Qualifying Renewable Chemical Production or Investment Tax Credit Act of 2015

Summary: Qualifying Renewable Chemical Production or Investment Tax Credit Act of 2015 This bill amends the Internal Revenue Code to allow a business-related tax credit for the production of renewable chemicals. The bill defines &quot;renewable chemical&quot; as any chemical that: (1) is produced in the United States from renewable biomass; (2) is sold or used for the production of chemical products, polymers, plastics, or formulated products or as chemicals, polymers, plastics, or formulated products; (3) has a biobased content of 95% or higher; (4) is the product of, or reliant upon, biological or thermal conversion of renewable biomass; (5) is not sold or used for the production of any food, feed, or fuel; and (6) is not a combination of certain specified renewable chemicals.  The bill also allows a tax credit for investment in renewable chemical production facilities. The bill requires the Department of the Treasury to establish a program to allocate renewable chemical tax credit amounts to eligible taxpayers and imposes an aggregate limit on the amount of credits that may be allocated to not more than $500 million during the 5-year period after enactment of this Act. 

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Qualifying Renewable Chemical 
Production or Investment Tax Credit Act of 2015''.

SEC. 2. CREDITS FOR PRODUCTION OF RENEWABLE CHEMICALS AND INVESTMENTS 
              IN RENEWABLE CHEMICAL PRODUCTION FACILITIES.

    (a) Production of Renewable Chemicals.--
            (1) In general.--Subpart D of part IV of subchapter A of 
        chapter 1 of the Internal Revenue Code of 1986 is amended by 
        adding at the end the following new section:

``SEC. 45S. CREDIT FOR PRODUCTION OF RENEWABLE CHEMICALS.

    ``(a) In General.--For purposes of section 38, the production 
credit for renewable chemicals for any taxable year is an amount 
(determined separately for each renewable chemical produced by the 
taxpayer) equal to $0.15 per pound of biobased content of renewable 
chemical produced by the taxpayer during the taxable year.
    ``(b) Limitation.--The amount of the credit determined under 
subsection (a) with respect to a renewable chemical produced by the 
taxpayer 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 
48E(e).
    ``(c) Biobased Content.--For purposes of this section, the term 
`biobased content' means, with respect to any renewable chemical, the 
biobased content of the total mass of organic carbon in such chemical 
(expressed as a percentage), determined by testing representative 
samples using the American Society for Testing and Materials (ASTM) 
D6866.
    ``(d) Renewable Chemical.--For purposes of this section--
            ``(1) In general.--The term `renewable chemical' means any 
        chemical which--
                    ``(A) is produced by the taxpayer in the United 
                States (or in a territory or possession of the United 
                States) from renewable biomass. For purposes of this 
                section, the term `renewable biomass' has the meaning 
                given such term in section 9001(13) of the Farm 
                Security and Rural Investment Act of 2002 (7 U.S.C. 
                8101(13));
                    ``(B) is sold, or used, by the taxpayer--
                            ``(i) for the production of chemical 
                        products, polymers, plastics, or formulated 
                        products, or
                            ``(ii) as chemicals, polymers, plastics, or 
                        formulated products;
                    ``(C) the biobased content percentage of which is 
                95 percent or higher;
                    ``(D) is the product of, or reliant upon, 
                biological conversion, thermal conversion, or a 
                combination of biological and thermal conversion, of 
                renewable biomass;
                    ``(E) is not sold or used for the production of any 
                food, feed, or fuel;
                    ``(F) is not a combination of renewable chemicals 
                on the list under subparagraph (G) (or added to the 
                list under paragraph (2)) for which a credit has been 
                taken under this section or section 48E; and
                    ``(G) is included on the following list of 
                renewable chemicals eligible for credit: acetic acid; 
                acrylic acid; acyl glutamate; adipic acid; algae oils; 
                algae sugars; aromatics; 1,4-butanediol (BDO); iso-
                butanol; n-butanol; carboxylic acids; cellulosic sugar; 
                diethyl methylene malonate; ethyl acetate; farnesene; 
                gamma-butyrolactone; hexamethylenediamine (HMD); 3-
                hydroxy propionic acid; glucaric acid; C10 
                hydrocarbons; isoprene; itaconic acid; ketals; 
                levulinic acid; olefins; polyhydroxyalkonate (PHA); 
                polylactic acid (PLA); polyitaconic acid; polyols from 
                vegetable oils; poly(xylitan levulinate ketal); 1,3-
                propanediol; 1,2-propanediol; succinic acid; terpenes; 
                thiols; p-xylene.
            ``(2) Additional renewable chemicals.--The Secretary may 
        add chemicals to the list of renewable chemicals established in 
        paragraph (1)(G). Not later than 180 days after the enactment 
        of this section, the Secretary, in consultation with the 
        Secretary of Agriculture, shall establish a program to consider 
        applications from taxpayers to add renewable chemicals to the 
        list. Any chemical added to the list must meet the requirements 
        set forth in subparagraphs (A) through (F) of paragraph (1).
    ``(e) Coordination With Investment Credit for Renewable Chemical 
Production Facilities.--See section 48E(f) for rules coordinating 
section 48E with this section.
    ``(f) Termination.--Notwithstanding any other provision of this 
section, the Secretary may not allocate any credit amount under this 
section to any taxable year which begins more than 5 years after the 
date of the enactment of this section.''.
            (2) Credit to be part of general business credit.--
        Subsection (b) of section 38 of such Code is amended by 
        striking ``plus'' at the end of paragraph (35), by striking the 
        period at the end of paragraph (36) and inserting ``, plus'', 
        and by adding at the end the following new paragraph:
            ``(37) the renewable chemicals production credit determined 
        under section 45S(a).''.
    (b) Investment Credit in Lieu of Production Credit.--
            (1) In general.--Section 46 of such Code is amended by 
        striking ``and'' at the end of paragraph (5), by striking the 
        period at the end of paragraph (6) and inserting ``, and'', and 
        by adding at the end the following new paragraph:
            ``(6) the renewable chemical production facilities 
        credit.''.
            (2) Renewable chemical production facilities credit.--
        Subpart E of part IV of subchapter A of chapter 1 of such Code 
        is amended by inserting after section 48D the following:

