Reps. Bill Pascrell Jr. (D-NJ) and Brian Fitzpatrick (R-PA) introduced legislation yesterday that would create a tax credit for the production of renewable chemicals—providing a much-needed boost for the environment and the bioeconomy.
The Renewable Chemicals Act would “create an allocated tax credit for production of qualifying renewable chemicals from biomass or investment in production facilities,” according to the press release.
How it works: The legislation “would create production tax credit based on 15% of the sales price of each pound of renewable chemical produced or 30% investment tax credit for renewable chemical production facilities,” explained the Alternative Fuels & Chemicals Coalition (AFCC).
This will have many benefits for the environment—from reducing greenhouse gas emissions and air pollution associated with fossil fuel-based manufacturing, to reducing waste by replacing traditional plastics and chemicals with biobased alternatives.
It will also boost the economy, accelerating commercialization of biobased products—which consumers want—and emphasizing “the need for job creation in these growing industries,” said Rep. Pascrell.
And it will build resilience. By boosting the bioeconomy now, we’ll be able to better respond to challenges in the not-so-distant future—like climate change, economic turmoil, even pandemics.
Stephanie’s Sage Words: 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. BIO and its members thank Reps. 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. – Stephanie Batchelor, Vice President of BIO’s Industrial and Environmental Section
Read more about why a resilient future starts with the biobased economy.
Learn more about biobased manufacturing and bioplastics.
More Agriculture and Environment News:
Rolling Stone: How climate change is ushering in a new pandemic era
“A warming world is expanding the range of deadly diseases and risking an explosion of new zoonotic pathogens from the likes of bats, mosquitoes, and ticks.”
Des Moines Register: Former Iowa Gov. Tom Vilsack up for agriculture secretary—again
"Tom Vilsack is set for another stint as U.S. secretary of agriculture, according to news organizations in Washington, citing people familiar with the decision."
