Lewes CPA
officeProgar & Company, P.A.
Certified Public Accounting services for businesses and individuals
Agricultural chemicals security tax credit created by the Heartland,
Habitat, Harvest, and Horticulture Act of 2008
Dear Reader,
The recently enacted “Heartland, Habitat, Harvest, and Horticulture
Act of 2008” (the 2008 Farm Act) contains a package of tax
incentives to promote conservation investment in farm country. One
fairly specialized new incentive addresses the need to safely secure
agricultural chemicals. Agricultural chemicals and pesticides
purchased for legitimate uses are increasingly vulnerable to theft
because of the drug trade and national security threats. Some
agricultural businesses may pay tens of thousands of dollars on new
measures to secure their storage sites. In recognition of this, the
2008 Farm Act creates a new credit to help agricultural businesses
afford the increasing expenses of protecting agricultural chemicals
and pesticides.
The new law provides retailers of agricultural products and
chemicals and manufacturers, formulators, or distributors of certain
pesticides a business tax credit for 30% of costs for the protection
of such chemicals or pesticides. Such protection costs include
employee security training and background checks, installation of
security equipment, and computer network safeguards. The credit has
a $2 million annual limit and a per facility limitation of $100,000
(reduced by credits received for the five prior tax years). This
credit is effective for expenses paid or incurred after May 22,
2008, and before Jan. 1, 2013.
I hope this information is helpful. If you would like more details
about this or any other aspect of the new law, please do not
hesitate to call.