§45O Agricultural chemicals security credit

Summary

Gives a tax credit equal to 30 percent of an eligible farm business’s spending on protecting certain agricultural chemicals in a tax year. The credit for any one facility can't be more than $100,000 for the year, but that cap is reduced by the total of such credits claimed for that facility in the 5 prior taxable years. A taxpayer cannot get more than $2,000,000 of these credits in a year. Qualified spending includes things like employee security training and background checks; limiting access to chemical controls; tagging, locking valves, or adding chemicals to stop theft or illegal use; perimeter protection; lights, cameras, and alarms; computer security; vulnerability assessments; and site security plans, plus other measures the Secretary may allow. Eligible businesses are retail sellers who mostly sell to farmers and ranchers or businesses that make, mix, distribute, or apply the listed chemicals. “Specified agricultural chemical” means certain fertilizers listed under section 302(a)(2) of the Emergency Planning and Community Right-to-Know Act of 1986, section 101 of 49 CFR part 172, or 33 CFR parts 126, 127, or 154, and pesticides as defined in section 2(u) of the Federal Insecticide, Fungicide, and Rodenticide Act (including active and inert ingredients) used on crops for food, feed, or fiber. Some rules like those in section 41(f) apply, and the Secretary can make regulations about mixed-use costs and when related properties count as one facility. The credit does not cover amounts paid or incurred after December 31, 2012.