,i #aaith ,,congress #b;d ,session ,h4 ,r4 #hacg ,,in ,,the ,,house ,,of ,,representatives ,march #bg1 #bjbf,mrs4 ,fischbach 7for herself and ,ms4 ,budzinski7 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 establish tax credits for the production of1 and investment in1 certain renewable materials4 #a4 ,credit for renewable materials production 7a7 ,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;,,bb4 ,renewable materials production credit 7a7 ,allowance of credit ,for purposes of section #ch1 the renewable materials production credit for any taxable year is an amount equal to the product of-- 7#a7 #aj cents1 multiplied by 7#b7 the number of pounds of qualified renewable material which is-- 7,a7 produced by the taxpayer during such taxable year at a renewable material production facility1 and 7,b7 either-- 7i7 sold by the taxpayer to an unrelated person1 or 7ii7 used by the taxpayer producing such qualified renewable material1 only if such sale or use is in a trade or business of the taxpayer during the taxable year4 7b7 ,definitions ,for purposes of this section-- 7#a7 ,qualified renewable material 7,a7 ,in general ,the term qualified renewable material means the biobased carbon content portion of any product1 including a chemical1 produced using biological conversion1 thermal conversion1 catalytic conversion1 chemical conversion1 or a combination thereof1 from biomass4 7,b7 ,exclusions ,the term qualified renewable material shall not include any product-- 7i7 which is suitable for use as a fuel in any vehicle 7whether or not the vehicle is manufactured primarily for use on public streets1 roads1 and highways71 marine vessel1 watercraft1 or aircraft1 7ii7 used to generate heat or electricity1 7iii7 which is suitable for use as food or feed1 7iv7 produced from biomass which was not manufactured1 produced1 grown1 or extracted in whole or in significant part within-- 7,i7 the ,united ,states 7within the meaning of section #fch7a771 or 7,,ii7 a possession of the ,united ,states 7within the meaning of section #fch7b771 or 7v7 which is derived from coprocessing biomass with a feedstock which is not biomass4 7,c7 ,first sale or use to qualify ,in the case where multiple points in a supply chain may be eligible under this section1 the qualified renewable material that first meets the requirements of this section will be the only qualified renewable material eligible4 7#b7 ,biobased carbon content portion ,the term biobased carbon content portion means the biobased carbon content as determined pursuant to ,,astm ,d#fhff4 7#c7 ,biomass ,the term biomass has the same meaning given such term in section #de,k7c77#c71 except biomass does not include any qualified renewable material4 7#d7 ,renewable material production facility ,the term renewable material production facility means any facility-- 7,a7 that produces qualified renewable material during a qualifying credit period1 and 7,b7 located in the ,united ,states or a possession of the ,united ,states 7within the meaning of section #fch7b774 7#e7 ,qualifying credit period 7,a7 ,in general ,the term qualifying credit period means the #aj-year period beginning on the later of-- 7i7 the date the renewable material production facility was originally placed in service1 7ii7 the date the modifications described in subparagraph 7,b7 were placed in service1 or 7iii7 the date of enactment of this section4 7,b7 ,modifications ,the modifications described in this subparagraph are substantial modifications to an existing facility which allow such facility to produce qualified renewable material4 7c7 ,special rules 7#a7 ,credit attributable to taxpayer 7,a7 ,in general ,except as otherwise provided in subparagraph 7,b7 or in any regulations prescribed by the ,secretary1 any credit under this section shall be attributable to the person that sells or uses the qualified renewable material4 7,b7 ,election ,if the person described in subparagraph 7,a7 makes an election under this subparagraph in such time and manner as the ,secretary may prescribe by regulations1 the credit under this section-- 7i7 shall be allowable to the person to whom the qualified renewable material is sold1 and 7ii7 shall not be allowable to the person described in subparagraph 7,a74 7#b7 ,coordination with investment credit ,the term renewable material production facility shall not include any facility for which a renewable materials investment credit determined under section #dh;,f is allowed under section #ch for the taxable year or any prior taxable year4 7#c7 ,credit reduced for tax-exempt bonds ,rules similar to the rules of section #de7;b77#c7 shall apply4 7#d7 ,limitation ,the amount of the credit determined under subsection 7a7 with respect to any facility for any taxable year 7determined after the application of paragraph 7#c77 shall not exceed #aj1jjj1jjj4 4 7b7 ,coordination with clean fuel production credit ,section #de,z7d77#d77;,b7 is amended by adding at the end the following3 7iv7 ,the renewable materials production credit under section #de;,,bb4 4 7c7 ,credit made transferable ,section #fdah7;f77#a7 is amended-- 7#a7 in subparagraph 7,a7 by adding at the end the following3 7xii7 ,the renewable materials