Form 8931 Agricultural Chemicals Security Credit

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I.R.S. SPECIFICATIONS
TO BE REMOVED BEFORE PRINTING
INSTRUCTIONS TO PRINTERS
FORM 8931, PAGE 1 of 2
MARGINS: TOP 13mm (1⁄ 2 "), CENTER SIDES. PRINTS: HEAD to HEAD
PAPER: WHITE WRITING, SUB. 20.
INK: BLACK
FLAT SIZE: 216mm (81⁄ 2 ") x 279mm (11")
PERFORATE: (NONE)
DO NOT PRINT — DO NOT PRINT — DO NOT PRINT — DO NOT PRINT

8931

Rev. December 2008
Department of the Treasury
Internal Revenue Service

Name shown on return

Action

Date

Signature

O.K. to print
Revised proofs
requested

Agricultural Chemicals
Security Credit

OMB No. 1545-XXXX

2008

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©

Attach to your tax return.
© See instructions.

Attachment
Sequence No.

162

Identifying number

Facility

1
a
b
c
d
e
f
g
h
2

3
4
5

6

Enter on the applicable line below the qualified agricultural
chemicals security expense described. See instructions.
Employee security training and background checks
Limitation and prevention of access to controls of agricultural
chemicals stored
Tagging, locking tank valves, and chemical additives to
prevent theft or to render chemicals unfit for illegal use
Perimeter protection of agricultural chemicals
Installation of security lighting, cameras, recording
equipment, and intrusion detection sensors
Implementation of measures to increase computer or
computer network security
Conducting a security vulnerability assessment
Implementing a site security plan
Total qualified agricultural chemicals security expense. Add
the amounts in column (a), (b), and (c) on line 1a through
1h

(a)

(b)

1a

1b
1c
1d
1e

1f
1g
1h

Enter $100,000 reduced by the
amount of credit claimed for the
facility in the 5 prior years (see
instructions) ..........

2

Multiply the amounts in column (a), (b), and (c) on line 2 by
30%
Maximum credit per facility
Agricultural chemicals security credit. Enter the smaller of line
3 or 4 for each facility. For additional facilities, see
instructions

3
4

$100,000

$100,000

Section references are to the Internal Revenue Code unless
otherwise noted.

Purpose of Form
Use Form 8931 to claim the tax credit for qualified
agricultural chemical security expenses paid or incurred by
eligible agricultural businesses. All expenses shall be for
the purpose of protecting specified agricultural chemicals
at a facility.
The credit is part of the general business credit. Your
deductible expenses are reduced by the portion of
expenses otherwise allowed as a credit.
If you have more than one facility, the expenses are
reported in columns (a), (b), and (c) as may be needed. If
you have more than three facilities, see Four or More
Facilities below.

Who Can Claim the Credit
An eligible agricultural business which paid or incurred
qualified agricultural chemical security expenses after
May 22, 2008 may claim the credit. This would include an
eligible individual, corporation, partnership, S corporation,
estate, or trust.
It can be used by a fiscal year

$100,000

5

Add the amounts for all facilities on line 5. Enter the result, but not more than $2,000,000.
Partnerships and S corporations, report this amount on Schedule K; all others, report this
amount on Form 3800, line 1v

General Instructions

(c)

6

All members of the same controlled group shall be are
treated as a single taxpayer. All trades or businesses
(whether or not incorporated) which are under common
control shall also be treated as a single taxpayer. Rules
similar to the rules of Section 41(f), paragraphs (1) and (2)
shall apply.

Definitions
Eligible Agricultural Business
Eligible agricultural businesses are businesses that: (1) sell
agricultural products, including specified agricultural
chemicals, at retail predominantly to farmers and ranchers;
or (2) manufacture, formulate, distribute, or aerially apply
specified agricultural chemicals.

Qualified Chemical Security Expense
A qualified chemical security expense means, with respect
to any eligible agricultural business, any amount paid or
incurred for the purpose of protecting specified agricultural
chemicals.

by an eligible agricultural business

Specified Agricultural Chemicals
A specified agricultural chemical is either of the following:
1. Fertilizer commonly used in agricultural operations
which is listed under any of the following.

entity
whose
tax see
year
begins
in 2007 and
For Paperwork Reduction
Act Notice,
page
2.
ends in 2008. See the instructions for
Line 6 later.

