BIO Applauds Iowa Senate Passage of Renewable Chemical Tax Credit

The Biotechnology Innovation Organization (BIO) today applauded Iowa’s Senate for approving a new five-year production tax credit for renewable chemicals and helping to drive innovation in this new sector. Renewable chemicals will be defined in Iowa’s tax code as having at least 50 percent biobased content and not being used as food, feed or fuel. The value of the tax credit is limited to $105 million over five years. Identical legislation was approved yesterday by Iowa’s House Ways and Means Committee.

Brent Erickson, Executive Vice President of BIO’s Industrial & Environmental Section, states, “Renewable chemicals help protect the environment and create new jobs. Iowa’s new tax credit will encourage biotechnology and renewable chemical companies to make investments and deploy innovative homegrown technology in Iowa. BIO will continue to work with the Iowa legislature, other states and the federal government to level the playing field in economic development incentives for renewable chemical and biobased manufacturing technologies.”

Joe Hrdlicka, Executive Director of the Iowa Biotechnology Association (IowaBio), added, “Iowa is securing a leadership position in building a biobased economy, creating new economic opportunities for farmers and manufacturers, and generating well-paying jobs. We thank Gov. Terry Branstad and Director of the Iowa Economic Development Authority Debi Durham for championing this policy.”