production credit determined under section #de;,,bb4 1 and 7#b7 in subparagraph 7,b71 by striking or 7vii7 and inserting 7vii71 or 7xii74 7d7 ,credit made part of general business credit ,subsection 7b7 of section #ch of such ,code is amended by striking plus at the end of paragraph 7#dj71 by striking the period at the end of paragraph 7#da7 and inserting 1 plus1 and by adding at the end the following new paragraph3 7#db7 the renewable materials production credit determined under section #de;,,bb4 4 7e7 ,clerical amendment ,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 following3 ,sec4 #de;,,bb4 ,renewable materials production credit4 4 7f7 ,regulations ,the ,secretary1 in consultation with the ,secretary of ,agriculture1 shall establish regulations or other guidance for implementing the credit established under this section within #ahj days of the date of enactment4 7g7 ,effective date ,the amendments made by this section shall apply to qualified renewable material produced on or after the date of enactment4 #b4 ,credit for renewable materials investment 7a7 ,in general ,subpart ,e 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 #dh;,f4 ,renewable materials investment credit 7a7 ,allowance of credit ,for purposes of section #df1 the renewable materials investment credit for any taxable year is an amount equal to #cj percent of the qualified investment for the taxable year with respect to any qualified facility4 7b7 ,qualified investment 7#a7 ,in general ,for purposes of subsection 7a71 the qualified investment for any taxable year with respect to any qualified facility is the basis of any qualified property placed in service by the taxpayer during such taxable year which-- 7,a7 is used in the production of qualified renewable material1 and 7,b7 is part of a qualified facility4 7#b7 ,qualified property ,for purposes of this section1 the term qualified property means 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 qualified facility1 7,b7 with respect to which depreciation 7or amortization in lieu of depreciation7 is allowable1 7,c7 which is constructed1 reconstructed1 erected1 or acquired by the taxpayer1 and 7,d7 the original use of which commences with the taxpayer4 7#c7 ,qualified facility 7,a7 ,in general ,the term qualified facility means a renewable material production facility within the meaning of section #de;,,bb7b77#c74 7,b7 ,exclusion ,the term qualified facility shall not include any facility for which a renewable materials production credit determined under section #de;,,bb is allowed under section #ch for the taxable year or any prior taxable year4 7#d7 ,coordination with rehabilitation credit ,the qualified investment with respect to any qualified facility for any taxable year shall not include that portion of the basis of any property which is attributable to qualified rehabilitation expenditures 7as defined in section #dg7;c77#b774 7c7 ,special rules 7#a7 ,certain progress expenditure 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 date of the enactment of the ,revenue ,reconciliation ,act of #aiij7 shall apply for purposes of subsection 7a74 7#b7 ,credit reduced for tax-exempt bonds ,rules similar to the rules of section #de7;b77#c7 shall apply4 4 7b7 ,coordination with clean fuel production credit ,section #de,z7d77#d77;,b71 as amended by section #a1 is amended by adding at the end the following3 7v7 ,the credit determined under section #df to the extent that such credit is attributable to the renewable materials investment credit4 4 7c7 ,credit made transferable ,section #fdah1 as amended by section #a1 is amended-- 7#a7 in subsection 7f77#a77;,a7 by adding at the end the following3 7xiii7 ,the renewable materials investment credit determined under section #dh;,f4 1 and 7#b7 in paragraph 7g77#c7 by striking 7xi7 and inserting 7xi71 or 7xiii714 7d7 ,conforming amendments 7#a7 ,section #df of such ,code is amended-- 7,a7 in paragraph 7#f7 by striking and at the end1 7,b7 in paragraph 7#g7 by striking the period at the end and inserting 1 and1 and 7,c7 by adding at the end the following3 7#h7 the renewable materials investment credit4 4 7#b7 ,section #di7;a77#a77;,c7 of such ,code is amended-- 7,a7 by striking and at the end of clause 7vii71 7,b7 by striking the period at the end of clause 7viii7 and inserting 1 and1 and 7,c7 by adding at the end the following new clause3 7ix7 the basis of any qualified property which is part of a qualified facility under section #dh;,f4 4 7#c7 ,section #ej7;a77#b77;,e7 of such ,code is amended by striking or #dh;,e7e7 and inserting #dh;,e7e71 or #dh;,f7c77#a74 7#d7 ,the table of sections for subpart ,e of part ,,iv of subchapter ,a of chapter #a of such ,code is amended by inserting after the item relating to section #dh;,e the following new item3 ,sec4 #dh;,f4 ,renewable materials investment credit4 4 7e7 ,regulations ,the ,secretary1 in consultation with the ,secretary of ,agriculture1 shall establish regulations or other guidance for implementing the credit established under this section within #ahj days of the date of enactment4 7f7 ,effective date ,the amendments made by this section shall apply to property placed in service after the date of enactment4