To amend the Internal Revenue Code of 1986 to provide a credit to certain concentrated animal feeding operations for the cost of complying with environmental protection regulations.
Mr. SMITH of Nebraska (for himself, Mr. HAYES, Mr. CONAWAY, and Mrs. MUSGRAVE) introduced the following bill; which was referred to the Committee on Ways and Means
To amend the Internal Revenue Code of 1986 to provide a credit to certain concentrated animal feeding operations for the cost of complying with environmental protection regulations.
--40.
`(b) Limitation- The amount of credit allowed under subsection (a) for any taxable year shall not exceed $500,000.
`(c) Eligible Taxpayer- For purposes of this section, the term `eligible taxpayer' means an owner or operator of a concentrated animal feeding operation (as defined under section 122.23 of title 40, Code of Federal Regulations).
`(d) Qualified Compliance Costs- For purposes of this section--
`(1) IN GENERAL- The term `qualified compliance costs' means costs paid or incurred for compliance with a national pollutant discharge elimination system permit issued under section 402 of the Federal Water Pollution Control Act (33 U.S.C. 1342).
`(2) EXCLUSION FOR AMOUNTS FUNDED BY GRANTS, ETC- The term `qualified compliance costs' shall not include any amount to the extent such amount is funded by any grant, contract, or otherwise by another person (or any governmental entity).
`(e) Special Rules-
`(1) REDUCTION IN BASIS- For purposes of this subtitle, if a credit is determined under this section for any expenditure with respect to any property, the increase in basis of such property which would (but for this subsection) result from such expenditure shall be reduced by the amount of the credit so determined.
`(2) WHEN COSTS PAID OR INCURRED- For purposes of this section, a cost shall be treated as paid or incurred in the year in which the taxpayer achieves compliance with the national pollutant discharge elimination system permit issued under section 402 of the Federal Water Pollution Control Act (33 U.S.C. 1342).
`(3) DENIAL OF DOUBLE BENEFIT- No deduction or other credit shall be allowed under this chapter for any amount taken into account in determining the credit under this section.
`(f) Termination- This section shall not apply to expenditures paid or incurred after December 31, 2014.'.
(b) Credit Made Part of General Business Credit- Section 38(b) of the Internal Revenue Code of 1986 is amended by striking `plus' at the end of paragraph (30), by striking the period at the end of paragraph (31) and inserting `, plus', and by adding at the end the following new paragraph:
(c) Conforming Amendments-
(1) Section 1016(a) of the Internal Revenue Code of 1986 is amended by striking `and' at the end of paragraph (36), by striking the period at the end of paragraph (37) and inserting `, and', and by inserting after paragraph (37) the following new paragraph:
`(38) to the extent provided in section 45O(e)(1).'.
(2) The table of sections for subpart D of part IV of subchapter A of chapter 1 of such Code is amended by adding at the end the following new item:
`Sec. 45O. Credit for compliance costs for concentrated animal feeding operations.'.
(d) Effective Date- The amendments made by this section shall apply to expenditures paid or incurred after December 31, 2006.
U.S. Congress - Text of H.R.1217 as Introduced in House CAFO Tax Credit Act of 2007
