Washington, D.C. (Sept. 12, 2013) – The Biotechnology Industry Organization (BIO) today thanked Rep. Bill Pascrell (D-N.J.), Rep. Steve Stockman (R-Texas) and other original co-sponsors for introducing the Qualifying Renewable Chemical Production Tax Credit Act of 2013, which provides renewable chemical producers access to production tax credits currently available for other renewable energy producers. Additional original co-sponsors of the legislation include Reps. Allyson Schwartz (D-Pa.), Linda Sanchez (D-Calif.) and Richard Neal (D-Mass.). The legislation will reduce taxes for U.S. producers of renewable chemicals, helping them to commercialize homegrown technology and build new biorefineries in the United States.
“By leveling the playing field for the biochemical sector, we are strengthening America’s role as the leader in developing this groundbreaking industry,” said Rep. Pascrell. “Creating good jobs right here in America is the best way to bolster our economy, and this legislation does just that while reducing our reliance on foreign oil and ensuring a more sustainable future.”
Rep. Stockman added, “I’m proud to sponsor this effort to reduce the tax burden on innovators and job creators and create a level playing field for employers. These are the kinds of jobs that can rejuvenate rural America and keep jobs at home.”
BIO President & CEO Jim Greenwood stated, “Creating a level playing field in tax policy will help U.S. industrial biotech companies innovate and develop new products. We’re already beginning to see renewable chemical companies put homegrown technologies to work to create high-quality rural jobs and spur economic growth. We thank Representatives Pascrell, Stockman, Sanchez, Schwartz and Neal for supporting innovation and helping U.S. companies compete in a rapidly growing renewable chemicals market.”
Hugh Welsh, President of DSM NA, headquartered in Parsippany, N.J., added, “We are grateful for Congressman Pascrell’s continued leadership and vision on innovation, renewable chemicals and a US manufacturing renaissance as reflected in his sponsorship of the Qualifying Renewable Chemical Production Tax Credit legislation. This legislation will further support employment, economic growth and continue to encourage global companies like DSM to make additional investments in New Jersey and the entire United States.”
Brett Lund, Chief Licensing Officer of Gevo, Inc., said, “The Qualifying Renewable Chemical Production Tax Credit is a significant step toward encouraging the production and use of renewable chemicals. Many products such as Gevo’s renewable isobutanol can be used as a biochemical or a biofuel and it is important that both uses are equally supported. We applaud Representatives Stockman, Pascrell, Sanchez, Schwartz and Neal for their leadership in supporting legislation that will help stimulate the renewable chemicals industry in the United States.”
Mark Schweiker, Senior Vice President of Renmatix, located in King of Prussia, Pa., commented, “There is clear momentum for bioindustry to commercialize cost-competitive pathways to biochemicals. This bill will help leverage a variety of under-utilized, non-food biomass in America for conversion into renewable materials. Stimulating our nascent biochemical market will reinvigorate rural economies and create sustainable jobs.” Renmatix is a cellulosic sugar producer and signed a joint development agreement with forest and bio-products giant UPM to develop biochemicals.
“We have always emphasized the aspects of our growing industry that make it so exciting – the positive impact we can have on the environment as well as our national economy. Legislation such as the Qualifying Renewable Chemical Production Tax Credit Act is a clear affirmation that Verdezyne, along with the many players in our space, are onto something significantly valuable to our country,” said E. William Radany, President and CEO of Verdezyne, Inc.
Tjerk de Ruiter, CEO of LS9, Inc. in South San Francisco, Calif., said, “Few people realize that fossil fuels are used to produce many of the products used every day in the United States and around the world. Passage of the Qualifying Renewable Chemical Production Tax Credit Act would lead to much greater use of renewable chemicals in the manufacture of those products, reducing the negative economic and environmental impacts that come from relying on oil and gas. A production tax credit for renewable chemicals will benefit American businesses and consumers.”
Ross MacLachlan, CEO of Lignol Innovations Inc., in Berwyn, Pa., added, “The potential market for biochemicals from renewable sources is enormous and represents an opportunity to transform the supply chains for businesses world-wide and open new markets and applications for America’s forest and agricultural industries. What is most needed are policies that provide incentives for customers to become early adopters of renewable chemicals and renewable materials. Early adopters who can show market leadership and champion the introduction of new materials into their supply chains will serve as a catalyst to ignite an emerging business with immediate environmental and economic benefits on a major scale. This production tax credit would be a major step toward achieving these goals.”
BIO represents more than 1,100 biotechnology companies, academic institutions, state biotechnology centers and related organizations across the United States and in more than 30 other nations. BIO members are involved in the research and development of innovative healthcare, agricultural, industrial and environmental biotechnology products. BIO also produces the BIO International Convention, the world’s largest gathering of the biotechnology industry, along with industry-leading investor and partnering meetings held around the world. BIO produces BIOtechNOW, an online portal and monthly newsletter chronicling “innovations transforming our world.” Subscribe to BIOtechNOW.
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