II 

108TH CONGRESS 

2D SESSION S. 2872 

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 

SEPTEMBER 30, 2004 

Mr. BUNNING (for himself and Mr. NELSON of Nebraska) 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 ‘‘The Agricultural Busi5 ness Security Tax Credit Act of 2004’’. 

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 

9 1986 (relating to business related credits) is amended by 

10 adding at the end the following new section: 
2 

•S 2872 IS

1 ‘‘SEC. 45G. AGRICULTURAL CHEMICALS SECURITY CREDIT. 

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

3 the case of an eligible agricultural business, the agricul4 tural chemicals security credit determined under this sec5 tion for the taxable year is 50 percent of the aggregate 

6 amount paid or incurred by the eligible agricultural busi7 ness for the purpose of protecting any specified hazardous 

8 chemical or any food-use pesticide from unauthorized ac9 cess. 

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

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

12 facility for any taxable year shall not exceed— 

13 ‘‘(1) $50,000, reduced by 

14 ‘‘(2) the aggregate amount of credits deter15 mined under subsection (a) with respect to such fa16 cility for the 5 prior taxable years. 

17 ‘‘(c) ANNUAL LIMITATION.—The amount of the cred18 it determined under subsection (a) with respect to any tax19 payer for any taxable year shall not exceed $2,000,000. 

20 ‘‘(d) ELIGIBLE AGRICULTURAL BUSINESS.—For pur21 poses of this section, the term ‘eligible agricultural busi22 ness’ means any person in the trade or business of— 

23 ‘‘(1) being a retailer of agricultural products, or 

24 ‘‘(2) manufacturing, formulating, or distrib25 uting food-use pesticides. 
3 

•S 2872 IS

1 ‘‘(e) SPECIFIED HAZARDOUS CHEMICALS.—For pur2 poses of this section, the term ‘specified hazardous chem3 ical’ means any extremely hazardous substance listed 

4 under section 302(a)(2) of the Emergency Planning and 

5 Community Right-to-Know Act of 1986, and any haz6 ardous material listed under section 101 of part 172 of 

7 title 49, Code of Federal Regulations, which is held for 

8 sale in the trade or business of being a retailer of agricul9 tural products. 

10 ‘‘(f) FOOD-USE PESTICIDE.—For purposes of this 

11 section, the term ‘food-use pesticide’ means any pesticide 

12 (as defined in section 2(u) of the Federal Insecticide, Fun13 gicide, and Rodenticide Act), including all active and inert 

14 ingredients thereof, which is customarily used on food, 

15 feed, or crops. 

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

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

18 for purposes of this section. 

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

20 such regulations as may be necessary or appropriate to 

21 carry out the purposes of this section, including regula22 tions which— 

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

24 amounts which are paid or incurred for the purpose 
4 

•S 2872 IS

1 of protecting any specified hazardous chemical or 

2 any food-use pesticide and for other purposes, and 

3 ‘‘(2) provide for the treatment of related prop4 erties as one facility for purposes of subsection (b).’’. 

5 (b) CREDIT ALLOWED AS PART OF GENERAL BUSI6 NESS CREDIT.—Section 38(b) of such Code is amended 

7 by striking ‘‘plus’’ at the end of paragraph (14), by strik8 ing the period at the end of paragraph (15) and inserting 

9 ‘‘, plus’’, and by adding at the end the following new para10 graph: 

11 ‘‘(16) in the case of an eligible agricultural 

12 business (as defined in section 45G(d)), the agricul13 tural chemicals security credit determined under sec14 tion 45G(a).’’. 

15 (c) NO CARRYBACKS.—Subsection (d) of section 39 

16 of such Code (relating to carryback and carryforward of 

17 unused credits) is amended by adding at the end the fol18 lowing: 

19 ‘‘(11) NO CARRYBACK OF SECTION 46G CREDIT

20 BEFORE EFFECTIVE DATE.—No portion of the un21 used business credit for any taxable year which is 

22 attributable to the agricultural chemicals security 

23 credit determined under section 45G may be carried 

24 back to a taxable year beginning before the date of 

25 the enactment of this paragraph.’’. 
5 

•S 2872 IS

1 (d) DENIAL OF DOUBLE BENEFIT.—Section 280C of 

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

3 new subsection: 

4 ‘‘(d) CREDIT FOR SECURITY OF AGRICULTURAL

5 CHEMICALS.—No deduction shall be allowed for that por6 tion of the expenses (otherwise allowable as a deduction) 

7 taken into account in determining the credit under section 

8 45G for the taxable year which is equal to the amount 

9 of the credit determined for such taxable year under sec10 tion 45G(a).’’. 

11 (e) CLERICAL AMENDMENT.—The table of sections 

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

13 of such Code is amended by adding at the end the fol14 lowing new item: 

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

15 (f) EFFECTIVE DATE.—The amendments made by 

16 this section shall apply to amounts paid or incurred after 

17 the date of the enactment of this Act. 

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