``SEC. 48E. INVESTMENT CREDIT FOR RENEWABLE CHEMICAL PRODUCTION 
              FACILITIES.

    ``(a) In General.--For purposes of section 46, the renewable 
chemical production facilities credit for any taxable year is an amount 
equal to 30 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 year.
    ``(b) Limitation.--The amount of the credit determined under 
subsection (a) 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 (e).
    ``(c) Renewable Chemical Production Facility.--For purposes of this 
section--
            ``(1) In general.--The term `renewable chemical production 
        facility' means a facility used to produce renewable 
        chemicals--
                    ``(A) which is owned by the taxpayer,
                    ``(B) which is originally placed after the date of 
                the enactment of this section and before the first day 
                of the taxable year which begins 6 years after the date 
                of the enactment of this section, and
                    ``(C) with respect to which--
                            ``(i) no credit has been allowed under 
                        section 45S, and
                            ``(ii) the taxpayer makes an irrevocable 
                        election to have this section apply to such 
                        facility.
            ``(2) Eligible property.--The term `eligible property' 
        means any property--
                    ``(A) which is--
                            ``(i) tangible personal property, or
                            ``(ii) other tangible property (not 
                        including a building or its structural 
                        components),
                but only if such property is used as an integral part 
                of the renewable chemical production facility, and
                    ``(B) with respect to which depreciation (or 
                amortization in lieu of depreciation) is allowable.
            ``(3) Renewable chemical.--The term `renewable chemical' 
        has the meaning given such term by section 45S(d).
    ``(d) Special Rules.--
            ``(1) Denial of production credit.--No credit shall be 
        allowed under section 45S for any taxable year with respect to 
        any renewable chemical production facility.
            ``(2) Certain qualified progress expenditures rules made 
        applicable.--Rules similar to the rules of subsections (c)(4) 
        and (d) of section 46 (as in effect on the day before the 
        enactment of the Revenue Reconciliation Act of 1990 shall apply 
        for purposes of this section.
    ``(e) National Limitation on Credits for Renewable Chemicals.--
            ``(1) In general.--Not later than 180 days after the date 
        of the enactment of this section, the Secretary, in 
        consultation with the Secretary of Agriculture, shall establish 
        a program to allocate credit amounts under this section and 
        section 45S to applicants for taxable years.
            ``(2) Limitations.--
                    ``(A) Aggregate limitation.--The total amount of 
                credits that may be allocated under such program shall 
                not exceed $500,000,000.
                    ``(B) Taxpayer limitation.--The amount of credits 
                that may be allocated to any taxpayer for any taxable 
                year under such program shall not exceed $25,000,000. 
                For purposes of the preceding sentence, all persons 
                treated as a single employer under subsection (a) or 
                (b) of section 52, or subsection (m) or (o) of section 
                414, shall be treated as one person.
            ``(3) Selection criteria.--In determining which taxpayers 
        to make allocations of credit amount under such program, the 
        Secretary shall take into consideration--
                    ``(A) the number of jobs created and maintained 
                (directly and indirectly) in the United States 
                (including territories and possessions of the United 
                States) as result of such allocation during the credit 
                period and thereafter,
                    ``(B) the degree to which the production of the 
                renewable chemical demonstrates reduced dependence on 
                imported feedstocks, petroleum, non-renewable 
