On August 1, 2024, Senators Sherrod Brown (D-OH) and Pete Ricketts (R-NE) introduced the Renewable Chemicals Act of 2024 (S. 4931), bipartisan legislation that would “advance the manufacturing of renewable biochemicals from domestic biomass in the United States by creating a tax credit for the production of these chemicals by American companies.” According to Brown’s August 13, 2024, press release, the legislation would help to build new markets for domestically produced biomass, advance American energy independence, and create American jobs in the chemical industry through a tax credit for either the production of renewable chemicals or investment in renewable chemical production facilities. The press release states that the bill would:

• Create a targeted, short-term production tax credit of 15 percent of the sales price of each pound of a renewable chemical produced and sold for its fair market value at retail by American biochemical producers during the taxable year; and
• In lieu of the production tax credit, producers could elect to take a 30 percent investment tax credit for qualified investments in new renewable chemical production facilities. Taxpayers would be prohibited from electing to take both credits.

The bill was referred to the Senate Committee on Finance.