Renewable Chemical Production Tax Credit
Business Programs
Turning Biomass Into Business
Iowa offers the Renewable Chemical Production Tax Credit. The program incentivizes the production of high-value chemicals derived from biomass feedstocks. According to the U.S. Department of Agriculture, the credit represents the “strongest” incentive package for the biobased 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 limit of $1 million for startups
- 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 April 6, 2016 (includes NEW businesses in Iowa and EXISTING businesses that expanded production after April 6, 2016)
- Will not relocate or reduce 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 2023 is February 15 - March 15, 2024.
- During the filing window, the application will be available at govconnect.iowa.gov. Select "Create a Logon" prior to seeing the options to apply for a tax credit.