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and shall include any affiliated entity which is con-
trolled by such lender.
‘‘(4) COOPERATIVE
ELECTRIC
COMPANY.—The
term ‘cooperative electric company’ means a mutual
or cooperative electric company described in section
501(c)(12) or section 1381(a)(2)(C), or a not-for-prof-
it electric utility which has received a loan or loan
guarantee under the Rural Electrification Act.
‘‘(5) GOVERNMENTAL BODY.—The term ‘govern-
mental body’ means any State, territory, possession of
the United States, the District of Columbia, Indian
tribal government, and any political subdivision
thereof.
‘‘(k) SPECIAL RULES RELATING TO POOL BONDS.—
No portion of a pooled financing bond may be allocable to
loan unless the borrower has entered into a written loan
commitment for such portion prior to the issue date of such
issue.
‘‘(l) OTHER DEFINITIONS AND SPECIAL RULES.—For
purposes of this section—
‘‘(1) BOND.—The term ‘bond’ includes any obli-
gation.
‘‘(2) POOLED
FINANCING
BOND.—The term
‘pooled financing bond’ shall have the meaning given
such term by section 149(f)(4)(A).
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‘‘(3) RURAL AREA.—The term ‘rural area’ shall
have the meaning given such term by section
1393(a)(2).
‘‘(4) PARTNERSHIP; S CORPORATION; AND OTHER
PASS-THRU ENTITIES.—
‘‘(A) IN GENERAL.—Under regulations pre-
scribed by the Secretary, in the case of a part-
nership, trust, S corporation, or other pass-thru
entity, rules similar to the rules of section 41(g)
shall apply with respect to the credit allowable
under subsection (a).
‘‘(B) NO BASIS ADJUSTMENT.—In the case
of a bond held by a partnership or an S corpora-
tion, rules similar to the rules under section
1397E(i) shall apply.
‘‘(5) BONDS HELD BY REGULATED INVESTMENT
COMPANIES.—If any rural renaissance bond is held
by a regulated investment company, the credit deter-
mined under subsection (a) shall be allowed to share-
holders of such company under procedures prescribed
by the Secretary.
‘‘(6) REPORTING.—Issuers of rural renaissance
bonds shall submit reports similar to the reports re-
quired under section 149(e).
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‘‘(7) TERMINATION.—This section shall not
apply with respect to any bond issued after December
31, 2008.’’.
(b) REPORTING.—Subsection (d) of section 6049 (relat-
ing to returns regarding payments of interest) is amended
by adding at the end the following new paragraph:
‘‘(9) REPORTING OF CREDIT ON RURAL RENAIS-
SANCE BONDS.—
‘‘(A) IN GENERAL.—For purposes of sub-
section (a), the term ‘interest’ includes amounts
includible in gross income under section 54A(g)
and such amounts shall be treated as paid on the
credit allowance date (as defined in section
54A(b)(4)).
‘‘(B) REPORTING TO CORPORATIONS, ETC.—
Except as otherwise provided in regulations, in
the case of any interest described in subpara-
graph (A), subsection (b)(4) shall be applied
without regard to subparagraphs (A), (H), (I),
(J), (K), and (L)(i) of such subsection.
‘‘(C) REGULATORY
AUTHORITY.—The Sec-
retary may prescribe such regulations as are nec-
essary or appropriate to carry out the purposes
of this paragraph, including regulations which
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require more frequent or more detailed report-
ing.’’.
(c) CONFORMING AMENDMENTS.—
(1) The table of sections for subpart H of part
IV of subchapter A of chapter 1 is amended by adding
at the end the following new item:
‘‘Sec. 54A. Credit to holders of rural renaissance bonds.’’.
(2) Section 54(c)(2) is amended by inserting
‘‘section 54A,’’ after ‘‘subpart C,’’.
(d) ISSUANCE OF REGULATIONS.—The Secretary of
Treasury shall issue regulations required under section 54A
(as added by this section) not later than 120 days after
the date of the enactment of this Act.
(e) EFFECTIVE DATE.—The amendments made by this
section shall apply to bonds issued after the date of the en-
actment of this Act.
SEC. 12405. AGRICULTURAL CHEMICALS SECURITY CREDIT.
(a) IN GENERAL.—Subpart D of part IV of subchapter
A of chapter 1 (relating to business related credits) is
amended by adding at the end the following new section:
‘‘SEC. 45O. AGRICULTURAL CHEMICALS SECURITY CREDIT.
‘‘(a) IN GENERAL.—For purposes of section 38, in the
case of an eligible agricultural business, the agricultural
chemicals security credit determined under this section for
the taxable year is 30 percent of the qualified security ex-
penditures for the taxable year.
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‘‘(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 determined
under subsection (a) with respect to such facility for
the 5 prior taxable years.
‘‘(c) ANNUAL LIMITATION.—The amount of the credit
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—
‘‘(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 agricultural
chemicals or to render such chemicals unfit for illegal
use,
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‘‘(4) protection of the perimeter of specified agri-
cultural chemicals,
‘‘(5) installation of security lighting, cameras,
recording equipment, and intrusion detection sensors,
‘‘(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 are paid
or incurred for the purpose of protecting specified agricul-
tural chemicals.
‘‘(e) ELIGIBLE AGRICULTURAL BUSINESS.—For pur-
poses of this section, the term ‘eligible agricultural business’
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,
or aerially applying specified agricultural chemicals.
