To amend the Internal Revenue Code of 1986 to establish tax credits for the production of, and investment in, certain renewable materials.
Sponsored By: Representative Fischbach, Michelle [R-MN-7]
Introduced
Summary
Creates a production tax credit of $0.10 per pound for qualified renewable materials made in the United States. It would also add a companion investment credit and rules to let credits be transferred or allocated between parties.
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Bill Overview
Analyzed Economic Effects
3 provisions identified: 3 benefits, 0 costs, 0 mixed.
Investment credit for renewable facilities
This bill would create a renewable materials investment tax credit equal to 30% of qualified investment in property placed in service to produce qualified renewable material. The credit would apply to depreciable or amortizable tangible property (generally nonstructural equipment) whose original use begins with the taxpayer and that is part of a qualified facility. The credit would not apply to property for which the production credit was allowed in any year, would be reduced for tax-exempt bond financed property, and would follow progress-expenditure rules for construction; it would apply to property placed in service after the date of enactment and be included among business credits and made eligible for transferability under the amended rules.
Tax credit for renewable producers
This bill would allow businesses that produce qualifying renewable materials at U.S. facilities to claim a nonrefundable production tax credit of $0.10 per pound for material sold to an unrelated person or used in the business during the year. The credit would be capped at $10,000,000 per facility per year and would run during a 10-year credit period that starts on the later of the facility's original placed-in-service date, the placed-in-service date of major changes that enable production, or the date of enactment. "Qualified renewable material" would mean the biobased carbon content of products made from biomass (measured using ASTM D6866) but would exclude fuels for vehicles/boats/aircraft, products used to generate heat or electricity, food or feed, material not substantially made in the U.S. or its possessions, and products coprocessed with non-biomass feedstocks. Facilities that have claimed the companion investment credit in any year would be ineligible, the credit would be reduced for tax-exempt bond financed property, and rules would let the seller allocate the credit to another person by election; the credit would be included in the general business credit computation.
Rules and guidance for claiming credits
This bill would require the Treasury Secretary, in consultation with the Agriculture Secretary, to issue regulations or guidance implementing the production and investment credits within 180 days of enactment. The guidance would explain who qualifies, how to measure biobased carbon content (using ASTM D6866), how elections work, and other rules taxpayers need to claim the credits.
Sponsors & CoSponsors
Sponsor
Fischbach, Michelle [R-MN-7]
MN • R
Cosponsors
Budzinski
IL • D
Sponsored 3/27/2026
Roll Call Votes
No roll call votes available for this bill.
View on Congress.gov