I 
117TH CONGRESS 
1ST SESSION H. R. 4854 
To amend the Internal Revenue Code of 1986 to provide incentives for 
livestock processing facilities. 
IN THE HOUSE OF REPRESENTATIVES 
JULY 29, 2021 
Mr. SMITH of Missouri (for himself and Mr. JOHNSON of South Dakota) in-
troduced 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 
incentives for livestock processing facilities. 
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 ‘‘Feed America by 
Incentivizing Rural Meat Packing Act’’ or as the ‘‘FAIR 
Meat Packing Act’’. 
SEC. 2. CREDIT FOR LIVESTOCK PROCESSING FACILITIES. 
(a) IN GENERAL.—Subpart E of part IV of sub-
chapter A of chapter 1 of the Internal Revenue Code of 
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1986 is amended by inserting after section 48C the fol-
lowing new section: 
‘‘SEC. 48D. LIVESTOCK PROCESSING FACILITIES CREDIT. 
‘‘(a) IN GENERAL.—For purposes of section 46, the 
livestock processing facilities credit for any taxable year 
is an amount equal to 25 percent of the basis of each live-
stock processing facility property placed in service by the 
taxpayer during such taxable year. 
‘‘(b) LIMITATION ON CREDIT AMOUNT.—The credit 
determined under subsection (a) with respect to any tax-
payer for any taxable year shall not exceed $250,000. 
‘‘(c) 
EXCLUSION
OF
CERTAIN
LARGE
PROC-
ESSORS.—No credit shall be allowed under subsection (a) 
to any taxpayer for any taxable year if the gross receipts 
(within the meaning of section 448(c) of the Internal Rev-
enue Code of 1986) of such taxpayer for such taxable year 
exceed $100,000,000. 
‘‘(d) LIVESTOCK
PROCESSING
FACILITY
PROP-
ERTY.—For purposes of this section— 
‘‘(1) IN GENERAL.—The term ‘livestock proc-
essing facility property’ means property with respect 
to which depreciation (or amortization in lieu of de-
preciation) is allowable and which is part of a live-
stock processing facility. 
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‘‘(2) TRADE OR BUSINESS REQUIREMENT.—The 
term ‘livestock processing facility property’ shall not 
include any property unless such property is used in 
the taxpayer’s trade or business of processing live-
stock. 
‘‘(e) OTHER DEFINITIONS.—For purposes of this 
section— 
‘‘(1) LIVESTOCK PROCESSING FACILITY.—The 
term ‘livestock processing facility’ means a facility 
which slaughters livestock for processing into meat 
and meat products, which participates in a meat and 
poultry inspection program conducted by the De-
partment of Agriculture or the State in which such 
facility is located, and at which an average of fewer 
than 500 employees are employed on business days 
during the taxable year. Such term shall include any 
property used for the intake or storage of livestock, 
the disposal or management of livestock waste, or 
the packaging, handling, warehousing, or storage of 
meat products, if such property is located on the 
same site as such facility. 
‘‘(2) LIVESTOCK.—The term ‘livestock’ means 
cattle, sheep, goats, bison, swine, and poultry. 
‘‘(f) SPECIAL RULES.— 
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‘‘(1) CERTAIN PROGRESS EXPENDITURE RULES 
MADE APPLICABLE.—Rules similar to the rules of 
subsections (c)(4) and (d) of section 46 (as in effect 
on the day before the date of the enactment of the 
Revenue Reconciliation Act of 1990) shall apply for 
purposes of subsection (a). 
‘‘(2) AGGREGATION
RULE.—For purposes of 
subsections (b) and (c), all members of the same 
controlled group of corporations (within the meaning 
of section 267(f)) and all persons under common 
control (within the meaning of section 52(b) but de-
termined by treating an interest of more than 50 
percent as a controlling interest) shall be treated as 
1 person and the dollar limitation under subsection 
(b) shall be allocated in such manner as the Sec-
retary may provide. 
‘‘(3) 
ELECTION
TO
NOT
HAVE
SECTION 
APPLY.—No credit shall be determined under sub-
section (a) with respect to any taxpayer for any tax-
able year if such taxpayer make an election under 
this paragraph (at such time and in such manner as 
the Secretary may provide) to have such subsection 
not apply for such taxable year. 
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(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to periods after the date of the 
enactment of this Act under rules similar to the rules of 
section 48(m) of the Internal Revenue Code of 1986 (as 
in effect on the day before the date of the enactment of 
the Revenue Reconciliation Act of 1990). 
SEC. 3. REFUNDABLE CREDIT FOR STARTUP AND ORGANI-
ZATIONAL EXPENDITURES WITH RESPECT TO 
LIVESTOCK PROCESSING FACILITIES. 
(a) IN GENERAL.—Subpart C of part IV of sub-
chapter A of chapter 1 of the Internal Revenue Code of 
1986 is amended by inserting after section 36B the fol-
lowing new section: 
‘‘SEC. 36C. CREDIT FOR STARTUP AND ORGANIZATIONAL 
EXPENDITURES OF LIVESTOCK PROCESSING 
FACILITIES. 
