,i  #aafth ,,congress  #b;d ,session    
,h4 ,r4 #hgag  ,,in ,,the ,,house ,,of  
,,representatives  ,october #cj1        
#bjbj,mr4 ,smith of ,missouri 7for      
himself1 ,mrs4 ,wagner1 ,mrs4 ,hartzler1
 ,mr4 ,luetkemeyer1 ,mr4 ,graves of     
,missouri1 ,mr4 ,long1 ,mr4 ,johnson of 
,south ,dakota1 ,mr4 ,hagedorn1 and ,mr4
 ,crawford7 introduced the following    
bill2 which was referred to the         
,committee on ,ways and ,means  ,a      
,,bill  ,to amend the ,internal ,revenue
 ,code of #aihf to provide incentives   
for livestock processing facilities4    
#a4 ,short title ,this ,act may be cited
 as the ,feed ,america by ,incentivizing
 ,rural ,meat ,packing ,act or as the   
,,fair ,meat ,packing ,act4  #b4 ,credit
 for livestock processing facilities    
7a7 ,in general ,subpart ,e of part ,,iv
 of subchapter ,a of chapter #a of the  
,internal ,revenue ,code of #aihf is    
amended by inserting after section      
#dh;,c the following new section3       
#dh;,d4 ,livestock processing facilities

 credit  7a7 ,in general ,for purposes  
of section #df1 the livestock processing
 facilities credit for any taxable year 
is an amount equal to #be percent of the
 basis of each livestock processing     
facility property placed in service by  
the taxpayer during such taxable year4  
7b7 ,limitation on credit amount ,the   
credit determined under subsection 7a7  
with respect to any taxpayer for any    
taxable year shall not exceed #bej1jjj4 
7c7 ,exclusion of certain large         
processors ,no credit shall be allowed  
under subsection 7a7 to any taxpayer for
 any taxable year if the gross receipts 
7within the meaning of section #ddh7;c7 
of the ,internal ,revenue ,code of      
#aihf7 of such taxpayer for such taxable
 year exceed #ajj1jjj1jjj4  7d7         
,livestock processing facility property 
,for purposes of this section-- 7#a7 ,in
 general ,the term livestock processing 
facility property means property with   
respect to which depreciation 7or       
amortization in lieu of depreciation7 is

 allowable and which is part of a       
livestock processing facility4  7#b7    
,trade or business requirement ,the term
 livestock processing facility property 
shall not include any property unless   
such property is used in the taxpayer's 
trade or business of processing         
livestock4  7e7 ,other definitions ,for 
purposes of this section-- 7#a7         
,livestock processing facility ,the term
 livestock processing facility means a  
facility which slaughters livestock for 
processing into meat and meat products1 
which participates in a meat and poultry
 inspection program conducted by the    
,department of ,agriculture or the      
,state in which such facility is        
located1 and at which an average of     
fewer than #ejj employees are employed  
on business days during the taxable     
year4 ,such term shall include any      
property used for the intake or storage 
of livestock1 the disposal or management
 of livestock waste1 or the packaging1  
handling1 warehousing1 or storage of    

meat products1 if such property is      
located on the same site as such        
facility4  7#b7 ,livestock ,the term    
livestock means cattle1 sheep1 goats1   
bison1 swine1 and poultry4  7f7 ,special
 rules  7#a7 ,certain progress          
expenditure rules made applicable ,rules
 similar to the rules of subsections    
7c77#d7 and 7d7 of section #df 7as in   
effect on the day before the date of the
 enactment of the ,revenue              
,reconciliation ,act of #aiij7 shall    
apply for purposes of subsection 7a74   
7#b7 ,aggregation rule ,for purposes of 
subsections 7b7 and 7c71 all members of 
the same controlled group of            
corporations 7within the meaning of     
section #bfg7;f77 and all persons under 
common control 7within the meaning of   
section #eb7;b7 but determined by       
treating an interest of more than #ej   
percent as a controlling interest7 shall
 be treated as #a person and the dollar 
limitation under subsection 7b7 shall be
 allocated in such manner as the        

