,,ii #aadth ,,congress #ast ,session ,s4 #bbga ,,in ,,the ,,senate ,,of ,,the ,,united ,,states ,november #aj1 #bjae,ms4 ,stabenow 7for herself1 ,mr4 ,franken1 and ,mr4 ,coons7 introduced the following bill2 which was read twice and referred to the ,committee on ,finance ,a ,,bill ,to amend the ,internal ,revenue ,code of #aihf to provide credits for the production of renewable chemicals and investments in renewable chemical production facilities1 and for other purposes4 #a4 ,short title ,this ,act may be cited as the ,renewable ,chemicals ,act of #bjae4 #b4 ,credits for production of renewable chemicals and investments in renewable chemical production facilities 7a7 ,production of renewable chemicals 7#a7 ,in general ,subpart ,d of part ,,iv of subchapter ,a of chapter #a of the ,internal ,revenue ,code of #aihf is amended by adding at the end the following new section3 #de,s4 ,credit for production of renewable chemicals 7a7 ,in general ,for purposes of section #ch1 the production credit for renewable chemicals for any taxable year is an amount 7determined separately for each renewable chemical produced by the taxpayer7 equal to #j4ae per pound of biobased content of each renewable chemical produced by the taxpayer during the taxable year4 7b7 ,limitation ,the amount of the credit determined under subsection 7a7 with respect to a renewable chemical produced by the taxpayer during any taxable year shall not exceed the credit amount allocated for purposes of this section by the ,secretary to the taxpayer with respect to such chemical for such taxable year under section #dh;,e7e74 7c7 ,biobased content ,for purposes of this section1 the term biobased content means1 with respect to any renewable chemical1 the biobased content of the total mass of organic carbon in such chemical 7expressed as a percentage71 determined by testing representative samples using the ,american ,society for ,testing and ,materials 7,,astm7 ,d#fhff4 7d7 ,renewable chemical ,for purposes of this section-- 7#a7 ,in general ,the term renewable chemical means any chemical which-- 7,a7 is produced by the taxpayer in the ,united ,states 7or in a territory or possession of the ,united ,states7 from renewable biomass4 ,for purposes of this section1 the term renewable biomass has the meaning given such term in section #ijja7ac7 of the ,farm ,security and ,rural ,investment ,act of #bjjb 7#g ,u4,s4,c4 #haja7ac771 7,b7 is sold or used by the taxpayer-- 7i7 for the production of chemical products1 polymers1 plastics1 or formulated products1 or 7ii7 as chemicals1 polymers1 plastics1 or formulated products1 7,c7 has a biobased content percentage of #ie percent or higher1 7,d7 is the product of1 or is reliant upon1 biological conversion1 thermal conversion1 or a combination of biological and thermal conversion of renewable biomass1 7,e7 is not sold or used for the production of any food1 feed1 or fuel1 7,f7 is not a combination of renewable chemicals on the list under subparagraph 7,g7 7or added to such list under paragraph 7#b77 for which a credit has been claimed by the taxpayer in any taxable year under this section or section #dh;,e1 and 7,g7 is acetic acid1 acrylic acid1 acyl glutamate1 adipic acid1 algae oils1 algae sugars1 #a1d-;butanediol 7,,bdo71 iso-butanol1 n-butanol1 ,c#aj and higher hydrocarbons produced from olefin metathesis1 carboxylic acids produced from olefin metathesis1 cellulosic sugar1 diethyl methylene malonate1 dodecanedioic acid 7,,ddda71 esters produced from olefin metathesis1 ethyl acetate1 ethylene glycol1 farnesene1 #b1e-;furandicarboxylic acid1 gamma-butyrolactone1 glucaric acid1 hexamethylenediamine 7,,hmd71 #c-;hydroxy propionic acid1 isoprene1 itaconic acid1 levulinic acid1 polyhydroxyalkonate 7,,pha71 polylactic acid 7,,pla71 polyethylene furanoate 7,,pef71 polyethylene terephthalate 7,,pet71 polyitaconic acid1 polyols from vegetable oils1 poly7xylitan levulinate ketal71 #a1c-propanediol1 #a1b-propanediol1 rhamnolipids1 succinic acid1 terephthalic acid1 or p-xylene4 7#b7 ,additional renewable chemicals ,the ,secretary may add chemicals to the list of renewable chemicals in paragraph 7#a77;,g74 ,not later than #ahj days after the enactment of this section1 the ,secretary1 in consultation with the ,secretary of ,agriculture1 shall establish a program to consider applications from taxpayers to add renewable chemicals to such list4 ,any chemical added to such list