To amend the Internal Revenue Code of 1986 to establish tax credits for the production of, and investment in, certain renewable materials.
Renewable Materials: New Tax Credits for Biobased Products
This bill is currently in the early stages of the legislative process and is being reviewed by the House Committee on Ways and Means. No further actions or hearings have been scheduled at this time. The bill is considered active but is not moving forward quickly.
Legislative Progress
While the bill has support from both parties, most standalone tax credit bills struggle to pass unless they are added to a much larger year-end spending or tax package.
Key Points
- This bill creates two new tax credits to help companies make products from renewable biomass instead of fossil fuels. One credit pays 10 cents for every pound of biobased material produced, while the other covers 30 percent of the cost of building or upgrading production facilities.
- The credits apply to biobased chemicals and materials but specifically exclude products used for food, animal feed, or fuel. To qualify, the materials must be made in the United States or its territories using biological or chemical conversion processes.
- Individual factories can receive up to $10 million per year from the production credit for a 10-year period. Companies must choose between the production credit and the investment credit, as they cannot claim both for the same facility.
- By encouraging the use of biomass, the policy aims to support American farmers and manufacturers while reducing reliance on traditional petroleum-based products. The Treasury Department and Department of Agriculture would work together to set the final rules for these credits.
Impact Analysis
Govbase has not yet run an impact analysis on this legislation.
Milestones
Referred to the House Committee on Ways and Means.
Introduced in House
The bill was officially filed and given a number. It now enters the legislative queue.
Votes
No votes have been recorded for this legislation yet.
News
No related news coverage found for this legislation yet.
Source Information
Document Type
Congressional Bill
Official Title
To amend the Internal Revenue Code of 1986 to establish tax credits for the production of, and investment in, certain renewable materials.
Data Sources
Sponsor
Cosponsors
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