On March 18, 2020, the governor of Maine signed a legislation that promotes the production of renewable products in the state of Maine. This legislation, which offers an 8 cents per pound tax credit for the production of renewable chemicals and reinstates a latent biofuels tax credit at 5 cents per gallon, will reportedly help Maine compete for a market share in the growing global bioeconomy.
This legislation will reportedly accelerate the growth of Maine’s emerging biobased industry, which manufactures climate-friendly products from sustainably sourced Maine biomass, and will bring jobs and economic prosperity back to Maine’s rural communities.
With the signing of LD 1698, Maine became the third state in the country to enact a production tax credit for renewable chemicals, after Iowa and Minnesota, both of which promote corn to replace oil and gas.
This legislation is directly in line with the 10-year Strategic Economic Development Plan released by the state, which outlines biobased products as a key opportunity to create jobs, increase investment, and lower the state’s carbon emissions.
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