I 

112TH CONGRESS 

1ST SESSION H. R. 317 

To amend the Internal Revenue Code of 1986 to allow a credit against 

tax for certain fruit and vegetable farmers. 

IN THE HOUSE OF REPRESENTATIVES 

JANUARY 19, 2011 

Mr. BACA 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 allow a 

credit against tax for certain fruit and vegetable farmers. 

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 ‘‘Fresh Fruit and Vege5 table Grower Tax Incentive Act of 2011’’. 

6 SEC. 2. FRUIT AND VEGETABLE SMALL FARM 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 is amended by adding at the end the following new 

10 section: 


jbell on DSKDVH8Z91PROD with BILLS
2 

•HR 317 IH

1 ‘‘SEC. 45S. FRUIT AND VEGETABLE SMALL FARM CREDIT. 

2 ‘‘(a) ALLOWANCE OF CREDIT.—For purposes of sec3 tion 38, in the case of an eligible taxpayer, the fruit and 

4 vegetable small farm credit determined under this section 

5 for such taxable year is an amount equal to the lesser of— 

6 ‘‘(1) $10,000, or 

7 ‘‘(2) the taxable income of the taxpayer for the 

8 taxable year attributable to the trade or business of 

9 fruit and vegetable farming. 

10 ‘‘(b) ELIGIBLE TAXPAYER.—For purposes of this 

11 section— 

12 ‘‘(1) IN GENERAL.—The term ‘eligible taxpayer’ 

13 means any taxpayer— 

14 ‘‘(A) who is engaged in the trade or busi15 ness of fruit and vegetable farming, 

16 ‘‘(B) with respect to whom at least 75 per17 cent of taxable income attributable to the trade 

18 or business of farming for the preceding taxable 

19 year was attributable to fruit and vegetable 

20 farming, 

21 ‘‘(C) whose gross receipts attributable to 

22 fruit and vegetable farming for the preceding 

23 taxable year are not more than $500,000, and 

24 ‘‘(D) who is a farm-related taxpayer. 

25 ‘‘(2) FRUIT AND VEGETABLE FARMING.—The 

26 term ‘fruit and vegetable farming’ means the farmVerDate Mar 15 2010 02:59 Jan 20, 2011 Jkt 099200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\H317.IH H317

jbell on DSKDVH8Z91PROD with BILLS
3 

•HR 317 IH

1 ing and sale of fruits, vegetables, or both, in fresh 

2 form generally considered as perishable, but does not 

3 include any grains or any perishable fruits and vege4 tables which have been manufactured into articles of 

5 food of a different kind or character. 

6 ‘‘(3) FARM-RELATED TAXPAYER.—The term 

7 ‘farm-related taxpayer’ means— 

8 ‘‘(A) any farm-related taxpayer (as defined 

9 in section 464(f)(3)(B)), or 

10 ‘‘(B) any corporation, partnership, or other 

11 entity, substantially all of which is owned by 

12 one or more farm-related taxpayers. 

13 ‘‘(c) SPECIAL RULES.—For purposes of this sec14 tion— 

15 ‘‘(1) AGGREGATION RULES.—All persons which 

16 are treated as a single employer under subsections 

17 (a) and (b) of section 52 shall be treated as a single 

18 taxpayer. 

19 ‘‘(2) ESTATES AND TRUSTS.—Under regula20 tions prescribed by the Secretary, rules similar to 

21 the rules of subsection (d) of section 52 shall apply. 

22 ‘‘(3) TAX EXEMPT ORGANIZATIONS.—No credit 

23 shall be allowed under section 38 for any fruit and 

24 vegetable small farm credit determined under this 


jbell on DSKDVH8Z91PROD with BILLS
4 

•HR 317 IH

1 subpart to any organization which is exempt from 

2 tax under this chapter. 

3 ‘‘(4) ALLOCATION IN THE CASE OF PARTNER4 SHIPS.—In the case of partnerships, the credit shall 

5 be allocated among partners under regulations pre6 scribed by the Secretary.’’. 

7 (b) CLERICAL AMENDMENT.—The table of sections 

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

9 of such Code is amended by adding at the end the fol10 lowing new item: 

‘‘Sec. 45S. Fruit and vegetable small farm credit.’’. 

11 (c) CONFORMING AMENDMENT.—Subsection (b) of 

12 section 38 of such Code is amended by striking ‘‘plus’’ 

13 at the end of paragraph (35), by striking the period at 

14 the end of paragraph (36) and inserting ‘‘, plus’’, and by 

15 adding at the end the following new paragraph: 

16 ‘‘(37) the fruit and vegetable small farm credit 

17 determined under section 45S(a).’’. 

18 (d) EFFECTIVE DATE.—The amendments made by 

19 this section shall apply to taxable years beginning after 

20 the date of the enactment of this Act. 

Æ 


jbell on DSKDVH8Z91PROD with BILLS