                resources, or other fossil fuels,
                    ``(C) the technological innovation involved in the 
                production method of the renewable chemical,
                    ``(D) the energy efficiency and reduction in 
                lifecycle greenhouse gases of the renewable chemical or 
                of the production method of the renewable chemical, and
                    ``(E) whether there is a reasonable expectation of 
                commercial viability.
            ``(4) Redistribution.--If a credit amount allocated to a 
        taxpayer for a taxable year with respect to any renewable 
        chemical or renewable chemical production facility (determined 
        without regard to this paragraph) exceeds the amount of the 
        credit with respect to such chemical determined under this 
        section on the taxpayer's return for such taxable year--
                    ``(A) the credit amount allocated to such taxpayer 
                for such taxable year with respect to such renewable 
                chemical shall be treated as being the amount so 
                determined on the taxpayer's return, and
                    ``(B) such excess may, subject to subsection (e), 
                be reallocated by the Secretary consistent with the 
                requirements of paragraphs (2)(B) and (3).
            ``(5) Disclosure of allocations.--The Secretary shall, upon 
        making an allocation of credit amount under this section, 
        publicly disclose the identity of the applicant and the amount 
        of the credit with respect to such applicant.
    ``(f) Coordination With Production Credit for Renewable 
Chemicals.--
            ``(1) In general.--If a taxpayer makes an election under 
        paragraph (2) with respect to a renewable chemical production 
        facility, a credit shall not be allowed under section 45S for 
        any renewable chemical produced by such facility.
            ``(2) Election.--If no credit has been allowed under 
        section 45S with respect to a renewable chemical produced by a 
        renewable chemical production facility, a taxpayer may make an 
        irrevocable election to have this section apply with respect to 
        such facility in lieu of section 45S with respect to such 
        renewable chemical.
    ``(g) Regulations.--The Secretary shall issue such regulations or 
other guidance as may be necessary to carry out this section and 
section 45S.
    ``(h) Termination.--The Secretary may not allocate any credit 
amount under this section to any taxable year which begins more than 5 
years after the date of the enactment of this section.''.
    (c) Credits Allowable Against Alternative Minimum Tax.--
Subparagraph (B) of section 38(c)(4) of such Code is amended by 
redesignating clauses (vii) through (ix) as clauses (ix) through (xi), 
respectively, and by inserting after clause (vi) the following new 
clauses:
                            ``(vii) the credit determined under section 
                        45S,
                            ``(viii) the credit determined under 
                        section 46 to the extent that such credit is 
                        attributable to the renewable chemical 
                        production facilities credit under section 
                        48E,''.
    (d) Clerical Amendments.--
            (1) The table of sections for subpart D of part IV of 
        subchapter A of chapter 1 of such Code is amended by adding at 
        the end the following new item:

``Sec. 45S. Credit for production of renewable chemicals.''.
            (2) The table of sections for subpart E of part IV of 
        subchapter A of chapter 1 of such Code is amended by adding at 
        the end the following new item:

``Sec. 48E. Investment credit for renewable chemical production 
                            facilities.''.
    (e) Effective Dates.--
            (1) Production credit.--The amendments made by subsection 
        (a) shall apply to renewable chemicals produced after the date 
        of the enactment of this Act, in taxable years ending after 
        such date.
            (2) Investment credit.--The amendments made by subsection 
        (b) shall apply to renewable chemical production facilities 
        placed in service after the date of the enactment of this Act, 
        in taxable years ending after such date.