Renewable Chemicals Act of 2026
Sponsored By: Senator Sen. Ricketts, Pete [R-NE]
Introduced
Summary
Would create tax credits for U.S. renewable chemical production. The bill would set up two linked incentives: a production credit for qualifying renewable chemicals and a 30% investment credit for facilities that make them.
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Bill Overview
Analyzed Economic Effects
3 provisions identified: 0 benefits, 0 costs, 3 mixed.
Investment tax credit for production facilities
If enacted, taxpayers placing a renewable chemical production facility in service would be able to claim a 30% investment tax credit on eligible equipment (tangible personal property, not buildings). Taxpayers must make an irrevocable election to apply this credit to a facility, and if they do they could not claim the 15% production credit for chemicals produced at that facility. The credit would be limited to the dollar amount the Secretary allocates and facilities generally must be placed in service within six years after enactment. The bill would also let these credits offset the alternative minimum tax and treat the production credit as part of the general business credit.
National allocation program and caps
If enacted, the Secretary of the Treasury would have 180 days to set up a national program that allocates all investment and production credit amounts. The total pool of allocable credits would be $500 million, and no single taxpayer could receive more than $25 million (related entities treated as one taxpayer). The Secretary would consider selection criteria like jobs created, reduced reliance on imports or fossil feedstocks, lifecycle greenhouse‑gas reductions, technological innovation, and advancement of sustainable chemistry. The Secretary must publish who gets each allocation, review allocations within six years and may reallocate unused credits, and may not allocate credits for taxable years beginning more than five years after enactment.
Production tax credit for renewable chemicals
If enacted, businesses that make qualifying renewable chemicals would be able to claim a production tax credit equal to 15% of the sales price per pound. The credit would be reduced by the chemical's non‑biobased share and biobased content would be measured by ASTM D6866 testing. Only chemicals made in the U.S., approved for the USDA Certified Biobased Product label, not used for food, feed, fuel, or medicines, and classified as chemical intermediates would qualify. The credit for a chemical in any year would be limited to the dollar amount the Secretary allocates to that taxpayer, and allocations could not be made for taxable years beginning more than five years after enactment.
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Sponsors & CoSponsors
Sponsor
Sen. Ricketts, Pete [R-NE]
NE • R
Cosponsors
Sen. Coons, Christopher A. [D-DE]
DE • D
Sponsored 1/14/2026
Roll Call Votes
No roll call votes available for this bill.
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