Form 8931 (Rev. 12-2010)
Page 2
General Instructions
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 chemicals security costs paid or incurred by
eligible agricultural businesses. All the costs must be paid or
incurred to protect specified agricultural chemicals at a
facility.
The credit is part of the general business credit. Your
deduction for otherwise deductible agricultural chemicals
security costs is reduced by the amount of the agricultural
chemicals security credit. The amount of the credit for any
taxpayer for any tax year cannot exceed $2 million.
If you have more than one facility, the costs are reported
in columns (a), (b), and (c) as needed.
Taxpayers (other than partnerships, S corporations,
estates, and trusts) whose only source of this credit is from
those pass-through entities are not required to complete or
file this form. Instead, report this credit directly on Form
3800, General Business Credit.
Who Can Claim the Credit
An eligible agricultural business that paid or incurred
qualified agricultural chemicals security costs after May 22,
2008, and before January 1, 2013, may claim the credit. This
includes an eligible individual, corporation, partnership, S
corporation, estate, or trust.
Definitions
Eligible Agricultural Business
An eligible agricultural business is one that:
• Sells agricultural products, including specified agricultural
chemicals, at retail predominantly to farmers and ranchers;
or
• Manufactures, formulates, distributes, or aerially applies
specified agricultural chemicals.
Specified Agricultural Chemicals
A specified agricultural chemical is either of the following:
1. Fertilizer commonly used in agricultural operations that
is listed under any of the following.
a. Section 302(a)(2) of the Emergency Planning and
Community Right-to-Know Act of 1986.
b. Section 101 of part 172 of title 49, Code of Federal
Regulations.
c. 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, that are customarily used on
crops grown for food, feed, or fiber.
Member of a Controlled Group or Business Under
Common Control
For purposes of figuring the credit, all members of a
controlled group of corporations (as defined in section 41(f)
(5)) and all members of a group of businesses under
common control (as defined in Regulations section 1.52-1 (b)
through (g)), are treated as a single taxpayer. As a member,
figure your credit using only your proportionate share of the
$100,000 facility limit and the $2 million annual limit on the
group’s credit on lines 4 and 5. Attach a statement showing
how your share of the amounts on these lines was figured,
and write “See attached” next to the entry spaces for lines 4
and 5.
Specific Instructions
Line 1
Enter only costs (as described on each line) to the extent
they were paid or incurred during the tax year after May 22,
2008, and before January 1, 2013, to protect specified
agricultural chemicals.
Line 5
If you have more than three facilities, complete and attach
as many Forms 8931 as you need. Also, attach an additional
Form 8931 showing the total for all the facilities and enter
“Total for all facilities” at the top of the form.
Line 6
Enter the total credit for all facilities.
Line 9
Allocate the credit on line 8 between the estate or trust and
the beneficiaries in the same proportion as income was
allocated and enter the beneficiaries’ share on line 9.
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 1545-0074 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.
Recordkeeping . . . . . . . . . . 4 hrs., 32 min.
Learning about the
law or the form . . . . . . . . . . . . 35 min.
Preparing and sending
the form to the IRS . . . . . . . . . . . 42 min.
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.
