On January 14, 2026, Senators Pete Ricketts (R-NE) and Chris Coons (D-DE) introduced the Renewable Chemicals Act (S. 3632). According to Ricketts’s January 14, 2026, press release, the bipartisan legislation “would provide a targeted, short-term tax credit for qualifying renewable chemicals or an investment tax credit for renewable chemical production facilities.” The press release notes that renewable chemicals are produced from biomass such as corn and soybeans and states that this “would incentivize the development of additional markets for Nebraska farmers.” Key provisions of the bill include:
- Production Tax Credit: A tax credit equal to 15 percent of the sales price per pound of renewable chemicals produced from biomass;
- Investment Tax Credit: A 30 percent tax credit for investments in new renewable chemical production facilities; and
- Biobased Standards: Eligible chemicals must be at least 95 percent biobased content and use the U.S. Department of Agriculture (USDA) Certified Biobased Product label.
The bill was referred to the Senate Committee on Finance.
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