To amend the Internal Revenue Code of 1986 to provide credits for the production of renewable chemicals and investments in renewable chemical production facilities, and for other purposes.
About This Bill
Committee
Latest Action · November 30, 2023
Referred to the House Committee on Ways and Means.
The Renewable Chemicals Act of 2023 creates two new tax credits to encourage domestic production of chemicals made from renewable biomass rather than petroleum. Companies that produce qualifying renewable chemicals would receive a 15 percent credit on sales, while those that invest in new facilities to manufacture these chemicals would receive a 30 percent investment tax credit. The bill defines renewable chemicals as products that are at least 95 percent biobased, produced in the United States, approved by the USDA, and used for non-food, non-fuel purposes. A total of $500 million in credits would be available under the program, with individual companies limited to $125 million each, and the Treasury Department would select recipients based on job creation, reduced dependence on fossil fuels, technological innovation, and commercial viability. The credits would be available for five years from the date of enactment, after which the program would expire.
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