WASHINGTON, D.C. – Today, U.S. Senators Pete Ricketts (R-NE) and Chris Coons (D-DE) introduced the Renewable Chemicals Act. The bipartisan legislation would provide a targeted, short-term tax credit for qualifying renewable chemicals or an investment tax credit for renewable chemical production facilities. Renewable chemicals are produced from biomass such as corn and soybeans. This would incentivize the development of additional markets for Nebraska farmers. It would create Nebraska jobs in the chemical industry.
“Nebraska is the global leader in value-added agriculture,” said Senator Ricketts. “This bill opens new markets for Nebraska ag. It will bring more ag-driven manufacturing to Nebraska. Bio-based products are common sense. They’re a win for consumers, the environment, and our farmers and ranchers. We aren’t just growing food in Nebraska. We are growing the raw materials for America’s future.”
“Delaware has always been a leader in innovation, especially in chemistry,” said Senator Coons. “I’m excited to introduce this bipartisan bill that will support innovators as they make chemical manufacturing better for people and the planet while helping our state’s economy thrive.”
Key Provisions of the Renewable Chemicals Act:
- Production Tax Credit: A tax credit equal to 15% of the sales price per pound of renewable chemicals produced from biomass.
- Investment Tax Credit: A 30% tax credit for investments in new renewable chemical production facilities.
- Biobased Standards: Eligible chemicals must be at least 95% biobased content and utilize the USDA Certified Biobased Product label.
“AFCC and its member companies thank Senators Coons and Ricketts for sponsoring the bipartisan bill for renewable chemicals, bioplastics, biopolymers and biomaterials which mitigate emissions, create jobs, promotes innovation, strengthens biomanufacturing, and shortens processing steps compared to incumbent technologies,” said Rina Singh, PhD., Executive Vice President of Public Policy at the Alternative Fuels & Chemicals Coalition. “If enacted, the new tax credit for the production of renewable chemicals will allow for a credit up to 15% of the sales price of each pound of renewable chemical or the producer has the option of taking a 30% investment tax credit. This new tax credit will encourage industrial biotechnology companies to make investments and deploy domestic feedstocks.”
“This bipartisan legislation strengthens U.S. manufacturing by supporting domestic renewable chemical production, driving innovation in sustainable chemistry, and bolstering quality jobs nationwide,” said Leticia Goncalves Lourenco, President of Health & Biosciences at International Flavors & Fragrances Inc. “By encouraging investment in advanced biobased technologies and reducing reliance on fossil-based resources, the Renewable Chemicals Act of 2025 fosters collaboration across the bioeconomy and catalyzes advanced manufacturing at home. At IFF, we look forward to continuing our work with customers, policymakers, and communities to accelerate bio-based innovation for the future.”
“Change Chemistry members span the full value chain and many sectors, and they are constantly seeking new sustainable chemistry alternatives at scale in response to growing market demands,” says Joel Tickner, Founder and Strategic Advisor of Change Chemistry. “The Renewable Chemicals Act directly incentivizes the production of renewable chemicals and formalizes a sustainable chemistry definition that can help accelerate the development and production of more sustainable chemical ingredients and formulations.”