FAIR Meat Packing Act

To amend the Internal Revenue Code of 1986 to provide incentives for livestock processing facilities. 1. Short title This Act may be cited as the Feed America by Incentivizing Rural Meat Packing Act FAIR Meat Packing Act 2. Credit for livestock processing facilities (a) In general Subpart E of part IV of subchapter A of chapter 1 48D. Livestock processing facilities credit (a) In general For purposes of section 46, the livestock processing facilities credit for any taxable year is an amount equal to 25 percent of the basis of each livestock processing facility property placed in service by the taxpayer during such taxable year. (b) Limitation on credit amount The credit determined under subsection (a) with respect to any taxpayer for any taxable year shall not exceed $250,000. (c) Exclusion of certain large processors No credit shall be allowed under subsection (a) to any taxpayer for any taxable year if the gross receipts (within the meaning of section 448(c) (d) Livestock processing facility property For purposes of this section— (1) In general The term livestock processing facility property (2) Trade or business requirement The term livestock processing facility property (e) Other definitions For purposes of this section— (1) Livestock processing facility The term livestock processing facility (2) Livestock The term livestock (f) Special rules (1) Certain progress expenditure rules made applicable Rules similar to the rules of subsections (c)(4) and (d) of section 46 (as in effect on the day before the date of the enactment of the Revenue Reconciliation Act of 1990) shall apply for purposes of subsection (a). (2) Aggregation rule For purposes of subsections (b) and (c), all members of the same controlled group of corporations (within the meaning of section 267(f)) and all persons under common control (within the meaning of section 52(b) but determined by treating an interest of more than 50 percent as a controlling interest) shall be treated as 1 person and the dollar limitation under subsection (b) shall be allocated in such manner as the Secretary may provide. (3) Election to not have section apply No credit shall be determined under subsection (a) with respect to any taxpayer for any taxable year if such taxpayer make an election under this paragraph (at such time and in such manner as the Secretary may provide) to have such subsection not apply for such taxable year. (g) Termination No credit shall be allowed under subsection (a) with respect to any taxable year beginning after December 31, 2025. . (b) Conforming amendments (1) Section 46 of such Code is amended by striking and , and (7) the livestock processing facilities credit. . (2) Section 49(a)(1)(C) of such Code is amended by striking and (vi) the basis of any livestock processing facility property under section 48D. . (3) Section 50(a)(2)(E) of such Code is amended by striking or 48C(b)(2) 48C(b)(2), or 48D(d)(1) (4) The table of sections for subpart E of part IV of subchapter A of chapter 1 of such Code is amended by inserting after the item relating to section 48C the following new item: Sec. 48D. Livestock processing facilities credit. . (c) Effective date The amendments made by this section shall apply to periods after the date of the enactment of this Act under rules similar to the rules of section 48(m) 3. Refundable credit for startup and organizational expenditures with respect to livestock processing facilities (a) In general Subpart C of part IV of subchapter A of chapter 1 36C. Credit for startup and organizational expenditures of livestock processing facilities (a) In general There shall be allowed as a credit against the tax imposed by this subtitle for any taxable year an amount equal to 90 percent of the sum of— (1) the qualified livestock processing facility start-up expenditures of the taxpayer for such taxable year, (2) the qualified livestock processing facility corporate organizational expenditures of the taxpayer for such taxable year, plus (3) the qualified livestock processing facility partnership organizational expenditures of the taxpayer for such taxable year. (b) Qualified livestock processing facility start-Up expenditures For purposes of this section, the term qualified livestock processing facility start-up expenditures (1) section 195(b)(1)(A)(ii) were applied— (A) by substituting $10,000 $5,000 (B) by substituting $60,000 $50,000 (2) subsection (f) of this section did not apply. (c) Qualified livestock processing facility corporate organizational expenditures For purposes of this section, the term qualified livestock processing facility corporate organizational expenditures section 448(c) (1) section 248(a)(1)(B) were applied— (A) by substituting $10,000 $5,000 (B) by substituting $60,000 $50,000 (2) in the case of any entity with a single owner that is disregarded as an entity separate from its owner, section 248 were applied as if such entity were a corporation, and (3) subsection (f) of this section did not apply. (d) Qualified livestock processing facility partnership organizational expenditures For purposes of this section, the term qualified livestock processing facility partnership organizational expenditures section 448(c) (1) section 709(b)(1)(A)(ii) were applied— (A) by substituting $10,000 $5,000 (B) by substituting $60,000 $50,000 (2) subsection (f) of this section did not apply. (e) Livestock For purposes of this section, the term livestock (f) Denial of double benefit Any deduction or credit allowed under this title (other than this section) with respect to any qualified livestock processing facility start-up expenditures, qualified livestock processing facility corporate organizational expenditures, or qualified livestock processing facility partnership organizational expenditures shall be reduced by the amount of the credit determined under this section. (g) Recapture If any credit is allowed under this section to any taxpayer for any taxable year with respect to any trade or business of processing livestock (including with respect to any entity substantially all of the gross receipts of which are with respect to the trade or business of processing of livestock) and such trade or business ceases to be conducted during the 3-taxable-year period following the taxable in which such credit is so allowed, the tax imposed under this chapter on such taxpayer for the taxable year in which such trade or business ceases shall be increased by the amount of the credit so allowed. (h) Termination No credit shall be allowed under subsection (a) with respect to any taxable year beginning after December 31, 2025. . (b) Conforming amendments (1) Section 6211(b)(4)(A) of such Code is amended by inserting 36C, 36B, (2) Paragraph (2) of section 1324(b) of title 31, United States Code, is amended by inserting 36C, 36B, (3) The table of sections for subpart C of part IV of subchapter A of chapter 1 Sec. 36C. Credit for startup and organizational expenditures of livestock processing facilities. . (c) Effective date The amendments made by this section shall apply to taxable year ending after the date of the enactment of this Act.

Summary: Feed America by Incentivizing Rural Meat Packing Act or the FAIR Meat Packing Act This bill allows an investment tax credit through 2025 for 25% of the basis of each livestock processing facility property placed in service during the taxable year. The amount of the credit may not exceed $250,000 in any taxable year and is not available to taxpayers whose gross receipts exceed $100 million in a taxable year. The bill defines livestock processing facility as a facility that slaughters livestock (i.e., cattle, sheep, goats, bison, swine, and poultry) for processing into meat and meat products and participates in a meat and poultry inspection program, The facility must employ an average of fewer than 500 employees and include property used for the intake or storage of livestock, the disposal or management of livestock waste, or the packaging, handling, warehousing, or storage of meat products. The bill also allows a refundable income tax credit for the startup and organizational expenditures of livestock processing facilities.