Sens. Sherrod Brown, D-Ohio, and Pete Ricketts, R-Neb., in August introduced the Renewable Chemicals Act, a bill that aims to create a tax credit to support the production of biobased chemicals.&nbsp;The legislation, S. 4931, would create a targeted, short-term production tax credit of 15% of the sales price of each pound of renewable chemical produced and sold for its fair market value at retail by U.S. biochemical producers during the taxable year.&nbsp;To be eligible for the tax credit, renewable chemicals must be produced in the U.S. and contain at last 95% biobased content. Chemicals sold for used for the production of any food, feed, fuel or pharmaceutical products would not be eligible to claim the credit.&nbsp;In lieu of the production tax credit, producers could elect to take a 30% investment tax credit for qualified investments in new renewable chemical production facilities. Taxpayers would be prohibited from electing to take both credits.&nbsp;The legislation caps the total value of the credits at $500 million, with a cap of $25 million for individual taxpayers.&nbsp;“Our legislation will ensure that the United States is a global leader in creating the chemicals and bioplastics of the future – and that American workers will be the ones manufacturing them using biomass produced in America,”&nbsp;Brown said.&nbsp;“By spurring investment in the renewable chemical production, we can create jobs in this country while bolstering innovation and American energy independence.”A full copy of the legislation is available on Brown’s <a href="https://www.brown.senate.gov/imo/media/doc/renewable_chemicals_act_bill_text.pdf">website</a>.

2024-08-22 - Brown introduces bill to create tax credit for biobased chemicals (3 publications)

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Sens. Sherrod Brown, D-Ohio, and Pete Ricketts, R-Neb., in August introduced the Renewable Chemicals Act, a bill that aims to create a tax credit to support the production of biobased chemicals. 

Brown introduces bill to create tax credit for biobased chemicals

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