‘‘(a) IN GENERAL.—There shall be allowed as a cred-
it against the tax imposed by this subtitle for any taxable 
year an amount equal to 90 percent of the sum of— 
‘‘(1) the qualified livestock processing facility 
start-up expenditures of the taxpayer for such tax-
able year, 
‘‘(2) the qualified livestock processing facility 
corporate organizational expenditures of the tax-
payer for such taxable year, plus 
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‘‘(3) the qualified livestock processing facility 
partnership organizational expenditures of the tax-
payer for such taxable year. 
‘‘(b) QUALIFIED LIVESTOCK PROCESSING FACILITY 
START-UP EXPENDITURES.—For purposes of this section, 
the term ‘qualified livestock processing facility start-up ex-
penditures’ means, with respect to any taxpayer for any 
taxable year, the amount which would be allowed as a de-
duction under section 195 to such taxpayer for such tax-
able year with respect to any trade or business which 
slaughters livestock into meat or meat products if— 
‘‘(1) section 195(b)(1)(A)(ii) were applied— 
‘‘(A) 
by 
substituting 
‘$10,000’ 
for 
‘$5,000’, and 
‘‘(B) 
by 
substituting 
‘$60,000’ 
for 
‘$50,000’, and 
‘‘(2) subsection (f) of this section did not apply. 
‘‘(c) QUALIFIED LIVESTOCK PROCESSING FACILITY 
CORPORATE
ORGANIZATIONAL
EXPENDITURES.—For 
purposes of this section, the term ‘qualified livestock proc-
essing facility corporate organizational expenditures’ 
means, with respect to any taxable year of any corporation 
substantially all of the gross receipts (within the meaning 
of section 448(c) of the Internal Revenue Code of 1986) 
of which are reasonably expected to be derived from a 
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trade or business which slaughters livestock into meat or 
meat products, the amount which would be allowed as a 
deduction under section 248 to such corporation for such 
taxable year if— 
‘‘(1) section 248(a)(1)(B) were applied— 
‘‘(A) 
by 
substituting 
‘$10,000’ 
for 
‘$5,000’, and 
‘‘(B) 
by 
substituting 
‘$60,000’ 
for 
‘$50,000’, 
‘‘(2) in the case of any entity with a single 
owner that is disregarded as an entity separate from 
its owner, section 248 were applied as if such entity 
were a corporation, and 
‘‘(3) subsection (f) of this section did not apply. 
‘‘(d) QUALIFIED LIVESTOCK PROCESSING FACILITY 
PARTNERSHIP ORGANIZATIONAL EXPENDITURES.—For 
purposes of this section, the term ‘qualified livestock proc-
essing facility partnership organizational expenditures’ 
means, with respect to any taxable year of any partnership 
substantially all of the gross receipts (within the meaning 
of section 448(c) of the Internal Revenue Code of 1986) 
of which are reasonably expected to be derived from a 
trade or business which slaughters livestock into meat or 
meat products, the amount which would be allowed as a 
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deduction under section 709 with respect to such partner-
ship for such taxable year if— 
‘‘(1) section 709(b)(1)(A)(ii) were applied— 
‘‘(A) 
by 
substituting 
‘$10,000’ 
for 
‘$5,000’, and 
‘‘(B) 
by 
substituting 
‘$60,000’ 
for 
‘$50,000’, and 
‘‘(2) subsection (f) of this section did not apply. 
‘‘(e) LIVESTOCK.—For purposes of this section, the 
term ‘livestock’ means cattle, elk, reindeer, bison, deer, 
sheep, goats, swine, and poultry. 
‘‘(f) DENIAL OF DOUBLE BENEFIT.—Any deduction 
or credit allowed under this title (other than this section) 
with respect to any qualified livestock processing facility 
start-up expenditures, qualified livestock processing facil-
ity corporate organizational expenditures, or qualified live-
stock processing facility partnership organizational ex-
penditures shall be reduced by the amount of the credit 
determined under this section. 
‘‘(g) RECAPTURE.—If any credit is allowed under this 
section to any taxpayer for any taxable year with respect 
to any trade or business of processing livestock (including 
with respect to any entity substantially all of the gross 
receipts of which are with respect to the trade or business 
of processing of livestock) and such trade or business 
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ceases to be conducted during the 3-taxable-year period 
following the taxable in which such credit is so allowed, 
the tax imposed under this chapter on such taxpayer for 
the taxable year in which such trade or business ceases 
shall be increased by the amount of the credit so allowed. 
‘‘(h) TERMINATION.—No credit shall be allowed 
under subsection (a) with respect to any taxable year be-
ginning after December 31, 2026.’’. 
(b) CONFORMING AMENDMENTS.— 
(1) Section 6211(b)(4)(A) of such Code is 
amended by inserting ‘‘36C,’’ after ‘‘36B,’’. 
(2) Paragraph (2) of section 1324(b) of title 
31, United States Code, is amended by inserting 
‘‘36C,’’ after ‘‘36B,’’. 
(3) The table of sections for subpart C of part 
IV of subchapter A of chapter 1 of the Internal Rev-
enue Code of 1986 is amended by inserting after the 
item relating to section 36B the following new item: 
‘‘Sec. 36C. Credit for startup and organizational expenditures of livestock proc-
essing facilities.’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable year ending after the 
date of the enactment of this Act. 
Æ 
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