12 2 STA T . 1 5 1 8PUBLIC LA W 11 0– 2 34—M A Y 22 , 2008 SEC.15342 . AL L OW A N CEO F SEC TI ON1 0 31T R EAT M ENT FOR E X C H AN G ES IN V OLVING CERTAIN M U TUAL D ITCH , RES - ERVOIR, OR IRRIGATION COM P AN Y STOC K . (a)INGE NE RAL.—Section103 1( r e l atin g toe x c h ange o fp ropert y hel d for prod u cti v eu s e or invest m ent) is amended b y adding at the end the follo w ing new subsection
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‘(i) S P E CI AL RU LE SFO R M U T UAL D ITC H, RESER V OIR, OR IRRI G A - TION C O M PAN Y STOC K .— F or purposes of subsection (a)( 2 )( B ), the term ‘stoc k s ’ shall not include shares in a mutual ditch, reservoir, or irrigation company if at the time of the exchange— ‘‘(1) the mutual ditch, reservoir, or irrigation company is an organi z ation described in section 5 01(c)(12)( A ) (determined without regard to the percentage of its income that is collected from its members for the purpose of meeting losses and expenses), and ‘‘(2) the shares in such company have been recognized by the highest court of the State in which such company was organized or by applicable State statute as constituting or representing real property or an interest in real property.’’. (b) E FFECTIVE DATE.— T he amendment made by this section shall apply to exchanges completed after the date of the enactment of this Act. SEC. 15343. AGRICULTURAL CHEMICALS SECURITY CREDIT. (a) IN GENERAL.—Subpart D of part I V of subchapter A of chapter 1 (relating to business related credits) is amended by adding at the end the following new section: ‘ ‘SEC. 45O. AGRICULTURAL CHEMICALS SECURITY CREDIT. ‘‘(a) IN GENERAL.—For purposes of section 3 8 , inthecaseof an eligible agricultural business, the agricultural chemicals security credit determined under this section for the taxable year is 30 percent of the q ualified security expenditures for the taxable year. ‘‘(b) FACILITY L IMITATION.—The amount of the credit deter- mined under subsection (a) with respect to any facility for any taxable year shall not exceed— ‘‘(1) $ 100,000, reduced by ‘‘(2) the aggregate amount of credits determined under subsection (a) with respect to such facility for the 5 prior taxable years. ‘‘(c) ANNUAL LIMITATION.—The amount of the credit determined under subsection (a) with respect to any taxpayer for any taxable year shall not exceed $2,000,000. ‘‘(d) Q UALIFIE D CHEMICAL SECURITY E X PENDITURE.—For pur- poses of this section, the term ‘qualified chemical security expendi- ture’ means, with respect to any eligible agricultural business for any taxable year, any amount paid or incurred by such business during such taxable year for— ‘‘(1) employee security training and background checks, ‘‘(2) limitation and prevention of access to controls of speci- fied agricultural chemicals stored at the facility, ‘‘(3) tagging, locking tank valves, and chemical additives to prevent the theft of specified agricultural chemicals or to render such chemicals unfit for illegal use, ‘‘( 4 ) protection of the perimeter of specified agricultural chemicals, 26USC103 1 note. 26 USC 1031.
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