Brown, Ricketts Introduce Legislation to Advance American Production of Renewable Chemicals

WASHINGTON, DC - U.S. Senators Sherrod Brown (D-OH) and Pete Ricketts (R-NE) introduced bipartisan legislation to advance themanufacturing of renewable biochemicals from domestic biomass in the United States by creating a tax credit for the production of these chemicals by American companies. The legislation would help to build new markets for domestically produced biomass, advance American energy independence and create American jobs in the chemical industry through a tax credit for either the production of renewable chemicals or investment in renewable chemical production facilities.

"Our legislation will ensure that the United States is a global leader in creating the chemicals and bioplastics of the future - and that American workers will be the ones manufacturing them using biomass produced in America," said Brown. "By spurring investment in the renewable chemical production, we can create jobs in this country while bolstering innovation and American energy independence."

Industrial biotechnology is enabling the production of a new generation of renewable chemicals, bioplastics, and biobased products produced from biomass. The Renewable Chemicals Act would ensure that the United States is a global leader in this industry - while creating jobs for American workers in the chemicals and plastics industry.

"AFCC and its member companies thank Senators Brown and Ricketts for sponsoring the bipartisan bill for renewable chemicals, bioplastics, biopolymers and biomaterials which mitigate emissions, create jobs, promote innovation, strengthen biomanufacturing, and shorten processing steps compared to incumbent technologies," said Rina Singh, PhD., Executive Vice President for Policy at the Alternative Fuels and Chemicals Coalition. "If enacted, the new tax credit for the production of renewable chemicals will allow for a credit up to 15% of the sales price of each pound of renewable chemical or the producer has the option of taking a 30% investment tax credit. This new tax credit will encourage industrial biotechnology companies to make investments and deploy domestic feedstocks."

"Investing in renewable chemicals is investing in our nation's economic security. The Renewable ChemicalsAct will help us develop domestic production facilities that reduce our dependency on foreign oil and ensure a stable supply of essential chemicals and products. Our biodegradable lubricants are a testament to the power of our nation's renewable resources," said Benjamin Garmier, Vice President of Renewable Lubricants, Inc. in Hartville, Ohio.

The Renewable Chemicals Act would:

• Create a targeted, short-term production tax credit of 15 percent of the sales price of each pound of a renewable chemical produced and sold for its fair market value at retail by American biochemical producers during the taxable year.

• In lieu of the production tax credit, producers could elect to take a 30% investment tax credit for qualified investments in new renewable chemical production facilities. Taxpayers are prohibited from electing to take both credits.

Full text of the legislation can be found HERE.

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