This is a reminder to make sure ag retailers file the Agricultural Chemicals Security Credit form this quarter, before this credit expires next week on Dec. 31. Form 8931 distributed by the Internal Revenue Service (IRS) allows those individuals who are eligible to receive a 30 percent tax credit on any investments made towards facility security.

The Agricultural Retailers Association continues to advocate daily for the extension of this credit but given the uncertainty of what Congress will decide, it is best to utilize this credit now, ARA suggested to its membership with this announcement.

Who is eligible?

The law defines an eligible agricultural business as any retailer of fertilizer or ag chemical to farmers and ranchers and those that manufacture, formulate, distribute, or aerially apply fertilizer and/or ag chemicals.

What are the tax credit limits?

The potential credit amount is 30% of the investment made in facility security. This has a limit of $100,000 per facility up to $2,000,000 annually per company.

What are "qualified chemical security expenditures"?

  • Employee security training and background check
  • Limitation and prevention of access to controls of specified agricultural chemicals stored at a facility
  • Tagging, locking tank valves, and chemical additives to prevent the theft of specified agricultural chemicals or to render such chemicals unfit for illegal use
  • Protection of the perimeter of specified agricultural chemicals
  • Installation of security lighting, cameras, recording equipment and intrusion detection sensors
  • Implementation of measures to increase computer or computer network security
  • Conducting security vulnerability assessments
  • Implementing a site security plan
  • Other measures provided for by regulation

Please do not miss out on the opportunity to help your company maximize their security investment before the credit expires!
The 8931 form for the Agricultural Chemicals Security Credit from the IRS can be found here and if you have any questions please contact, Jeff Sands, ARA Director of Public Policy, at either jeff@aradc.org or 202-595-1705.