Cat. No. 37745A

Form

8931

(2008)

is

2
I.R.S. SPECIFICATIONS
TO BE REMOVED BEFORE PRINTING
INSTRUCTIONS TO PRINTERS
FORM 8931, PAGE 2 OF 2
MARGINS; TOP 13mm (1⁄ 2 "), CENTER SIDES. PRINTS: HEAD TO HEAD
PAPER: WHITE WRITING, SUB. 20.
INK: BLACK
FLAT SIZE: 216mm (81⁄ 2 ") x 279mm (11")
PERFORATE: ON FOLD
DO NOT PRINT — DO NOT PRINT — DO NOT PRINT — DO NOT PRINT

Change "Note" to "Line 5" and
place "Total of all facilities" in
quotes

Form 8931 (2008)

● Section 101 of part 172 of title 49, Code of Federal
Regulations.
● Part 126, 127, or 154 of title 33, Code of Federal
Regulations.

2. Any pesticide (as defined in section 2(u) of the Federal
Insecticide, Fungicide, and Rodenticide Act) including all
active and inert ingredients which are used on crops grown
for food, feed, or fiber.

Enter only expenses to the extent they are paid or incurred
for the purpose of protecting specified agricultural
chemicals.

Line 1a. Enter expenses for employee security training and
background checks.
Line 1b. Enter expenses for limitation and prevention of
access to controls of specified agricultural chemicals
stored at the facility.

Line 1c. Enter expenses for tagging, locking tank valves,
and chemical additives to prevent the theft of specified
agricultural chemicals or to render such chemicals unfit for
illegal use.
Line 1d. Enter expenses for protection of the perimeter of
areas where specified agricultural chemicals are stored.

Note. If you have additional facilities (more than three
facilities), complete and attach as many Forms 8931 as you
need. If you have more than three facilities, also attach an
additional Form 8931 showing the total of all the facilities
and write Total of all facilities at the top of the form.
Line 6. Enter the total credit for all facilities. The amount of
the credit for any taxpayer for any taxable year shall not
exceed $2,000,000.
cannot
Paperwork Reduction Act Notice. We ask for the
information on this form to carry out the Internal Revenue
laws of the United States. You are required to give us the
information. We need it to ensure that you are complying
with these laws and to allow us to figure and collect the
right amount of tax.
You are not required to provide the information requested
on a form that is subject to the Paperwork Reduction Act
unless the form displays a valid OMB control number.
Books or records relating to a form or its instructions must
be retained as long as their contents may become material
in the administration of any Internal Revenue law. Generally,
tax returns and return information are confidential, as
required by section 6103.
The time needed to complete and file this form will vary
depending on individual circumstances. The estimated
burden for individual taxpayers filing this form is approved
under OMB control number 1545-XXXX and is included in
the estimates shown in the instructions for their individual
income tax return. The estimated burden for all other
taxpayers who file this form is shown below.

Line 1e. Enter expenses for installation of security lighting,
cameras, recording equipment, and intrusion detection
sensors.

Recordkeeping

XX hrs.

Line 1f. Enter expenses for implementation of measures to
increase computer or computer network security.

Learning about the
law or the form

XX hrs.

Preparing and sending
the form to the IRS

XX hrs.

Line 1g. Enter expenses for conducting a security
vulnerability assessment.
for such facility
Line 1h. Enter expenses for implementing a site security
plan.

4

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● Section 302(a)(2) of the Emergency Planning and
Community Right-to Know Act of 1986.

Specific Instructions

Page

Line 5. The maximum credit for each facility is $100,000.
The maximum is reduced by the credit taken in each year,
so that the credit taken in any future year cannot exceed an
amount equal to $100,000 less the credit taken this year.
Over the 5-year period beginning this year, the total
credit claimed for each facility cannot exceed $100,000.

of the 5 prior tax years.
The credit applies only to
qualified agricultural
chemical security
expenditures paid or
incurred after May 22,
2008.

If you have comments concerning the accuracy of these
time estimates or suggestions for making this form simpler,
we would be happy to hear from you. See the instructions
for the tax return with which this form is filed.

For fiscal year entities whose tax
year begins in 2007 and ends in
2008, with qualified agricultural
chemical security expenditures paid
or incurred after May 22, 2008,
during such tax year, report the
credit on the 2007 Form 3800, line 2.
Write "ACSC" next to line 2.