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. 
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 ‘‘Fresh Fruit and Vege-
table Grower Tax Incentive Act of 2011’’. 
SEC. 2. FRUIT AND VEGETABLE SMALL FARM CREDIT. 
(a) IN GENERAL.—Subpart D of part IV of sub-
chapter A of chapter 1 of the Internal Revenue Code of 
1986 is amended by adding at the end the following new 
section: 
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‘‘SEC. 45S. FRUIT AND VEGETABLE SMALL FARM CREDIT. 
‘‘(a) ALLOWANCE OF CREDIT.—For purposes of sec-
tion 38, in the case of an eligible taxpayer, the fruit and 
vegetable small farm credit determined under this section 
for such taxable year is an amount equal to the lesser of— 
‘‘(1) $10,000, or 
‘‘(2) the taxable income of the taxpayer for the 
taxable year attributable to the trade or business of 
fruit and vegetable farming. 
‘‘(b) ELIGIBLE TAXPAYER.—For purposes of this 
section— 
‘‘(1) IN GENERAL.—The term ‘eligible taxpayer’ 
means any taxpayer— 
‘‘(A) who is engaged in the trade or busi-
ness of fruit and vegetable farming, 
‘‘(B) with respect to whom at least 75 per-
cent of taxable income attributable to the trade 
or business of farming for the preceding taxable 
year was attributable to fruit and vegetable 
farming, 
‘‘(C) whose gross receipts attributable to 
fruit and vegetable farming for the preceding 
taxable year are not more than $500,000, and 
‘‘(D) who is a farm-related taxpayer. 
‘‘(2) FRUIT AND VEGETABLE FARMING.—The 
term ‘fruit and vegetable farming’ means the farm-
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ing and sale of fruits, vegetables, or both, in fresh 
form generally considered as perishable, but does not 
include any grains or any perishable fruits and vege-
tables which have been manufactured into articles of 
food of a different kind or character. 
‘‘(3) FARM-RELATED
TAXPAYER.—The term 
‘farm-related taxpayer’ means— 
‘‘(A) any farm-related taxpayer (as defined 
in section 464(f)(3)(B)), or 
‘‘(B) any corporation, partnership, or other 
entity, substantially all of which is owned by 
one or more farm-related taxpayers. 
‘‘(c) SPECIAL RULES.—For purposes of this sec-
tion— 
‘‘(1) AGGREGATION RULES.—All persons which 
are treated as a single employer under subsections 
(a) and (b) of section 52 shall be treated as a single 
taxpayer. 
‘‘(2) ESTATES
AND
TRUSTS.—Under regula-
tions prescribed by the Secretary, rules similar to 
the rules of subsection (d) of section 52 shall apply. 
‘‘(3) TAX EXEMPT ORGANIZATIONS.—No credit 
shall be allowed under section 38 for any fruit and 
vegetable small farm credit determined under this 
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subpart to any organization which is exempt from 
tax under this chapter. 
‘‘(4) ALLOCATION IN THE CASE OF PARTNER-
SHIPS.—In the case of partnerships, the credit shall 
be allocated among partners under regulations pre-
scribed by the Secretary.’’. 
(b) 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. 45S. Fruit and vegetable small farm credit.’’. 
(c) CONFORMING AMENDMENT.—Subsection (b) of 
section 38 of such Code is amended by striking ‘‘plus’’ 
at the end of paragraph (35), by striking the period at 
the end of paragraph (36) and inserting ‘‘, plus’’, and by 
adding at the end the following new paragraph: 
‘‘(37) the fruit and vegetable small farm credit 
determined under section 45S(a).’’. 
(d) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
the date of the enactment of this Act. 
Æ 
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