SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Qualifying Renewable Chemical 
Production Tax Credit Act of 2012''.

SEC. 2. CREDIT FOR THE PRODUCTION OF RENEWABLE CHEMICALS.

    (a) 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 renewable 
chemicals production credit for any taxable year is an amount 
(determined separately for each renewable chemical produced by the 
taxpayer) equal to $0.15 per pound of eligible content of renewable 
chemical produced by the taxpayer during the taxable year.
    ``(b) Limitation.--The credit determined under subsection (a) with 
respect to any renewable chemical produced by any taxpayer during any 
taxable year shall not exceed the credit amount allocated by the 
Secretary to the taxpayer with respect to such chemical for such 
taxable year under subsection (e).
    ``(c) Eligible Content.--For purposes of this section--
            ``(1) In general.--The term `eligible content' means, with 
        respect to any renewable chemical, the biobased content 
        percentage of the total mass of organic carbon in such 
        chemical.
            ``(2) Biobased content percentage.--The term `biobased 
        content percentage' means, with respect to any renewable 
        chemical, the biobased content of 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,
                    ``(B) is sold, or used, by the taxpayer--
                            ``(i) for the production of polymers, 
                        plastics, or formulated products, or
                            ``(ii) as polymers, plastics, or formulated 
                        products, and
                    ``(C) is not sold or used for the production of any 
                food, feed, or fuel.
            ``(2) Exceptions.--Such term shall not include any chemical 
        if--
                    ``(A) the biobased content percentage of such 
                chemical is less than 25 percent,
                    ``(B) 10,000,000 pounds or more of such chemical 
                was produced during calendar year 2000 from renewable 
                biomass,
                    ``(C) such chemical is not either the product of, 
                or reliant upon, biological conversion, thermal 
                conversion, or a combination of biological and thermal 
                conversion, of renewable biomass, or
                    ``(D) such chemical is composed of renewable 
                chemicals that are eligible for a credit under this 
                section.
            ``(3) Renewable biomass.--The term `renewable biomass' has 
        the meaning given such term in section 9001(12) of the Farm 
        Security and Rural Investment Act of 2002 (7 U.S.C. 8101(12)).
    ``(e) Allocation of Credit Amounts.--
            ``(1) In general.--Not later than 180 days after enactment 
        of this section, the Secretary, in consultation with the 
        Secretary of Agriculture, shall establish a program to allocate 
        credit amounts under this section 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 this section, 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 (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 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) 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.''.
    (b) Credit To Be Part of General Business Credit.--
            (1) In general.--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).''.
            (2) Credit 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 (viii) 
        through (x), respectively, and by inserting after clause (vi) 
        the following new clause:
                            ``(vii) the credit determined under section 
                        45S,''.
    (c) Clerical Amendment.--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.''.
    (d) Effective Date.--The amendments made by this section shall 
apply to chemicals produced after the date of the enactment of this 
Act, in taxable years ending after such date.
Qualifying Renewable Chemical Production Tax Credit Act of 2012 - Amends the Internal Revenue Code to allow a business-related tax credit for the production of renewable chemicals. 

Defines "renewable chemical" as any chemical that is: (1) produced in the United States from renewable biomass; (2) sold or used by the taxpayer as polymers, plastics, or formulated products or for the production of polymers, plastics, or formulated products; and (3) not sold or used for the production of any food, feed, or fuel.  Exempts certain chemicals, including those with a biobased content of less than 25%.

Directs the Secretary of Agriculture to establish a five-year program to allocate credit amounts. Limits the total amount of allocable credits under such program to $500 million, with a limit of $25 million to any taxpayer in any taxable year.
A bill to cut taxes for innovative businesses that produce renewable chemicals.