Summary

Creates new federal tax incentives for U.S. production and investment in qualifying renewable chemicals. The law establishes a production tax credit equal to 15% of the sales price per pound (adjusted for non‑biobased share) for each qualifying renewable chemical sold at retail by the taxpayer, plus related investment credit rules, detailed eligibility definitions, certification and reporting requirements, and Treasury/IRS administration and enforcement provisions.

• Creates a production tax credit equal to 15% of the sales price per pound for qualifying renewable chemicals sold at retail by the taxpayer.
• Credit amount is reduced to reflect any portion of the product that is not biobased and is calculated separately for each chemical.
• Eligibility requires U.S. production from U.S. renewable biomass, at least 95% biobased content, USDA Certified Biobased approval, and exclusion of uses as food, feed, fuel, or pharmaceuticals.
• Includes credits for investments in renewable chemical production facilities and ties credit availability to Secretary allocations under an allocation mechanism.
• Requires ASTM D6866 testing to measure biobased content and relies on USDA certification for label approval.
• Contains election, certification, verification, reporting, and compliance rules and directs Treasury/IRS to issue guidance and regulations.
• Establishes basis adjustment and recapture interactions with other tax provisions to prevent improper double benefits.
• Applies to chemicals produced by the taxpayer or by a contract manufacturer under a binding written agreement.