- <img src="http://www.biomassmagazine.com/uploads/posts/web/2020/12/resize/Pascrell2_16080767828186-300×300-noup.jpg" title="Rep. Bill Pascrell Jr., D-N.J.
Reps. Bill Pascrell Jr., D-N.J., and Mikie Sherrill, D-N.J., on Dec. 4 introduced the Renewable Chemicals Act, which aims to create an allocated tax credit to support the production of biobased chemicals or support investment in production facilities that produce renewable chemicals.
The bill would establish a production tax credit for renewable chemicals equal to 15 percent of the sales price of each pound of renewable chemical produced by the taxpayer or for the taxpayer by a contract manufacturer and sold for fair market value. The credit would be reduced for chemicals do not have 100 percent biobased content. Eligible renewable chemicals must be produced in the U.S. using renewable biomass and have at least 95 percent biobased content. Chemicals sold or used for the production of food, feed, fuel or pharmaceuticals would not be eligible. Chemical intermediates, however, would be considered eligible.
The legislation would also establish an investment credit for renewable chemical production facilities equal to 30 percent of the basis of any eligible property that is part of a renewable chemical production facility placed in service by the taxpayer during a particular taxable year. Eligible facilities include those that are originally placed into service following the enactment of the bill and before ethe first tax of the taxable year that begins six years after the bill in enacted.
According to Pascrell and Fitzpatrick, the bill would accelerate commercialization of renewable chemicals and biobased products.
“It is imperative that America leads the world in combatting climate change and reducing dependence on fossil fuels. Our bipartisan legislation today will help boost our production of renewable chemicals and clean energy, and decrease our dependence on the fossil fuel industry,” Pascrell said. “Importantly, our bill emphasizes the need for job creation in these growing industries to ensure that American workers have the opportunities they deserve. Our children and our grandchildren deserve to inherit a world clean of fossil fuels and dirty energy sources. We have the means to make that goal a reality and it starts with this bill.”
“Legislative action taken, or not taken, by this Congress on this issue of climate change will be felt for generations,” Fitzpatrick said. “We need to continue to work towards building an economy that is supported by renewable energy, and tax credits to boost innovation and job creation in the production of renewable chemicals and biobased products is a crucial piece to our future economic success.”
“We would like to thank Congressman Pascrell’s continued leadership and vision on revitalizing domestic biobased manufacturing for renewable chemicals which will build a resilient biobased economy as reflected in his sponsorship of the Renewable Chemicals Act of 2020,” said Hugh Welsh, president of DSM North America, headquartered in Parsippany, New Jersey. “This legislation is climate smart, will support employment, grow the economy, and at the same time will encourage global companies like DSM to make additional investments in New Jersey and the entire United States.”
“Special thanks to Rep. Bill Pascrell and Rep. Brian Fitzpatrick for introducing the bipartisan Renewable Chemicals Act of 2020,” said Rina Singh, executive vice president of Alternative Fuels & Chemicals Coalition. “The legislation, if enacted, would create production tax credit based on 15 percent of the sales price of each pound of renewable chemical produced or 30% investment tax credit for renewable chemical production facilities. This bill encourages innovation, job creation, environmental benefits, and a resilient biobased economy for U.S.”
“To truly build a 21st century bioeconomy that works to reduce greenhouse gas emissions and limit waste, investments in the development of renewable chemicals will be critical,” said Stephanie Batchelor, vice president of BIO’s Industrial and Environmental Section. “BIO and its members thank Representatives Pascrell and Fitzpatrick for supporting the sector as it provides solutions to build greener supply chains through this much-needed tax credit. Renewable chemical breakthroughs—such as the development of bioplastics—will not only help protect the planet but will also revitalize domestic manufacturing, creating new jobs and opportunities for economic growth.”
A full copy of the bill can be downloaded from Pascrell’s website.