Renewable Chemical Production Tax Credit
Business Programs
Turning Biomass Into Business
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)
Who Qualifies?
- Companies physically located in Iowa
- Operated for profit and under single management
- Not an entity providing professional services, health care services, or medical treatments or a retail operation
- Organized, expanded or located in Iowa on or after July 1, 2016 (includes NEW businesses in Iowa and EXISTING businesses that expanded production after July 1, 2016)
- Will not be relocating or reducing operations in Iowa
- In compliance with all agreements entered into under this program or other programs administered by IEDA (if any)
How Do I Apply?
- The application period for chemicals produced in 2019 has passed. The application period for 2020 will be announced in early 2021
- During the filing window, the application will be available at https://rcp-taxcredit.iowa.gov. Select sign in, which is located in the upper right corner, to create an account to begin the application.