Instructions For Form 8931 - Agricultural Chemicals Security Credit - Department Of Treasury


Form 8931 (10-2008)
General Instructions
businesses under common control (as defined in section
41(f)(1)(B)), are treated as a single taxpayer. As a member,
Section references are to the Internal Revenue Code unless
you must figure your credit using only your proportionate
otherwise noted.
share of the $100,000 facility limit and the $2 million annual
limit giving rise to the group’s credit on lines 4 and 5. Attach
Purpose of Form
a statement showing how your share of the amounts on
these lines was figured, and write “See attached” next to
Use Form 8931 to claim the tax credit for qualified
the entry spaces for lines 4 and 5.
agricultural chemicals security costs paid or incurred by
eligible agricultural businesses. All the costs must be paid
Specific Instructions
or incurred to protect specified agricultural chemicals
at a facility.
Line 1
Enter only costs (as described on each line) to the extent
The credit is part of the general business credit. Your
they were paid or incurred during the tax year after May 22,
deduction for otherwise deductible agricultural chemicals
2008, and before January 1, 2013, to protect specified
security costs is reduced by the amount of the agricultural
agricultural chemicals.
chemicals security credit.
Line 5
If you have more than one facility, the costs are reported
If you have more than three facilities, complete and attach
in columns (a), (b), and (c) as needed.
as many Forms 8931 as you need. Also, attach an
Taxpayers (other than partnerships, S corporations,
additional Form 8931 showing the total for all the facilities
estates, and trusts) whose only source of this credit is from
and enter “Total for all facilities” at the top of the form.
those pass-through entities are not required to complete or
Line 6
file this form. Instead, report this credit directly on line 1v of
Enter the total credit for all facilities. The amount of the
the 2008 Form 3800, General Business Credit.
credit for any taxpayer for any tax year cannot exceed $2
Who Can Claim the Credit
An eligible agricultural business that paid or incurred
Line 9
qualified agricultural chemicals security costs after
Allocate the credit on line 8 between the estate or trust and
May 22, 2008, and before January 1, 2013, may claim the
the beneficiaries in the same proportion as income was
credit. This includes an eligible individual, corporation,
allocated and enter the beneficiaries’ share on line 9.
partnership, S corporation, estate, or trust.
Paperwork Reduction Act Notice. We ask for the
information on this form to carry out the Internal Revenue
Eligible Agricultural Business
laws of the United States. You are required to give us the
information. We need it to ensure that you are complying
An eligible agricultural business is one that:
with these laws and to allow us to figure and collect the
Sells agricultural products, including specified agricultural
right amount of tax.
chemicals, at retail predominantly to farmers and ranchers;
You are not required to provide the information requested
on a form that is subject to the Paperwork Reduction Act
Manufactures, formulates, distributes, or aerially applies
unless the form displays a valid OMB control number.
specified agricultural chemicals.
Books or records relating to a form or its instructions must
Specified Agricultural Chemicals
be retained as long as their contents may become material
in the administration of any Internal Revenue law. Generally,
A specified agricultural chemical is either of the following:
tax returns and return information are confidential, as
1. Fertilizer commonly used in agricultural operations that
required by section 6103.
is listed under any of the following.
The time needed to complete and file this form will vary
Section 302(a)(2) of the Emergency Planning and
depending on individual circumstances. The estimated
Community Right-to-Know Act of 1986.
burden for individual taxpayers filing this form is approved
under OMB control number 1545-2122 and is included in
Section 101 of part 172 of title 49, Code of Federal
the estimates shown in the instructions for their individual
income tax return. The estimated burden for all other
Part 126, 127, or 154 of title 33, Code of Federal
taxpayers who file this form is shown below.
3 hrs., 35 min.
2. Any pesticide (as defined in section 2(u) of the Federal
Learning about the
Insecticide, Fungicide, and Rodenticide Act), including all
law or the form
30 min.
active and inert ingredients, that are customarily used on
Preparing and sending
crops grown for food, feed, or fiber.
the form to the IRS
34 min.
Member of a Controlled Group or Business Under
If you have comments concerning the accuracy of these
Common Control
time estimates or suggestions for making this form simpler,
For purposes of figuring the credit, all members of a
we would be happy to hear from you. See the instructions
controlled group of corporations (as defined in section
for the tax return with which this form is filed.
41(f)(1)(A) and (f)(5)) and all members of a group of


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