To amend the Internal Revenue Code of 1986 to establish tax credits for the production of, and investment in, certain renewable materials.

This bill would create two new federal tax credits for businesses that make products from biomass, such as plant-based chemicals and materials. A production credit would give 10 cents per pound of the biobased carbon portion of qualifying material made at a U.S. facility and sold or used in a business, for up to 10 years, capped at $10 million per facility each year. An investment credit would equal 30 percent of the cost of qualifying equipment placed in service at such facilities. Products used as fuel, used for heat or electricity, or used as food or feed, or made from biomass not grown or produced mainly in the U.S. or its possessions, would not qualify. A facility could claim only one of the two credits, both credits could be transferred to other taxpayers, and the Treasury would write rules with the Department of Agriculture within 180 days.

Full text and official record on Congress.gov

Sponsors

• Michelle Fischbach Republican sponsor
• 12 cosponsors