ means 

23 cattle, sheep, goats, bison, swine, and poultry. 

24 ‘‘(f) SPECIAL RULES.— 


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1 ‘‘(1) CERTAIN PROGRESS EXPENDITURE RULES

2 MADE APPLICABLE.—Rules similar to the rules of 

3 subsections (c)(4) and (d) of section 46 (as in effect 

4 on the day before the date of the enactment of the 

5 Revenue Reconciliation Act of 1990) shall apply for 

6 purposes of subsection (a). 

7 ‘‘(2) AGGREGATION RULE.—For purposes of 

8 subsections (b) and (c), all members of the same 

9 controlled group of corporations (within the meaning 

10 of section 267(f)) and all persons under common 

11 control (within the meaning of section 52(b) but de12 termined by treating an interest of more than 50 

13 percent as a controlling interest) shall be treated as 

14 1 person and the dollar limitation under subsection 

15 (b) shall be allocated in such manner as the Sec16 retary may provide. 

17 ‘‘(3) ELECTION TO NOT HAVE SECTION

18 APPLY.—No credit shall be determined under sub19 section (a) with respect to any taxpayer for any tax20 able year if such taxpayer make an election under 

21 this paragraph (at such time and in such manner as 

22 the Secretary may provide) to have such subsection 

23 not apply for such taxable year. 


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1 ‘‘(g) TERMINATION.—No credit shall be allowed 

2 under subsection (a) with respect to any taxable year be3 ginning after December 31, 2026.’’. 

4 (b) CONFORMING AMENDMENTS.— 

5 (1) Section 46 of such Code is amended by 

6 striking ‘‘and’’ at the end of paragraph (5), by strik7 ing the period at the end of paragraph (6) and in8 serting ‘‘, and’’, and by adding at the end the fol9 lowing new paragraph: 

10 ‘‘(7) the livestock processing facilities credit.’’. 

11 (2) Section 49(a)(1)(C) of such Code is amend12 ed by striking ‘‘and’’ at the end of clause (iv), by 

13 striking the period at the end of clause (v) and in14 serting a comma, and by adding at the end the fol15 lowing new clause: 

16 ‘‘(vi) the basis of any livestock proc17 essing facility property under section 

18 48D.’’. 

19 (3) Section 50(a)(2)(E) of such Code is amend20 ed by striking ‘‘or 48C(b)(2)’’ and inserting 

21 ‘‘48C(b)(2), or 48D(d)(1)’’. 

22 (4) The table of sections for subpart E of part 

23 IV of subchapter A of chapter 1 of such Code is 

24 amended by inserting after the item relating to sec25 tion 48C the following new item: 

‘‘Sec. 48D. Livestock processing facilities credit.’’. 


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1 (c) EFFECTIVE DATE.—The amendments made by 

2 this section shall apply to periods after the date of the 

3 enactment of this Act under rules similar to the rules of 

4 section 48(m) of the Internal Revenue Code of 1986 (as 

5 in effect on the day before the date of the enactment of 

6 the Revenue Reconciliation Act of 1990). 

7 SEC. 3. REFUNDABLE CREDIT FOR STARTUP AND ORGANI8 ZATIONAL EXPENDITURES WITH RESPECT TO 

9 LIVESTOCK PROCESSING FACILITIES. 

10 (a) IN GENERAL.—Subpart C of part IV of sub11 chapter A of chapter 1 of the Internal Revenue Code of 

12 1986 is amended by inserting after section 36B the fol13 lowing new section: 

14 ‘‘SEC. 36C. CREDIT FOR STARTUP AND ORGANIZATIONAL 

15 EXPENDITURES OF LIVESTOCK PROCESSING 

16 FACILITIES. 

17 ‘‘(a) IN GENERAL.—There shall be allowed as a cred18 it against the tax imposed by this subtitle for any taxable 

19 year an amount equal to 90 percent of the sum of— 

20 ‘‘(1) the qualified livestock processing facility 

21 start-up expenditures of the taxpayer for such tax22 able year, 

23 ‘‘(2) the qualified livestock processing facility 

24 corporate organizational expenditures of the tax25 payer for such taxable year, plus 


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1 ‘‘(3) the qualified livestock processing facility 

2 partnership organizational expenditures of the tax3 payer for such taxable year. 

4 ‘‘(b) QUALIFIED LIVESTOCK PROCESSING FACILITY

5 START-UP EXPENDITURES.—For purposes of this section, 

6 the term ‘qualified livestock processing facility start-up ex7 penditures’ means, with respect to any taxpayer for any 

8 taxable year, the amount which would be allowed as a de9 duction under section 195 to such taxpayer for such tax10 able year with respect to any trade or business which 

11 slaughters livestock into meat or meat products if— 

12 ‘‘(1) section 195(b)(1)(A)(ii) were applied— 

13 ‘‘(A) by substituting ‘$10,000’ for 

14 ‘$5,000’, and 

15 ‘‘(B) by substituting ‘$60,000’ for 

16 ‘$50,000’, and 

17 ‘‘(2) subsection (f) of this section did not apply. 

