The Internal Revenue Service finalized Form 8931, the Agricultural Chemicals Security Credit (ACSC) earlier this week. The form allows eligible agricultural businesses to claim a new general business credit, the Agricultural Chemicals Security Credit. Eligible agricultural businesses are businesses that:
- Sell retail agricultural products (including specified agricultural chemicals) predominantly to farmers and ranchers.
- Manufacture, formulate, distribute, or aerially apply specified agricultural chemicals.
Eligible agricultural businesses will claim the credit for qualified chemical security expenses on new Form 8931, ACSC. Any amount paid or incurred after May 22, 2008 by an eligible agricultural business for the purpose of protecting specified agricultural chemicals qualifies as a chemical security expense. ACSC is a new general business credit; therefore it must be claimed on the General Business Credit (GBC), Form 3800, as well. The 2008 GBC form will be finalized by the end of 2008. ARA will continue to work closely with the IRS regarding the tax credit. For a copy of the Ag chemical security form click here.
With the enactment of the 2008 Farm Bill (P.L. 110-234) on May 22, an ARA-initiated chemical security tax credit for agricultural retailers, distributors and other eligible agribusinesses has been implemented. This credit helps offset increased security costs incurred by ag retailers and distributors as a result of the federal government's regulations and efforts to safeguard agricultural chemicals from the threat of potential terrorists, drug dealers or other criminals.
If you have further questions on the form, please visit www.irs.gov or contact ARA at (202) 457-0825 or e-mail Jon@aradc.org.