Clearing the path for commercialization of homegrown renewable chemical technology can enhance energy security and create well-paying new opportunities in the United States. The Biotechnology Industry Organization (BIO) today thanked Reps. Bill Pascrell (D-N.J.) and Brian Bilbray (R-Calif.) for introducing legislation that reduces taxes for U.S. producers of renewable chemicals building new biorefineries.
Brent Erickson, executive vice president of BIO’s Industrial & Environmental Section, said, “Industrial biotechnology developed here in the United States enables production of chemicals used in common household products from renewable biomass instead of oil. This technology can reduce reliance on foreign oil and contribute to a cleaner and healthier environment. It can also revitalize U.S. chemical and product manufacturing, generate tens of thousands of new employment opportunities, boost economic growth and improve our balance of trade – if the technology is commercialized here in the United States. This tax break for U.S. producers of renewable chemicals can ensure that the United States maintains its competitiveness in chemical production by commercializing homegrown innovation.
“There are a number of industrial biotechnology companies here in the United States seeking opportunities to produce renewable chemicals at commercial-scale. These chemicals are used in everyday products, such as car tires, clothing and shoes, and personal care items. Clearing the path for these companies to build biorefineries in the United States ensures that our economy grows.”
“Many people are not aware that chemical production represents a significant portion of our dependence on petroleum,” said Dr. William Radany, CEO of Verdezyne, “The development of technologies to produce these chemicals from renewable sources is every bit as important as it is for energy and we are encouraged that Congressmen Bilbray and Pascrell have recognized this.”
The Renewable Chemicals Tax Parity Act of 2012 provides a tax credit of $0.15 per pound of qualifying renewable chemical, with a limit of $25 million per taxpayer per year. The tax credit would be in effect for five years or until it reaches a cap of $500 million.