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‘‘(f) SPECIFIED AGRICULTURAL CHEMICAL.—For pur-
poses of this section, the term ‘specified agricultural chem-
ical’ 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
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 regulations
which—
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‘‘(1) provide for the proper treatment of amounts
which are paid or incurred for purpose of protecting
any specified agricultural chemical and for other pur-
poses, 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, 2012.’’.
(b) CREDIT ALLOWED AS PART OF GENERAL BUSI-
NESS CREDIT.—Section 38(b) is amended by striking
‘‘plus’’ at the end of paragraph (30), by striking the period
at the end of paragraph (31) and inserting ‘‘, plus’’, and
by adding at the end the following new paragraph:
‘‘(32) in the case of an eligible agricultural busi-
ness (as defined in section 45O(e)), the agricultural
chemicals security credit determined under section
45O(a).’’.
(c) DENIAL OF DOUBLE BENEFIT.—Section 280C is
amended by adding at the end the following new subsection:
‘‘(f) 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
45O for the taxable year which is equal to the amount of
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the credit determined for such taxable year under section
45O(a).’’.
(d) CLERICAL AMENDMENT.—The table of sections for
subpart D of part IV of subchapter A of chapter 1 is amend-
ed by adding at the end the following new item:
‘‘Sec. 45O. Agricultural chemicals security credit.’’.
(e) EFFECTIVE DATE.—The amendments made by this
section shall apply to amounts paid or incurred after the
date of the enactment of this Act.
SEC. 12406. CREDIT FOR DRUG SAFETY AND EFFECTIVE-
NESS TESTING FOR MINOR ANIMAL SPECIES.
(a) IN GENERAL.—Subpart D of part IV of subchapter
A of chapter 1 (relating to business related credits), as
amended by this Act, is amended by adding at the end the
following new section:
‘‘SEC. 45P. DRUG SAFETY AND EFFECTIVENESS TESTING
FOR MINOR ANIMAL SPECIES.
‘‘(a) ALLOWANCE OF CREDIT.—For purposes of section
38, in the case of an eligible taxpayer, the drug safety and
effectiveness testing for minor animal species credit deter-
mined under this section for the taxable year shall be an
amount equal to 50 percent of the qualified safety and effec-
tiveness testing expenses paid or incurred by the taxpayer
during the taxable year.
‘‘(b) ELIGIBLE TAXPAYER.—For purposes of this sec-
tion, the term ‘eligible taxpayer’ any taxpayer—
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‘‘(1) which—
‘‘(A) applies for the designation of a new
animal drug for use on a minor animal species
under section 573 of the Federal Food, Drug,
and Cosmetic Act, or
‘‘(B) owns animals which are the subject of
safety and effectiveness testing, and
‘‘(2) which elects the application of this section
for the taxable year.
‘‘(c) QUALIFIED SAFETY AND EFFECTIVENESS TEST-
ING EXPENSES.—For purposes of this section—
‘‘(1) IN GENERAL.—The term ‘qualified safety
and effectiveness testing expenses’ means the sum of
the following amounts which are paid or incurred by
the eligible taxpayer during the taxable year in car-
rying on any trade or business of such taxpayer:
‘‘(A) In-house safety and effectiveness test-
ing expenses.
‘‘(B) Contract safety and effectiveness test-
ing expenses.
Such term does not include any amount to the extent
such amount is funded by any grant, contract, or oth-
erwise by another person (or any governmental enti-
ty).
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‘‘(2) IN-HOUSE
SAFETY
AND
EFFECTIVENESS
TESTING EXPENSES.—
‘‘(A) IN
GENERAL.—The term ‘in-house
safety and effectiveness testing expenses’ means—
‘‘(i) any wages paid or incurred to an
employee for qualified services performed by
such employee,
‘‘(ii) any amount paid or incurred for
supplies used in the conduct of safety and
effectiveness testing, and
‘‘(iii) under regulations prescribed by
the Secretary, any amount paid or incurred
to another person for the right to use com-
puters in the conduct of safety and effective-
ness testing.
Clause (iii) shall not apply to any amount to the
extent that the taxpayer (or any person with
whom the taxpayer must aggregate expenditures
under rules specified under subsection (f)(2)) re-
ceives or accrues any amount from any other
person for the right to use substantially identical
personal property.
‘‘(B) 
QUALIFIED
SERVICES.—The 
term
‘qualified services’ means services consisting of—
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‘‘(i) engaging in safety and effective-
ness testing, or
‘‘(ii) engaging in the direct supervision
or direct support of such testing.
If substantially all of the services performed by
an individual for the taxpayer during the tax-
able year consists of services meeting the require-
ments of clause (i) or (ii), the term ‘qualified
services’ means all of the services performed by
such individual for the taxpayer during the tax-
able year.
‘‘(C) WAGES
AND
SUPPLIES.—The terms
‘wages’ and ‘supplies’ have the meanings given
such terms by section 41(b).
‘‘(3) CONTRACT
SAFETY
AND
EFFECTIVENESS
TESTING EXPENSES.—
‘‘(A) IN GENERAL.—The term ‘contract safe-
ty and effectiveness testing expenses’ means any
amount paid or incurred by the taxpayer to any
person (other than an employee of the taxpayer)
for safety and effectiveness testing.
‘‘(B) PREPAID AMOUNTS.—If any contract
safety and effectiveness testing expenses paid or
incurred during any taxable year are attrib-
utable to safety and effectiveness testing to be