In his continued effort to promote American manufacturing, U.S. Rep. Bill Pascrell, Jr. (D-NJ) today introduced the Qualifying Renewable Chemical Production Tax Credit Act of 2013, H.R. 3084, bipartisan legislation which provides renewable chemical producers access to a production tax credit when they create American jobs and reduce our dependence on foreign oil. The legislation, co-sponsored by Rep. Steve Stockman (R-TX), will provide a targeted tax credit for U.S. producers of qualifying renewable chemicals, helping them to commercialize homegrown technology and build new biorefineries in the United States.
"By leveling the playing field for the biochemical sector, we are strengthening America's role as the leader in developing this groundbreaking industry," said Rep. Pascrell. "Creating good jobs right here in America is the best way to bolster our economy, and this legislation does just that while reducing our reliance on foreign oil and ensuring a more sustainable future."
Renewable chemical companies are a part of a new and growing industry that uses renewable 'feedstocks' to replace oil when making various chemicals. The chemicals that they produce are used in many everyday products, including car parts, stain resistant rugs and computer screens.
Given that this technology is new, the cost of their product is higher than those manufactured using traditional, petroleum based inputs. Due to the lack of U.S. federal support, many companies are being bought by foreign entities, who then export the jobs producing these chemicals.
The Qualifying Renewable Chemical Production Tax Credit Act of 2013 creates a targeted, short term tax credit for production of eligible renewable chemicals, with priority given to companies that create jobs in the United States.
This legislation would also have a significant impact in reducing America's dependence on foreign oil. Currently, 10% of each barrel of imported petroleum goes to making chemicals and products, rather than transportation fuels. Substitution of renewable feedstock for petroleum is not only more environmentally sustainable, but would increase the petroleum supply available for fuel products and help lower gas prices.
In the 112th Congress, Rep. Pascrell introduced a bipartisan bill, H.R. 4953, with Reps. Brian Bilbray and Richard Neal that proposed a production tax credit to accelerate commercialization of the renewable chemicals and biobased products industry. A companion bill, S. 1267, was introduced in the Senate by Sen. Debbie Stabenow (D-MI).
Original co-sponsors of the Qualifying Renewable Chemical Production Tax Credit Act of 2013 include Reps. Allyson Schwartz (D-PA), Linda Sanchez (D-CA) and Richard Neal (D-MA).