,secretary may provide4  7#c7 ,election 
to not have section apply ,no credit    
shall be determined under subsection 7a7
 with respect to any taxpayer for any   
taxable year if such taxpayer make an   
election under this paragraph 7at such  
time and in such manner as the          
,secretary may provide7 to have such    
subsection not apply for such taxable   
year4  7g7 ,termination ,no credit shall
 be allowed under subsection 7a7 with   
respect to any taxable year beginning   
after ,december #ca1 #bjbe4  4  7b7     
,conforming amendments  7#a7 ,section   
#df of such ,code is amended by striking
 and at the end of paragraph 7#e71 by   
striking the period at the end of       
paragraph 7#f7 and inserting 1 and1 and 
by adding at the end the following new  
paragraph3  7#g7 the livestock          
processing facilities credit4  4  7#b7  
,section #di7;a77#a77;,c7 of such ,code 
is amended by striking and at the end of
 clause 7iv71 by striking the period at 
the end of clause 7v7 and inserting a   

comma1 and by adding at the end the     
following new clause3  7vi7 the basis of
 any livestock processing facility      
property under section #dh;,d4  4  7#c7 
,section #ej7;a77#b77;,e7 of such ,code 
is amended by striking or #dh;,c7b77#b7 
and inserting #dh;,c7b77#b71 or         
#dh;,d7d77#a74  7#d7 ,the table of      
sections for subpart ,e of part ,,iv of 
subchapter ,a of chapter #a of such     
,code is amended by inserting after the 
item relating to section #dh;,c the     
following new item3  ,sec4 #dh;,d4      
,livestock processing facilities credit4
  4  7c7 ,effective date ,the amendments
 made by this section shall apply to    
periods after the date of the enactment 
of this ,act under rules similar to the 
rules of section #dh7m7 of the ,internal
 ,revenue ,code of #aihf 7as in effect  
on the day before the date of the       
enactment of the ,revenue               
,reconciliation ,act of #aiij74  #c4    
,refundable credit for startup and      
organizational expenditures with respect

 to livestock processing facilities  7a7
 ,in general ,subpart ,c of part ,,iv of
 subchapter ,a of chapter #a of the     
,internal ,revenue ,code of #aihf is    
amended by inserting after section      
#cf;,b the following new section3       
#cf;,c4 ,credit for startup and         
organizational expenditures of livestock
 processing facilities  7a7 ,in general 
,there shall be allowed as a credit     
against the tax imposed by this subtitle
 for any taxable year an amount equal to
 #ij percent of the sum of-- 7#a7 the   
qualified livestock processing facility 
start-up expenditures of the taxpayer   
for such taxable year1  7#b7 the        
qualified livestock processing facility 
corporate organizational expenditures of
 the taxpayer for such taxable year1    
plus  7#c7 the qualified livestock      
processing facility partnership         
organizational expenditures of the      
taxpayer for such taxable year4  7b7    
,qualified livestock processing facility
 start-,up expenditures ,for purposes of

 this section1 the term qualified       
livestock processing facility start-up  
expenditures means1 with respect to any 
taxpayer for any taxable year1 the      
amount which would be allowed as a      
deduction under section #aie to such    
taxpayer for such taxable year with     
respect to any trade or business which  
slaughters livestock into meat or meat  
products if-- 7#a7 section              
#aie7;b77#a77;,a77ii7 were applied--    
7,a7 by substituting #aj1jjj for #e1jjj1
 and  7,b7 by substituting #fj1jjj for  
#ej1jjj1 and  7#b7 subsection 7f7 of    
this section did not apply4  7c7        
,qualified livestock processing facility
 corporate organizational expenditures  
,for purposes of this section1 the term 
qualified livestock processing facility 
corporate organizational expenditures   
means1 with respect to any taxable year 
of any corporation substantially all of 
the gross receipts 7within the meaning  
of section #ddh7;c7 of the ,internal    
,revenue ,code of #aihf7 of which are   

