House Bill Seeks Tax Credit for Chemicals Made From Renewable Feedstocks

Legislation that would provide a tax credit for chemicals made from renewable biomass was introduced April 27 by Reps. Bill Pascrell Jr. (D-N.J.) and Brian Bilbray (R-Calif.).

The Qualifying Renewable Chemical Production Tax Credit Act of 2012 (H.R. 4953) would provide a tax credit of 15 cents per pound of chemical produced from eligible biomass, which would include corn, soybeans, and algae.

The tax credit would be in effect for five years or until it has provided $500 million of credit.

Chemicals qualifying for the credit would have to have at least 25 percent biobased content.