I 
110TH CONGRESS 
1ST SESSION H. R. 1814 
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 HOUSE OF REPRESENTATIVES 
MARCH 29, 2007 
Mr. LEWIS of Kentucky (for himself, Mr. PAUL, Mr. DAVIS of Kentucky, Mr. 
ROGERS of Kentucky, Mr. GINGREY, Mr. SKELTON, Mrs. MCMORRIS 
RODGERS, Mr. MCCAUL of Texas, Mr. WHITFIELD, Mr. REHBERG, Mrs. 
CUBIN, Mr. MARSHALL, Mr. LATHAM, Mr. MCINTYRE, and Mr. SCOTT 
of Georgia) introduced the following bill; which was referred to the Com-
mittee on Ways and Means 
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. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Agricultural Business 
Security Tax Credit Act of 2007’’. 
SEC. 2. AGRICULTURAL CHEMICALS SECURITY CREDIT. 
(a) IN GENERAL.—Subpart D of part IV of sub-
chapter A of chapter 1 of the Internal Revenue Code of 
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1986 (relating to business related credits) is amended by 
adding at the end the following new section: 
‘‘SEC. 45N. AGRICULTURAL CHEMICALS SECURITY CREDIT. 
‘‘(a) IN GENERAL.—For purposes of section 38, in 
the case of an eligible agricultural business, the agricul-
tural chemicals security credit determined under this sec-
tion for the taxable year is 30 percent of the qualified se-
curity expenditures for the taxable year. 
‘‘(b) FACILITY LIMITATION.—The amount of the 
credit determined under subsection (a) with respect to any 
facility for any taxable year shall not exceed— 
‘‘(1) $100,000, reduced by, 
‘‘(2) the aggregate amount of credits deter-
mined under subsection (a) with respect to such fa-
cility for the 5 prior taxable years. 
‘‘(c) ANNUAL LIMITATION.—The amount of the cred-
it determined under subsection (a) with respect to any tax-
payer for any taxable year shall not exceed $2,000,000. 
‘‘(d) QUALIFIED CHEMICAL SECURITY EXPENDI-
TURE.—For purposes of this section, the term ‘qualified 
chemical security expenditure’ means, with respect to any 
eligible agricultural business for any taxable year, any 
amount paid or incurred by such business during such tax-
able year for— 
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‘‘(1) employee security training and background 
checks, 
‘‘(2) limitation and prevention of access to con-
trols of specified agricultural chemicals stored at the 
facility, 
‘‘(3) tagging, locking tank valves, and chemical 
additives to prevent the theft of specified agricul-
tural chemicals or to render such chemicals unfit for 
illegal use, 
‘‘(4) protection of the perimeter of specified ag-
ricultural chemicals, 
‘‘(5) installation of security lighting, cameras, 
recording equipment, and intrusion detection sen-
sors, 
‘‘(6) implementation of measures to increase 
computer or computer network security, 
‘‘(7) conducting a security vulnerability assess-
ment, 
‘‘(8) implementing a site security plan, and 
‘‘(9) such other measures for the protection of 
specified agricultural chemicals as the Secretary may 
identify in regulation. 
Amounts described in the preceding sentence shall be 
taken into account only to the extent that such amounts 
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are paid or incurred for the purpose of protecting specified 
agricultural chemicals. 
‘‘(e) ELIGIBLE AGRICULTURAL BUSINESS.—For pur-
poses of this section, the term ‘eligible agricultural busi-
ness’ means any person in the trade or business of— 
‘‘(1) selling agricultural products, including 
specified agricultural chemicals, at retail predomi-
nantly to farmers and ranchers, or 
‘‘(2) manufacturing, formulating, distributing, 
transporting, or aerially applying specified agricul-
tural chemicals. 
‘‘(f) SPECIFIED AGRICULTURAL CHEMICAL.—For 
purposes of this section, the term ‘specified agricultural 
chemical’ means— 
‘‘(1) any fertilizer commonly used in agricul-
tural operations which is listed under— 
‘‘(A) section 302(a)(2) of the Emergency 
Planning and Community Right-to-Know Act of 
1986, 
‘‘(B) section 101 of part 172 of title 49, 
Code of Federal Regulations, or 
‘‘(C) part 126, 127, or 154 of title 33, 
Code of Federal Regulations, and 
‘‘(2) any pesticide (as defined in section 2(u) of 
the Federal Insecticide, Fungicide, and Rodenticide 
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Act), including all active and inert ingredients there-
of, which is customarily used on crops grown for 
food, feed, or fiber. 
‘‘(g) CONTROLLED GROUPS.—Rules similar to the 
rules of paragraphs (1) and (2) of section 41(f) shall apply 
for purposes of this section. 
‘‘(h) REGULATIONS.—The Secretary may prescribe 
such regulations as may be necessary or appropriate to 
carry out the purposes of this section, including regula-
tions which— 
‘‘(1) provide for the proper treatment of 
amounts which are paid or incurred for purpose of 
protecting any specified agricultural chemical and 
for other purposes, and 
‘‘(2) provide for the treatment of related prop-
erties as one facility for purposes of subsection (b). 
‘‘(i) TERMINATION.—This section shall not apply to 
any amount paid or incurred after December 31, 2010.’’. 
(b) CREDIT ALLOWED AS PART OF GENERAL BUSI-
NESS CREDIT.—Section 38(b) of such Code is amended 
by striking ‘‘plus’’ at the end of paragraph (25), by strik-
ing the period at the end of paragraph (26) and inserting 
‘‘, plus’’, and by adding at the end the following new para-
graph: 
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‘‘(27) in the case of an eligible agricultural 
business (as defined in section 45J(e)), the agricul-
tural chemicals security credit determined under sec-
tion 45N(a).’’. 
(c) DENIAL OF DOUBLE BENEFIT.—Section 280C of 
such Code is amended by adding at the end the following 
new subsection: 
‘‘(e) CREDIT
FOR SECURITY
OF AGRICULTURAL 
CHEMICALS.—No deduction shall be allowed for that por-
tion of the expenses (otherwise allowable as a deduction) 
taken into account in determining the credit under section 
45N for the taxable year which is equal to the amount 
of the credit determined for such taxable year under sec-
tion 45N(a).’’. 
(d) CLERICAL AMENDMENT.—The table of sections 
for subpart D of part IV of subchapter A of chapter 1 
of such Code is amended by adding at the end the fol-
lowing new item: 
‘‘Sec. 45N. Agricultural chemicals security credit.’’. 
(e) EFFECTIVE DATE.—The amendments made by 
this section shall apply to amounts paid or incurred after 
December 31, 2005. 
Æ 
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