reasonably expected to be derived from a
 trade or business which slaughters     
livestock into meat or meat products1   
the amount which would be allowed as a  
deduction under section #bdh to such    
corporation for such taxable year if--  
7#a7 section #bdh7;a77#a77;,b7 were     
applied-- 7,a7 by substituting #aj1jjj  
for #e1jjj1 and  7,b7 by substituting   
#fj1jjj for #ej1jjj1  7#b7 in the case  
of any entity with a single owner that  
is disregarded as an entity separate    
from its owner1 section #bdh were       
applied as if such entity were a        
corporation1 and  7#c7 subsection 7f7 of
 this section did not apply4  7d7       
,qualified livestock processing facility
 partnership organizational expenditures
 ,for purposes of this section1 the term
 qualified livestock processing facility
 partnership organizational expenditures
 means1 with respect to any taxable year
 of any partnership substantially all of
 the gross receipts 7within the meaning 
of section #ddh7;c7 of the ,internal    

,revenue ,code of #aihf7 of which are   
reasonably expected to be derived from a
 trade or business which slaughters     
livestock into meat or meat products1   
the amount which would be allowed as a  
deduction under section #gji with       
respect to such partnership for such    
taxable year if-- 7#a7 section          
#gji7;b77#a77;,a77ii7 were applied--    
7,a7 by substituting #aj1jjj for #e1jjj1
 and  7,b7 by substituting #fj1jjj for  
#ej1jjj1 and  7#b7 subsection 7f7 of    
this section did not apply4  7e7        
,livestock ,for purposes of this        
section1 the term livestock means       
cattle1 elk1 reindeer1 bison1 deer1     
sheep1 goats1 swine1 and poultry4  7f7  
,denial of double benefit ,any deduction
 or credit allowed under this title     
7other than this section7 with respect  
to any qualified livestock processing   
facility start-up expenditures1         
qualified livestock processing facility 
corporate organizational expenditures1  
or qualified livestock processing       

facility partnership organizational     
expenditures shall be reduced by the    
amount of the credit determined under   
this section4  7g7 ,recapture ,if any   
credit is allowed under this section to 
any taxpayer for any taxable year with  
respect to any trade or business of     
processing livestock 7including with    
respect to any entity substantially all 
of the gross receipts of which are with 
respect to the trade or business of     
processing of livestock7 and such trade 
or business ceases to be conducted      
during the #c-taxable-year period       
following the taxable in which such     
credit is so allowed1 the tax imposed   
under this chapter on such taxpayer for 
the taxable year in which such trade or 
business ceases shall be increased by   
the amount of the credit so allowed4    
7h7 ,termination ,no credit shall be    
allowed under subsection 7a7 with       
respect to any taxable year beginning   
after ,december #ca1 #bjbe4  4  7b7     
,conforming amendments  7#a7 ,section   

#fbaa7;b77#d77;,a7 of such ,code is     
amended by inserting #cf;,c1 after      
#cf;,b14  7#b7 ,paragraph 7#b7 of       
section #acbd7;b7 of title #ca1 ,united 
,states ,code1 is amended by inserting  
#cf;,c1 after #cf;,b14  7#c7 ,the table 
of sections for subpart ,c of part ,,iv 
of subchapter ,a of chapter #a of the   
,internal ,revenue ,code of #aihf is    
amended by inserting after the item     
relating to section #cf;,b the following
 new item3  ,sec4 #cf;,c4 ,credit for   
startup and organizational expenditures 
of livestock processing facilities4  4  
7c7 ,effective date ,the amendments made
 by this section shall apply to taxable 
year ending after the date of the       
enactment of this ,act4