BIPARTISAN LEGISLATION WOULD PROVIDE TAX CREDIT

OABA joins ARA, TFI and other state associations in support

The new U.S. Department of Homeland Security (DHS) Chemical Facility Anti-Terrorism Standards interim final regulations where effective June 8, 2007. DHS is not likely to remove any chemicals from the list, including products such as propane or urea. These new regulations could cost an agricultural business tens of thousands of dollars in additional security measures at impacted facilities.

Bipartisan legislation ("Agricultural Business Security Tax Credit Act" - S. 551 / H.R. 1814,) sponsored in the House by Reps. Ron Lewis (R-KY) and Mike McIntyre (D-NC) and in the Senate by Senators Pat Roberts (R-KS), Ben Nelson (D-NE) and Johnny Isakson (R-GA), would provide a targeted tax credit to eligible agricultural businesses that implement additional security measures at facilities where agricultural fertilizers and pesticides are stored.

Under the legislation, an eligible business would receive a tax credit equivalent to 30 percent of the aggregate amount paid on implementing qualified security measures at facilities where pesticides and fertilizers are stored. A facility is limited to receiving no more than $100,000 in tax credit within a five year period. The bills include an overall annual cap of $2 million for any eligible business.