Renewable Chemical Production Tax Credit
Forecasted
The Renewable Chemical Production Tax Credit supports Iowa businesses in developing innovative processes for producing high-value chemicals from renewable biomass, advancing sustainable chemical manufacturing.
Funder: Iowa Economic Development Authority
Due Dates (Anticipated): March 2027 (Application deadline, projected)
Funding Amounts: State income tax credit; typically up to $1 million per company per year; calculated per pound of eligible renewable chemicals produced.
Summary: State tax credit program incentivizing Iowa-based businesses to produce high-value renewable chemicals from biomass feedstocks.
Key Information: Not a cash grant; benefits are realized through Iowa tax filings based on actual production.
Description
The Renewable Chemical Production Tax Credit, administered by the Iowa Economic Development Authority (IEDA), is designed to stimulate the production of high-value chemicals derived from renewable biomass at Iowa facilities. This initiative aims to advance Iowa’s bioscience and value-added agriculture sectors by encouraging private investment in bioprocessing and biomanufacturing. The program provides a state income tax credit, based on the annual pounds of qualifying renewable chemicals produced, to eligible businesses operating within Iowa. The credit supports innovation, job creation, and sustainable agricultural practices, while leveraging Iowa’s agricultural resources for chemical manufacturing.