must meet the requirements set forth in subparagraphs 7,a7 through 7,e7 of paragraph 7#a7 7without regard to the phrase by the taxpayer in subparagraphs 7,a7 and 7,b7 thereof74 7e7 ,coordination with investment credit for renewable chemical production facilities ,see section #dh;,e7f7 for rules coordinating section #dh;,e with this section4 7f7 ,termination ,notwithstanding any other provision of this section or section #dh;,e1 the ,secretary may not allocate any credit amount under this section to any taxable year which begins more than #e years after the date of the enactment of this section4 4 7#b7 ,credit to be part of general business credit ,subsection 7b7 of section #ch of such ,code is amended by striking plus at the end of paragraph 7#ce71 by striking the period at the end of paragraph 7#cf7 and inserting 1 plus1 and by adding at the end the following new paragraph3 7#cg7 the renewable chemicals production credit determined under section #de,s7a74 4 7b7 ,investment credit in lieu of production credit 7#a7 ,in general ,section #df of the ,internal ,revenue ,code of #aihf is amended by striking and at the end of paragraph 7#e71 by striking the period at the end of paragraph 7#f7 and inserting 1 and1 and by adding at the end the following new paragraph3 7#g7 the renewable chemical production facilities credit4 4 7#b7 ,renewable chemical production facilities credit ,subpart ,e of part ,,iv of subchapter ,a of chapter #a of such ,code is amended by inserting after section #dh;,d the following3 #dh;,e4 ,investment credit for renewable chemical production facilities 7a7 ,in general ,for purposes of section #df1 the renewable chemical production facilities credit for any taxable year is an amount equal to #cj percent of the basis of any eligible property which is a part of a renewable chemical production facility placed in service by the taxpayer during such taxable year4 7b7 ,limitation ,the amount of the credit determined under subsection 7a7 with respect to a renewable chemical production facility of the taxpayer during any taxable year shall not exceed the credit amount allocated for purposes of this section by the ,secretary to the taxpayer for such taxable year under subsection 7e74 7c7 ,renewable ,chemical ,production ,facility ,for purposes of this section-- 7#a7 ,in general ,the term renewable chemical production facility means a facility used to produce renewable chemicals-- 7,a7 which is owned by the taxpayer1 7,b7 which is originally placed in service after the date of the enactment of this section and before the first day of the taxable year which begins #f years after the date of the enactment of this section1 and 7,c7 with respect to which-- 7i7 no credit has been allowed under section #de,s1 and 7ii7 the taxpayer makes an irrevocable election to have this section apply4 7#b7 ,eligible property ,the term eligible property means any property-- 7,a7 which is-- 7i7 tangible personal property1 or 7ii7 other tangible property 7not including a building or its structural components71 but only if such property is used as an integral part of the renewable chemical production facility1 and 7,b7 with respect to which depreciation 7or amortization in lieu of depreciation7 is allowable4 7#c7 ,renewable chemical ,the term renewable chemical has the meaning given such term by section #de,s7d74 7d7 ,special rules 7#a7 ,denial of production credit ,no credit shall be allowed under section #de,s for any taxable year with respect to any renewable chemical production facility4 7#b7 ,certain qualified progress expenditures rules made applicable ,rules similar to the rules of subsections 7c77#d7 and 7d7 of section #df 7as in effect on the day before the enactment of the ,revenue ,reconciliation ,act of #aiij7 shall apply for purposes of this section4 7e7 ,national limitation on credits for renewable chemicals 7#a7 ,in general ,not later than #ahj days after the date of the enactment of this section1 the ,secretary1 in consultation with the ,secretary of ,agriculture1 shall establish a program to allocate credit amounts under this section and section #de,s to applicants for taxable years ending after the date of the enactment of this section4 7#b7 ,limitations 7,a7 ,aggregate limitation ,the total amount of credits that may be allocated under such program shall not exceed #ejj1jjj1jjj4 7,b7 ,taxpayer limitation ,the amount of credits that may be allocated to