,i #aafth ,,congress #b;d ,session ,h4 ,r4 #hhgi ,,in ,,the ,,house ,,of ,,representatives ,december #d1 #bjbj,mr4 ,pascrell 7for himself and ,mr4 ,fitzpatrick7 introduced the following bill2 which was referred to the ,committee on ,ways and ,means ,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 #bjbj4 #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,u4 ,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 chemical7 equal to-- 7#a7 #ae percent of the sales price of each pound of a renewable chemical-- 7,a7 produced-- 7i7 by the taxpayer1 or 7ii7 for the taxpayer by a contract manufacturer under a binding written agreement1 and 7,b7 sold for its fair market value at retail by the taxpayer during the taxable year1 reduced by 7#b7 a percentage equal to so much of the percentage of the renewable chemical as is not biobased content4 7b7 ,limitation ,the amount of the credit determined under subsection 7a7 with respect to a renewable chemical sold 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;,e4 7c7 ,definitions ,for purposes of this section-- 7#a7 ,renewable chemical ,the term renewable chemical means any chemical which-- 7,a7 is produced in the ,united ,states 7or in a territory or possession of the ,united ,states7 from renewable biomass1 7,b7 is not less than #ie percent biobased content1 7,c7 is not sold or used for the production of any food1 feed1 fuel1 or pharmaceuticals1 7,d7 is approved to use the ,,usda ,certified ,biobased ,product label under section #ijjb7;b7 of the ,farm ,security and ,rural ,investment ,act of #bjjb 7#g ,u4,s4,c4 #hajb7;b771 and 7,e7 is a chemical intermediate 7as such term is defined in section #cbja4aji of title #g1 ,code of ,federal ,regulations 7or successor regulations774 7#b7 ,biobased content ,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 7#c7 ,renewable biomass ,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 #haja7ac774 7d7 ,national limitation on credits for renewable chemicals ,see section #dh;,e7e7 for rules relating to national limitation on credits under this section4 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#cb71 by striking the period at the end of paragraph 7#cc7 and inserting 1 plus1 and by adding at the end the following new paragraph3 7#cd7 the renewable chemicals production credit determined under section #de,u7a74 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-- 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 7,c7 with respect to which-- 7i7 no credit has been allowed under section #de,u for chemicals produced at such facility in any previous taxable year1 and 7ii7 the taxpayer makes an irrevocable election to have this section apply1 and 7,d7 which is primarily used to produce renewable chemicals4 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,u7c77#a74 7d7 ,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,u to taxpayers who produce renewable chemicals 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 under such program shall not exceed #abe1jjj1jjj4 ,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 a 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 7,e7 whether there is a reasonable expectation of commercial viability1 7,f7 whether the renewable chemical has an established market1 and 7,g7 whether the renewable chemical is currently being produced in commercial quantities4 7#d7 ,review and reallocation 7,a7 ,review ,not later than #f years after the date of the enactment of this section1 the ,secretary shall review the credits allocated under this section4 7,b7 ,reallocation ,if the ,secretary determines that unused credits are available for reallocation after the review described in subparagraph 7,a71 the ,secretary is authorized to conduct an additional program for applications for certification4 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 ,if a taxpayer makes an election under subsection 7c77#a77;,c77ii7 with respect to a renewable chemical production facility1 a credit shall not be allowed under section #de,u for any renewable chemical produced by such facility4 7g7 ,regulations ,the ,secretary shall issue such regulations or other guidance as may be necessary to carry out this section and section #de,u4 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 the ,internal ,revenue ,code of #aihf 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,u1 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 the ,internal ,revenue ,code of #aihf is amended by adding at the end the following new item3 ,sec4 #de,u4 ,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 ,the amendments made by this section shall apply to renewable chemicals produced and renewable chemical production facilities placed in service after the date of the enactment of this ,act1 in taxable years ending after such date4