The Senate Finance Committee on Oct. 4 approved the Heartland, Habitat, Harvest, and Horticulture Act of 2007, which includes the Agricultural Business Security Tax Credit Act. The security tax credit proposal, sponsored by Sen. Pat Roberts (R-Kan.) and supported by the fertilizer and agri-chemical industries, provides a tax credit for 30 percent of costs to implement security measures at agricultural facilities where pesticides and fertilizers are stored.
Agriculture retailers, distributors, manufacturers, formulators, and aerial applicators of agricultural pesticides or fertilizers are eligible for the credit, which is intended to help pay for security measures, including employee security training and background checks, installation of security equipment, and computer network safeguards. The proposal sets a $2 million annual limit and a per facility limitation of $100,000 (reduced by credits received for the five prior taxable years). The cost is $14 million over ten years.
“It is critical that we think outside the box to continue to fight and win the war on terrorism,” Sen. Roberts said. “It is also no secret that highly hazardous and volatile chemicals are used in agriculture and should be secured from terrorists. This tax credit will pass on savings to benefit not only the agribusiness, but the producer and eventually, the consumer.”
“With the issuance of new Department of Homeland Security regulations and the importance of securing agricultural fertilizers and pesticides storage facilities, this much-needed tax credit will assist our industry with implementation costs to improve security,” said Jack Eberspacher, president and CEO of the Agricultural Retailers Association. “ARA is working with a broad coalition, including the National Agricultural Aviation Association, CropLife America, Chemical Producers and Distributors, The Fertilizer Institute and state and regional associations, such as Montana, Kansas, Nebraska, Far West, Michigan, New York and Iowa, to secure passage by contacting key committee members from their respective states.”
The bill now goes to the full Senate for debate and a vote. If approved, it will likely be attached to the Senate’s version of the 2007 Farm bill once that is ready for consideration on the Senate floor. Industry trade groups say they will work to ensure it is included in the final conference agreement between the Senate and House.