Michigan Senator Debbie Stabenow Introduces Legislation That Advances Tax Incentives For Producers Of Renewable Chemicals

WASHINGTON--(BUSINESS WIRE)--The Biotechnology Industry Organization (BIO) today thanked Senators Stabenow (D-MI), Coons (D-DE) and Franken (D-MN) for introducing S. 2271, the Renewable Chemicals Act of 2015, a bill to amend the Internal Revenue Code of 1986 to provide credits for the production of renewable chemicals and investments in renewable chemical production facilities.

“We thank Senator Stabenow for her leadership in support of initiatives that help grow the bio-based economy and boost the agriculture and manufacturing sectors in America. This legislation will allow U.S. companies to better compete in a rapidly growing global chemicals market.”

S. 2271 would create a targeted, short-term tax credit of 15 cents per pound for production of eligible renewable chemicals from biomass feedstock. In lieu of the production tax credit, producers could elect to take a 30% investment tax credit for qualified investments for new renewable chemical production facilities. The companion bill in the House is H.R.3390.

Brent Erickson, Executive Vice President of BIO’s Industrial & Environmental Section, said:

“Creating incentives in tax policy will help drive U.S. industrial biotech companies to continue to innovate and develop new renewable products in the chemical space. Incentives that support renewable chemicals will promote enhanced innovation in the chemical industry, the construction of next generation integrated biorefineries while creating new jobs and enhancing environmental benefits.

“We thank Senator Stabenow for her leadership in support of initiatives that help grow the bio-based economy and boost the agriculture and manufacturing sectors in America. This legislation will allow U.S. companies to better compete in a rapidly growing global chemicals market.”

About BIO

BIO is the world’s largest trade association representing biotechnology companies, academic institutions, state biotechnology centers and related organizations across the United States and in more than 30 other nations. BIO members are involved in the research and development of innovative healthcare, agricultural, industrial and environmental biotechnology products. BIO also produces the BIO International Convention, the world’s largest gathering of the biotechnology industry, along with industry-leading investor and partnering meetings held around the world. BIOtechNOW is BIO’s blog chronicling “innovations transforming our world” and the BIO Newsletter is the organization’s bi-weekly email newsletter. Subscribe to the BIO Newsletter.

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