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Tax Credits for Renewable Chemical Production and Manufacturing Facility Investments.

This law introduces new tax credits for companies that produce chemicals derived from renewable biomass instead of fossil fuels, and for those investing in new manufacturing facilities for these biobased chemicals in the U.S. The goal is to boost sustainable production, create jobs, and reduce reliance on petroleum. The total amount of allocated credits nationwide is capped at $500 million.
Key points
Companies can receive a production tax credit equal to 15% of the sales price per pound of qualifying renewable chemicals (at least 95% biobased content).
Alternatively, companies can claim a 30% investment tax credit for building new facilities dedicated to producing these renewable chemicals.
Credit allocation is competitive, prioritizing projects based on job creation, technological innovation, energy efficiency, and reduced dependence on imported or fossil feedstocks.
The program for allocating these tax credits is set to terminate five years after the law's enactment.
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Additional Information
Print number: 118_S_4931
Sponsor: Sen. Brown, Sherrod [D-OH]
Process start date: 2024-08-01
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Source data: api.congress.gov
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OFFICIAL LEGAL TITLE

Renewable Chemicals Act of 2024

FREQUENTLY ASKED QUESTIONS

What is the official ID of this bill?

The official print number for this legislation is 118_S_4931.

Which chamber initiated this legislation?

This legislation was initiated in the Senate.

When did the legislative process begin?

The process officially started on 2024-08-01.

What are the main provisions?

Key points include:

  • Companies can receive a production tax credit equal to 15% of the sales price per pound of qualifying renewable chemicals (at least 95% biobased content).
  • Alternatively, companies can claim a 30% investment tax credit for building new facilities dedicated to producing these renewable chemicals.
  • Credit allocation is competitive, prioritizing projects based on job creation, technological innovation, energy efficiency, and reduced dependence on imported or fossil feedstocks.
  • The program for allocating these tax credits is set to terminate five years after the law's enactment.
What is the specific legal status?

The current status is Expired.

Where can I read the full text of this legislation?

The full official text is available at: View full text

Who is the primary sponsor?

The primary sponsor is Sen. Brown, Sherrod [D-OH].

What is the latest detailed status?

The latest detailed status is: Introduced in Senate

Is this summary verified?

Yes. This content was analyzed by AI and verified by the Lustra Judge System on 2025-12-26.

CATEGORIES

Taxes Environment Economy