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Iowa Renewable Chemical Tax Credit Program: 5 things to know

April 8, 2016

Iowa Governor Terry Branstad just signed Senate File 2300 creating the “Renewable Chemical Production Tax Credit Program,” and furthering the state’s position as the best location for renewable chemical manufacturing and advanced biorefining operations. Here’s what you need to know about the program:

  1. No other state has a program like this

The program will offer tax credits equal to 5 cents per pound of qualified chemicals produced, and the state will have the authority to grant up to $10 million in tax relief annually.

  1. It’s not for food, feed or fuel

Products eligible under this program must not be primarily used for food, feed or fuel. However, food additives may be eligible. Definitions of what qualifies can be found in the bill, or you can contact us at opportunities@iowaeda.com and we’ll help you find out.

  1. Iowa has the infrastructure and raw materials in place for advanced bioprocessing

Iowa has a network of more than 50 bioprocessing sites and an abundance of biomass that can be used as feedstocks to develop building block chemicals, and ultimately consumer products. In addition, the state’s robust transportation infrastructure provides easy access to national and international markets.

  1. This is a tax credit built on a stable foundation

The legislation creating the Renewable Tax Credit Program passed the Iowa State Senate 46-3 and the House 95-1, indicating its broad support, and demonstrating how businesses in Iowa benefit from fair and consistent government. 

  1. Iowa is a research hub for biobased chemicals

Iowa is home to the National Science Foundation Engineering Research Center for Biorenewable Chemicals led by Iowa State University (ISU), the ISU BioCentury Research Farm and the University of Iowa’s Bioeconomy Institute. Graduates from the state’s universities put skills learned at these institutions into practice in the state’s private companies. Our team at the Iowa Economic Development Authority is available to provide you with assistance.

For more information contact us at opportunities@iowaeda.com, or visit our website page on the Renewable Chemicals Production Tax Credit Program.

 

 

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Iowa Economic Development Authority
200 East Grand Avenue
Des Moines, Iowa 50309
Phone: 1.515.348.6200
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