Next Round of Renewable Chemicals Production Tax Credit Application Opens February 15

February 12, 2020

For more information contact:

Mark Laurenzo
515.348.6191
mark.laurenzo@iowaeda.com

Next Round of Renewable Chemicals Production Tax Credit Application Opens February 15

February 12, 2020 (Des Moines, Iowa) - The application filing window will open February 15 for the Iowa Renewable Chemicals Production Tax Credit. Applications will be accepted (online only) from February 15 to March 15, 2020, for chemicals produced in 2019.

The application system is available at iowaeda.com/renewablechem. A variety of resources related to the program, including administrative rules, can also be found on this web page. Use the hyperlink in the “How to Apply” section, which takes applicants to the online application. To begin the application process, applicants must select “Sign In”, located in the upper right corner, to create an account to begin the application.

The credit is $0.05 per pound of renewable chemical produced, up to $1 million for startups and $500,000 for established businesses.

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.

“Since the program was created, IEDA has worked with industry to add new innovative renewable chemicals to the list of eligible chemicals, including benzene, toluene, xylene and ethylbenzene. In addition, butanoic acid, hexanoic acid, octanoic acid, pentanoic acid, heptanoic acid, ethlyne glycol and 1,4 butanediol are chemicals now in progress to join the list of eligible chemicals in 2020. This will provide manufacturers a broad range of some of the most valuable building block renewable chemicals to make the next generation of green products in Iowa,” said Debi Durham, director of the Iowa Economic Development Authority and Iowa Finance Authority.

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 to produce renewable chemicals.

If you have questions after reviewing the online resources referenced above, contact Lisa Connell at 515.348.6163 or lisa.connell@iowaeda.com.

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