< Back to H.R. 2708 (103rd Congress, 1993–1994)

Text of To amend the Internal Revenue Code of 1986 to provide taxpayers engaged in certain agriculture-related activities a credit against income ...

...credit against income tax for property used to control environmental pollution and for soil and water conservation expen

This bill was introduced on July 22, 1993, in a previous session of Congress, but was not enacted. The text of the bill below is as of Jul 22, 1993 (Introduced).

Source: GPO

HR 2708 IH

103d CONGRESS

1st Session

H. R. 2708

To amend the Internal Revenue Code of 1986 to provide taxpayers engaged in certain agriculture-related activities a credit against income tax for property used to control environmental pollution and for soil and water conservation expenditures.

IN THE HOUSE OF REPRESENTATIVES

July 22, 1993

Mr. GRANDY (for himself and Mr. BREWSTER) 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 taxpayers engaged in certain agriculture-related activities a credit against income tax for property used to control environmental pollution and for soil and water conservation expenditures.

    Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,

SECTION 1. CREDIT FOR PROPERTY USED IN CERTAIN AGRICULTURE-RELATED ACTIVITIES TO CONTROL ENVIRONMENTAL POLLUTION AND FOR SOIL AND WATER CONSERVATION EXPENDITURES.

    (a) IN GENERAL- Section 46 of the Internal Revenue Code of 1986 (relating to amount of investment credit) is amended by striking ‘and’ at the end of paragraph (2), by striking the period at the end of paragraph (3) and inserting ‘, and’, and by adding at the end thereof the following paragraph:

      ‘(4) in the case of an eligible taxpayer (as defined in section 48(c)), the agricultural environmental credit.’

    (b) AGRICULTURAL ENVIRONMENTAL CREDIT- Section 48 of such Code is amended by adding at the end thereof the following new subsection:

    ‘(c) AGRICULTURAL ENVIRONMENTAL CREDIT-

      ‘(1) IN GENERAL- For purposes of section 46, in the case of an eligible taxpayer, the agricultural environmental credit for any taxable year is--

        ‘(A) 15 percent of the portion of the basis of each agricultural environmental property placed in service by the taxpayer during such taxable year, and

        ‘(B) 15 percent of the amount allowed as a deduction under section 175 (determined without regard to paragraph (4)(B)) for such taxable year.

      ‘(2) ELIGIBLE TAXPAYER-

        ‘(A) IN GENERAL- For purposes of this subsection, the term ‘eligible taxpayer’ means any taxpayer primarily engaged in a farming-related business.

        ‘(B) FARMING-RELATED BUSINESS- For purposes of this subsection, the term ‘farming-related business’ means--

          ‘(i) a farming business (as defined in section 263A(e)(4)),

          ‘(ii) a trade or business of mixing fertilizers from purchased fertilizer materials, and

          ‘(iii) a trade or business of the wholesale distribution of animal feeds, fertilizers, agricultural chemicals, pesticides, seeds, or other farm supplies (other than grains).

      ‘(3) AGRICULTURAL ENVIRONMENTAL PROPERTY-

        ‘(A) IN GENERAL- For purposes of this subsection, the term ‘agricultural environmental property’ means any new identifiable treatment facility--

          ‘(i) which is used in a farming-related business for the primary purpose of complying with Federal, State, and local environmental laws dealing with the abatement or control of water, soil, or atmospheric pollution or contamination by removing, altering, disposing, storing, or preventing the creation or emission of pollutants, contaminants, wastes, or heat, and

          ‘(ii) which does not significantly--

            ‘(I) increase the output or capacity, extend the useful life, or reduce the total operating costs of plant or property to which such facility relates, or

            ‘(II) alter the nature of any manufacturing or production process or facility.

        ‘(B) NEW IDENTIFIABLE TREATMENT FACILITY- The term ‘new identifiable treatment facility’ has the meaning given such term by section 169(e)(4)(A), determined by substituting ‘December 31, 1993’ for ‘December 31, 1968’.

      ‘(4) SPECIAL RULES-

        ‘(A) COORDINATION WITH ENERGY AND REHABILITATION CREDITS- This subsection shall not apply to--

          ‘(i) any property to the extent the basis of such property is attributable to qualified rehabilitation expenditures (as defined in section 47(c)(2)), or

          ‘(ii) energy property.

        ‘(B) COORDINATION WITH DEDUCTION FOR SOIL AND WATER CONSERVATION EXPENDITURES- The amount which would (but for this subparagraph) be allowed as a deduction under section 174 for any taxable year shall be reduced by the amount of the credit allowed by paragraph (1)(B) for such year.

        ‘(C) COORDINATION WITH AMORTIZATION OF POLLUTION CONTROL FACILITIES- This subsection shall not apply to any property to the extent an election is made under section 169 with respect to the basis of such property.’

    (c) CLERICAL AMENDMENTS-

      (1) The section heading for section 48 of such Code is amended to read as follows:

‘SEC. 48. ENERGY CREDIT; REFORESTATION CREDIT; AGRICULTURAL ENVIRONMENTAL CREDIT.’

      (2) The item relating to section 48 in the table of sections for subpart E of part IV of subchapter A of chapter 1 of such Code is amended to read as follows:

‘Sec. 48. Energy credit; reforestation credit; agricultural environmental credit.’

    (d) EFFECTIVE DATE- The amendments made by this section shall apply to periods after December 31, 1993, 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).