Iowa Bill Creates Tax Credit For The Production Of Renewable Chemicals

Iowa Senate bill SF 350: the Renewable Chemical Production Tax Credit Program was introduced in March 2015, and is awaiting review in the Ways & Means Committee. If passed, the legislation will allow producers of renewable chemicals in Iowa to claim a five cent per pound tax credit, with a maximum credit of $1 million for businesses operating in Iowa for five years or less, and a maximum credit of $500,000 for businesses operating in Iowa for more than five years. Chemicals must have at least a 50 percent biobased content to qualify as renewable chemicals under the bill, and must also be sold and used for purposes other than food, feed, or fuel.