New legislation advances tax incentives for producers of renewable chemicals

The Biotechnology Industry Organization (BIO) has thanked Senators Stabenow (D-MI), Coons (D-DE) and Franken (D-MN) for introducing 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 US$0.15/lb 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.

Brent Erickson, Executive Vice President of BIO’s Industrial & Environmental Section, said: “Creating incentives in tax policy will help drive US. 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.” Erickson continued, “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 US. companies to better compete in a rapidly growing global chemicals market.”

Adapted from press release by Francesca Brindle

Read the article online at: https://www.hydrocarbonengineering.com/petrochemicals/12112015/new-tax-incentives-for-renewable-chemicals-1722/