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Washington, D.C. – Congresswoman Michelle Fischbach and Congresswoman Nikki Budzinski introduced the Biobased Materials Investment and Production Act to strengthen the domestic supply chain and create new markets for American farmers by incentivizing the production of biobased chemicals and materials.
Fischbach says that while the U.S. has made significant strides in biofuels, many other everyday products, from plastics to industrial chemicals, remain dependent on foreign petroleum. The legislation aims to bridge that gap by providing tax incentives for companies that use American-grown biomass to create renewable materials.
“This legislation is a crucial step in supporting our farmers and manufacturers,” said Rep. Fischbach. “By providing tax incentives, we can drive investment into rural communities, reduce our reliance on petroleum-based products, and strengthen our national supply chain using American-grown resources.”
The Biobased Materials Investment and Production Act allows taxpayers to choose the incentive that best fits their business model:
- Production Support: A tax credit of $0.10 per pound for renewable materials produced and sold, up to $10 million a year, or
- Investment Support: A 30% investment tax credit to help offset the capital costs of constructing or retrofitting manufacturing plants.
Fischbach says this legislation ensures that American businesses have the support they need to lead the world in renewable material production.
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