H.R. 8137 creates two new tax credits to encourage production of renewable materials made from biomass. The first credit provides 10 cents per pound for companies that produce qualified renewable materials—such as biobased chemicals and products created through conversion of biomass—at facilities in the United States, with a $10 million annual cap per facility and a 10-year qualifying period. The second credit offers a 30 percent investment tax credit for companies that purchase equipment and property used to build or upgrade facilities for renewable material production. Both credits apply to materials made from domestically sourced biomass and exclude fuel products, food, and feed items. The credits become available immediately upon enactment, and the Treasury Department must issue implementing regulations within 180 days of the bill's passage.
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