any taxpayer for any taxable year under such program shall not exceed #be1jjj1jjj4 ,for purposes of the preceding sentence1 all persons treated as a single employer under subsection 7a7 or 7b7 of section #eb1 or subsection 7m7 or 7o7 of section #dad1 shall be treated as one taxpayer4 7#c7 ,selection criteria ,in determining to which taxpayers to make allocations of the credit amount under such program1 the ,secretary shall take into consideration-- 7,a7 the number of jobs created and maintained 7directly and indirectly7 in the ,united ,states 7including territories and possessions of the ,united ,states7 as result of such allocation during the credit period and thereafter1 7,b7 the degree to which the production of the renewable chemical demonstrates reduced dependence on imported feedstocks1 petroleum1 non-renewable resources1 or other fossil fuels1 7,c7 the technological innovation involved in the production method of the renewable chemical1 7,d7 the energy efficiency and reduction in lifecycle greenhouse gases of the renewable chemical or of the production method of the renewable chemical1 and 7,e7 whether there is a reasonable expectation of commercial viability4 7#d7 ,redistribution ,if a credit amount allocated to a taxpayer for a taxable year with respect to any renewable chemical or renewable chemical production facility 7determined without regard to this paragraph7 exceeds the amount of the credit with respect to such chemical determined under this section on the taxpayer's return for such taxable year-- 7,a7 the credit amount allocated to such taxpayer for such taxable year with respect to such renewable chemical shall be treated as being the amount so determined on the taxpayer's return1 and 7,b7 such excess may be reallocated by the ,secretary consistent with the requirements of this subsection4 7#e7 ,disclosure of allocations ,the ,secretary shall1 upon making an allocation of credit amount under this section1 publicly disclose the identity of the taxpayer and the amount of the credit with respect to such taxpayer4 7f7 ,coordination with production credit for renewable chemicals 7#a7 ,in general ,if a taxpayer makes an election under paragraph 7#b7 with respect to a renewable chemical production facility1 a credit shall not be allowed under section #de,s for any renewable chemical produced by such facility4 7#b7 ,election ,if no credit has been allowed under section #de,s with respect to a renewable chemical produced by a renewable chemical production facility1 a taxpayer may make an irrevocable election to have this section apply with respect to such facility in lieu of section #de,s with respect to such renewable chemical4 7g7 ,regulations ,the ,secretary shall issue such regulations or other guidance as may be necessary to carry out this section and section #de,s4 7h7 ,termination ,the ,secretary may not allocate any credit amount under this section to any taxable year which begins more than #e years after the date of the enactment of this section4 4 7c7 ,credits allowable against alternative minimum tax ,subparagraph 7,b7 of section #ch7;c77#d7 of such ,code is amended by redesignating clauses 7vii7 through 7ix7 as clauses 7ix7 through 7xi71 respectively1 and by inserting after clause 7vi7 the following new clauses3 7vii7 the credit determined under section #de,s1 7viii7 the credit determined under section #df to the extent that such credit is attributable to the renewable chemical production facilities credit under section #dh;,e1 4 7d7 ,clerical amendments 7#a7 ,the table of sections for subpart ,d of part ,,iv of subchapter ,a of chapter #a of such ,code is amended by adding at the end the following new item3 ,sec4 #de,s4 ,credit for production of renewable chemicals4 4 7#b7 ,the table of sections for subpart ,e of part ,,iv of subchapter ,a of chapter #a of such ,code is amended by adding at the end the following new item3 ,sec4 #dh;,e4 ,investment credit for renewable chemical production facilities4 4 7e7 ,effective dates 7#a7 ,production credit ,the amendments made by subsection 7a7 shall apply to renewable chemicals produced after the date of the enactment of this ,act1 in taxable years ending after such date4 7#b7 ,investment credit ,the amendments made by subsection 7b7 shall apply to renewable chemical production facilities placed in service after the date of the enactment of this ,act1 in taxable years ending after such date4