I 
109TH CONGRESS 
1ST SESSION 
H. R. 713
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 
FEBRUARY 9, 2005
Mr. LEWIS of Kentucky (for himself, Mr. KINGSTON, Mr. BERRY, Mrs. 
CUBIN, Mr. BISHOP of Georgia, Mr. HOSTETTLER, Mr. TERRY, Mr. 
MCINTYRE, Mr. JENKINS, Mr. BUTTERFIELD, Mr. WHITFIELD, Mr. 
ENGLISH of Pennsylvania, and Mr. ROGERS of Kentucky) 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 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 2005’’. 
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
1986 (relating to business related credits) is amended by 
adding at the end the following new section: 
‘‘SEC. 45J. 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 50 percent of the aggregate 
amount paid or incurred by the eligible agricultural busi-
ness for the purpose of protecting any specified hazardous 
chemicals or any specified pesticide from unauthorized ac-
cess. 
‘‘(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) 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) being a retailer of agricultural products, or
‘‘(2) manufacturing, formulating, distributing, 
or aerially applying fertilizer or specified pesticides. 
‘‘(e) SPECIFIED HAZARDOUS CHEMICALS.—For pur-
poses of this section, the term ‘specified hazardous chem-
ical’ means any extremely hazardous substance listed 
under section 302(a)(2) of the Emergency Planning and 
Community Right-to-Know Act of 1986, and any haz-
ardous material listed under section 101 of part 172 of 
title 49, Code of Federal Regulations, or part 126, 127, 
or 154 of title 33, Code of Federal Regulations. 
‘‘(f) SPECIFIED PESTICIDE.—For purposes of this 
section, the term ‘specified pesticide’ means any pesticide 
(as defined in section 2(u) of the Federal Insecticide, Fun-
gicide, and Rodenticide Act), including all active and inert 
ingredients thereof, which is customarily used on food, 
feed, or crops. 
‘‘(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 hazardous chemical or any 
specified pesticide and for other purposes, and 
‘‘(2) provide for the treatment of related prop-
erties as one facility for purposes of subsection (b).’’. 
(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 (18), by strik-
ing the period at the end of paragraph (19) and inserting 
‘‘, plus’’, and by adding at the end the following new para-
graph: 
‘‘(20) in the case of an eligible agricultural 
business (as defined in section 45J(d)), the agricul-
tural chemicals security credit determined under sec-
tion 45J(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 
45J for the taxable year which is equal to the amount 
of the credit determined for such taxable year under sec-
tion 45J(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. 45J. Agricultural chemicals security credit.’’.
(e) EFFECTIVE DATE.—The amendments made by 
this section shall apply to amounts paid or incurred during 
taxable years ending after the date of the enactment of 
this Act.
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