The Renewable Chemicals Act of 2026 creates two new federal tax credits to encourage domestic production of renewable chemicals—those made from plant-based materials rather than petroleum. Specifically, it offers a 15 percent production credit for each pound of qualifying renewable chemical sold, and a 30 percent investment credit for companies that build new facilities to produce these chemicals. To qualify, chemicals must be at least 95 percent plant-based, produced in the United States, and certified by the U.S. Department of Agriculture. The legislation allocates $500 million total in credits with a $25 million cap per company, with the Treasury Department selecting recipients based on job creation, energy efficiency, technological innovation, and market viability. Both credits expire five years after the law is enacted, and companies must choose between the production credit or the investment credit—they cannot claim both for the same facility.
Take Action
Your position
Add a comment
to comment on this bill.
Annotate the text
Highlight any passage on the Summary or Full Text tab to attach a note. Annotations appear on the Annotations tab.