Renewable Chemicals Productions Tax Credit
Iowa offers the first in the nation Renewable Chemicals Production Tax Credit. The program incentivizes the production of 30 high-value chemicals derived from biomass feedstocks. According to the U.S. Department of Agriculture, the credit represents the “strongest” incentive package for the bio-based chemical industry.
Iowa developed the program to capitalize on its resources and infrastructure and to capture the renewable chemical manufacturing industry; it addresses the unique opportunity to advance Iowa’s economy by focusing on the development of biomass as feedstocks for the production of renewable chemicals.
- Annual limits of $1 million for startups and $500,000 for established businesses
- Incentivizes production based on weight ($0.05 per pound produced)
How to Apply
- The application period for chemicals produced in 2021 is February 15—March 15, 2022.
- During the filing window, the application will be available at Renewable Chemical Production Tax Credit filing page. Select sign in, located in the upper right corner, to create an account to begin the application.
Category: State Incentives
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