Bill > S3632

This bill, titled the "Renewable Chemicals Act of 2026," amends the Internal Revenue Code of 1986 to incentivize the production of renewable chemicals and the construction of facilities to produce them. It introduces two main tax credits: a production credit for renewable chemicals, which is 15% of the sales price reduced by non-biobased content, and an investment credit for renewable chemical production facilities, which is 30% of the cost of eligible property. A "renewable chemical" is defined as a chemical produced in the U.S. from U.S.-sourced renewable biomass, with at least 95% biobased content, not used for food, feed, fuel, or pharmaceuticals, and approved by the USDA Certified Biobased Product label. The bill also establishes a national limitation on these credits, with an aggregate cap of $500 million and a per-taxpayer cap of $25 million, and outlines criteria for allocating these credits, such as job creation, reduced reliance on fossil fuels, and technological innovation. The credits are intended to encourage sustainable chemistry and reduce dependence on non-renewable resources.

Budget and Finance

https://www.congress.gov/bill/119th-congress/senate-bill/3632/all-info