The Biotechnology Industry Organization (BIO) today announced that Senators Stabenow (D-MI), Coons (D-DE) and Franken (D-MN) has introduced S. 2271, the Renewable Chemicals Act of 2015, a bill to amend the Internal Revenue Code of 1986 to provide credits for the production of renewable chemicals and investments in renewable chemical production facilities.
S. 2271 would create a targeted, short-term tax credit of 15 cents per pound for production of eligible renewable chemicals from biomass feedstock. In lieu of the production tax credit, producers could elect to take a 30% investment tax credit for qualified investments for new renewable chemical production facilities. The companion bill in the House is H.R.3390.
“Creating incentives in tax policy will help drive U.S. industrial biotech companies to continue to innovate and develop new renewable products in the chemical space. Incentives that support renewable chemicals will promote enhanced innovation in the chemical industry, the construction of next generation integrated biorefineries while creating new jobs and enhancing environmental benefits. -Brent Erickson, Executive Vice President of BIO’s Industrial & Environmental Section.
“We thank Senator Stabenow for her leadership in support of initiatives that help grow the bio-based economy and boost the agriculture and manufacturing sectors in America. This legislation will allow U.S. companies to better compete in a rapidly growing global chemicals market.”