I 
110TH CONGRESS 
1ST SESSION H. R. 2110 
To amend the Internal Revenue Code of 1986 to provide for tax exempt 
qualified small issue bonds to finance agricultural processing property. 
IN THE HOUSE OF REPRESENTATIVES 
MAY 2, 2007 
Mr. FORTENBERRY (for himself, Mr. PETERSON of Minnesota, Mr. TERRY, 
and Mr. SMITH of Nebraska) introduced the following bill; which was re-
ferred to the Committee on Ways and Means 
A BILL 
To amend the Internal Revenue Code of 1986 to provide 
for tax exempt qualified small issue bonds to finance 
agricultural processing property. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. QUALIFIED SMALL ISSUE BONDS FOR AGRICUL-
TURAL PROCESSING PROPERTY. 
(a) IN GENERAL.—Subparagraph (B) of section 
144(a)(12) of the Internal Revenue Code of 1986 is 
amended by striking ‘‘or’’ at the end of clause (i), by re-
designating clause (ii) as clause (iii), and by inserting 
after clause (i) the following new clause: 
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‘‘(ii) any agricultural processing prop-
erty, or’’. 
(b) AGRICULTURAL PROCESSING PROPERTY.—Para-
graph (12) of section 144(a) of such Code is amended by 
adding at the end the following new subparagraph: 
‘‘(D) AGRICULTURAL
PROCESSING
PROP-
ERTY.— 
‘‘(i) IN
GENERAL.—For purposes of 
this paragraph, the term ‘agricultural 
processing property’ means any depreciable 
property or land, which is used primarily 
for the processing of agricultural products. 
‘‘(ii) PROCESSING.—For purposes of 
this subparagraph, the term ‘processing’ 
includes pasteurizing, slaughtering, wash-
ing, peeling, cutting, freezing, preserving, 
and packaging. Such term does not include 
planting, raising, harvesting, gathering, 
breeding, feeding, or milking. 
‘‘(iii) AGRICULTURAL
PRODUCTS.— 
For purposes of this subparagraph, the 
term ‘agricultural products’ includes plant 
and dairy products, meats, fish, and poul-
try.’’. 
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(c) EXCEPTION TO LIMITATION ON ACQUISITION OF 
DEPRECIABLE FARM PROPERTY.—Subparagraph (B) of 
section 144(a)(11) of such Code is amended by inserting 
‘‘(other than agricultural processing property, as defined 
in paragraph (12)(D))’’ after ‘‘means property’’. 
(d) EXCEPTION TO PROHIBITION ON ACQUISITION OF 
LAND FOR FARMING PURPOSES.—Subsection (c) of sec-
tion 147 of such Code is amended by adding at the end 
the following new paragraph: 
‘‘(4) EXCEPTION
FOR
AGRICULTURAL
PROC-
ESSING
PROPERTY.—Paragraph (1)(B) shall not 
apply with respect to any agricultural processing 
property (as defined in section 144(a)(12)(D)).’’. 
(e) EXCEPTION TO PROHIBITION ON ACQUISITION OF 
EXISTING PROPERTY.—Subsection (d) of section 147 of 
such Code is amended by adding at the end the following 
new paragraph: 
‘‘(5) EXCEPTION
FOR
AGRICULTURAL
PROC-
ESSING PROPERTY.—Paragraph (1) shall not apply 
with respect to any agricultural processing property 
(as defined in section 144(a)(12)(D)).’’. 
(f) EFFECTIVE DATE.—The amendments made by 
this section shall apply to bonds issued after the date of 
the enactment of this Act. 
Æ 
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