I 
108TH CONGRESS 
2D SESSION 
H. R. 4718 
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 
JUNE 25, 2004 
Mr. LEWIS of Kentucky (for himself and Mr. WHITFIELD) 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 2004’’. 
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:
‘‘(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, which is held for 
sale in the trade or business of being a retailer of agricul-
tural products. 
‘‘(f) FOOD-USE PESTICIDE.—For purposes of this 
section, the term ‘food-use 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 
food-use 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 (14), by strik-
ing the period at the end of paragraph (15) and inserting 
‘‘, plus’’, and by adding at the end the following new para-
graph: 
‘‘(16) in the case of an eligible agricultural 
business (as defined in section 45G(d)), the agricul-
tural chemicals security credit determined under sec-
tion 45G(a).’’. 
(c) NO CARRYBACKS.—Subsection (d) of section 39 
of such Code (relating to carryback and carryforward of 
unused credits) is amended by adding at the end the fol-
lowing: 
‘‘(11) NO CARRYBACK OF SECTION 46G CREDIT 
BEFORE EFFECTIVE DATE.—No portion of the un-
used business credit for any taxable year which is 
attributable to the agricultural chemicals security 
credit determined under section 45G may be carried 
back to a taxable year beginning before the date of 
the enactment of this Act.’’.
(d) DENIAL OF DOUBLE BENEFIT.—Section 280C of 
such Code is amended by adding at the end the following 
new subsection: 
‘‘(d) 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 
45G for the taxable year which is equal to the amount 
of the credit determined for such taxable year under sec-
tion 45G(a).’’. 
(e) 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. 45G. Agricultural chemicals security credit.’’. 
(f) EFFECTIVE DATE.—The amendments made by 
this section shall apply to amounts paid or incurred after 
the date of the enactment of this Act. 
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