18 ‘‘(c) QUALIFIED LIVESTOCK PROCESSING FACILITY

19 CORPORATE ORGANIZATIONAL EXPENDITURES.—For 

20 purposes of this section, the term ‘qualified livestock proc21 essing facility corporate organizational expenditures’ 

22 means, with respect to any taxable year of any corporation 

23 substantially all of the gross receipts (within the meaning 

24 of section 448(c) of the Internal Revenue Code of 1986) 

25 of which are reasonably expected to be derived from a 


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1 trade or business which slaughters livestock into meat or 

2 meat products, the amount which would be allowed as a 

3 deduction under section 248 to such corporation for such 

4 taxable year if— 

5 ‘‘(1) section 248(a)(1)(B) were applied— 

6 ‘‘(A) by substituting ‘$10,000’ for 

7 ‘$5,000’, and 

8 ‘‘(B) by substituting ‘$60,000’ for 

9 ‘$50,000’, 

10 ‘‘(2) in the case of any entity with a single 

11 owner that is disregarded as an entity separate from 

12 its owner, section 248 were applied as if such entity 

13 were a corporation, and 

14 ‘‘(3) subsection (f) of this section did not apply. 

15 ‘‘(d) QUALIFIED LIVESTOCK PROCESSING FACILITY

16 PARTNERSHIP ORGANIZATIONAL EXPENDITURES.—For 

17 purposes of this section, the term ‘qualified livestock proc18 essing facility partnership organizational expenditures’ 

19 means, with respect to any taxable year of any partnership 

20 substantially all of the gross receipts (within the meaning 

21 of section 448(c) of the Internal Revenue Code of 1986) 

22 of which are reasonably expected to be derived from a 

23 trade or business which slaughters livestock into meat or 

24 meat products, the amount which would be allowed as a 


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1 deduction under section 709 with respect to such partner2 ship for such taxable year if— 

3 ‘‘(1) section 709(b)(1)(A)(ii) were applied— 

4 ‘‘(A) by substituting ‘$10,000’ for 

5 ‘$5,000’, and 

6 ‘‘(B) by substituting ‘$60,000’ for 

7 ‘$50,000’, and 

8 ‘‘(2) subsection (f) of this section did not apply. 

9 ‘‘(e) LIVESTOCK.—For purposes of this section, the 

10 term ‘livestock’ means cattle, elk, reindeer, bison, deer, 

11 sheep, goats, swine, and poultry. 

12 ‘‘(f) DENIAL OF DOUBLE BENEFIT.—Any deduction 

13 or credit allowed under this title (other than this section) 

14 with respect to any qualified livestock processing facility 

15 start-up expenditures, qualified livestock processing facil16 ity corporate organizational expenditures, or qualified live17 stock processing facility partnership organizational ex18 penditures shall be reduced by the amount of the credit 

19 determined under this section. 

20 ‘‘(g) RECAPTURE.—If any credit is allowed under this 

21 section to any taxpayer for any taxable year with respect 

22 to any trade or business of processing livestock (including 

23 with respect to any entity substantially all of the gross 

24 receipts of which are with respect to the trade or business 

25 of processing of livestock) and such trade or business 


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1 ceases to be conducted during the 3-taxable-year period 

2 following the taxable in which such credit is so allowed, 

3 the tax imposed under this chapter on such taxpayer for 

4 the taxable year in which such trade or business ceases 

5 shall be increased by the amount of the credit so allowed. 

6 ‘‘(h) TERMINATION.—No credit shall be allowed 

7 under subsection (a) with respect to any taxable year be8 ginning after December 31, 2026.’’. 

9 (b) CONFORMING AMENDMENTS.— 

10 (1) Section 6211(b)(4)(A) of such Code is 

11 amended by inserting ‘‘36C,’’ after ‘‘36B,’’. 

12 (2) Paragraph (2) of section 1324(b) of title 

13 31, United States Code, is amended by inserting 

14 ‘‘36C,’’ after ‘‘36B,’’. 

15 (3) The table of sections for subpart C of part 

16 IV of subchapter A of chapter 1 of the Internal Rev17 enue Code of 1986 is amended by inserting after the 

18 item relating to section 36B the following new item: 

‘‘Sec. 36C. Credit for startup and organizational expenditures of livestock processing facilities.’’. 

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

20 this section shall apply to taxable year ending after the 

21 date of the enactment of this Act. 

Æ 


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