Renewable Chemical Production Tax Credit
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)
- 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 2020 is February 15 - March 15, 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.